K3 Business Technology Share Discussion Threads

[spaceparallax] 06/1/2011 12:43

Just PTing. That said, the divi is very poor atm - received mine this morning and it doesn't go very far.
Abigger divi would be nice, but this is more a growth story presently.

[cfro] 05/1/2011 18:32

Surprised to see weakness in the share price That earnings enhancing acquistion looks very shrewd. Dont very often see companies being bought on a PE of only 3! KBT could have easily paid double that imo. Very well played i reckon.

[spaceparallax] 05/1/2011 11:40

Thanks Int - must say I was surprised by the modesty of previous broker upgrades.

[interceptor2] 05/1/2011 11:36

From HB Markets.........

K3 Business Technology Group (KBT, 189.5p, £48.71m)

K3 Business Technology Group (KBT, 189.5p, £48.71m) On the 23rd December K3 announced the acquisition of certain assets of FD Systems (specifically its Sage 200 business unit) for an initial consideration of £0.95m with £0.3m deferred to March 2011. The Sage 200 unit generates revenues of £2.35m with profits of £0.5m with over 40% generated from contracted recurring revenues. The acquisition enhances the EPS outlook. Upgraded forecasts to £8.2m PBT with 23.7p EPS rising to £9.4m PBT with 27.2p EPS put the group on a prospective PER of 8x falling to 7x the following year. We see this as still under-rated and maintain the Buy with an increased price target of 237p – or 10x going historic. BUY (Julian Tolley)

Recommendation: BUY

[spaceparallax] 30/12/2010 13:34

In recent times, this share has taken few backward steps, thus with that forecast and the prospect of significant growth, we're likely to break the 200p barrier early NY once any remaining PTs have been shaken out.

[interceptor2] 30/12/2010 09:40

As well as Edison increasing forecast to 23.7p and 27.2p on the 23rd Dec, Canaccord also increased to 24.4p and 28.6p for 2011 and 2012. The consensus per is appx 8 and 7 now. Canaccord did have a price target of 215p, I don't know if this has changed also, looking at the increased forecasts, I wouldn't be surprised if they nudged it up a tad.

Regards ic2.......

[interceptor2] 23/12/2010 09:58

Agree - Looks a very, good earning enhancing acquisition, with another 330 customers to add to KBT 1500 existing customer base.

KBT have seen the opportunity in hosting and managed services, and seem to be really proactive with recent acquisitions.

Cross selling opportunities should benefit future growth greatly imo.

Regards ic2

[spaceparallax] 23/12/2010 09:54

great, without too much outlay. The recurring revenues and cross-selling ops should contribute nicely to growth.

I'd be very surprised if this doesn't take us through £2.

[eagle eye] 23/12/2010 07:45

Another earnings enhancing acquisition that widens the customer base. Well done again K3, especially at a PER of less than 3!

[spaceparallax] 22/12/2010 12:00

I'd be surprised if we retrace much further - it's likely that a number of watchers will take their opportunity on the dip. After all, the PER remains low, especially for a growth play.

[interceptor2] 21/12/2010 23:05

KBT has had such srong run from 150p, that some consoldation wouldn't be a bad thing. Hopefully a chance to build a new base before the next leg up.

Regards..........

[cfro] 21/12/2010 18:11

There was bound to be a reaction at some point i suppose, after a strong rise the last few days. Very healthy i would say. PE is still only 7.

[spaceparallax] 21/12/2010 12:15

we appear to have a bit of PTing today

[spaceparallax] 21/12/2010 08:43

Thanks Eagle - should give the best insight as to the anticipated effects of the acqn. It gives us plenty of headroom for a PER10.

[eagle eye] 20/12/2010 20:11

spaceparallax,
House broker Canaccord is forecasting eps of 26.5p to F/Y June 2012.

[angler] 20/12/2010 16:14

Consensus remains 22.8. However, Canacord (18/11/10) shows 23.6 and Edison IR (same date)has 23.2. Hope that helps.

[spaceparallax] 20/12/2010 13:42

Looks like we up for a serious assault on the £2 level. Lovely trend with good momentum

[spaceparallax] 20/12/2010 11:24

Sp up again, although I see no declared trades - MMs playing games or perhaps trying to tempt sellers to fill a substantial buy order?

[barretec] 17/12/2010 13:14

After research the video posted by Stegrego at 517 was the clincher, take a look if you're interested in the company.

[barretec] 17/12/2010 13:09

joined the fray at 140p, can't remember who it was that recommended it, I think it was someone on the IQE thread, if it's anyone on hear, thanks.

[barretec] 17/12/2010 13:05

Blimey, don't take much to shift this, well pleased, 240p looks good for the new year.

[spaceparallax] 17/12/2010 11:16

we appear to have strong momentum - heading rapidly towards £2.