K3 Capital Share Discussion Threads

[tomg23] 04/4/2019 14:50

Think some are also taking their losses before the end of the tax year tomorrow. The lack of trading update is really killing the share price. A profit warning seems priced in at these levels so anything in line and above the Price should take off. Time to back up the truck :-)

[pireric] 04/4/2019 14:43

Still incredible price action. Stops being taken out left right and centre. 35% of the market cap wiped out since the start of February alone

If this is related to fund redemptions then I seriously hope those funds don't get any privilege by management teams in small cap investing into the future. The likes of Miton have trashed the share price at L.SDI a few months back as they exited

[simba_] 04/4/2019 11:25

Eventually picked up a small amount this morning @ 171p. It's dropped over 20% since I became interested and I think the risk/reward is now more favourable.~170p was at the top end of my buy range so I'm prepared for it fall further and will cautiously buy more while waiting on an update.~Huge opportunity if the market has this wrong.

[basem1] 04/4/2019 08:16

I've just bought in. Been waiting for the chart support October 2017. Hoping it's significant. Certainly looks right.

[pireric] 04/4/2019 07:28

Some minor readacross to #K3C from Finncap today side though I wouldn't put much weight into it. But FCAP trading slightly ahead of management expectations and saying "healthy pipeline of transactions across its services...confident...outlook". Advised on over 79 transactions

[its the oxman] 04/4/2019 00:28

Think sellers are letting this drift down. Best to wait for the trend to play out , as it seems unlikely to rally now until we get some hopefully, positive news.

[pireric] 03/4/2019 17:07

The good news is the sale volumes are dreadful

The bad news is the buy volumes are dreadful

:0)

Naked trader will probably snap some up soon I imagine which would be a nice help just to get the price recovering. S&p 500 nearly at all time. Highs again

[tomg23] 03/4/2019 15:16

Needs people to buy. Maybe people will start to buy at 150p

[insideryou] 03/4/2019 15:10

Very odd... I dont like this...

[pireric] 03/4/2019 15:07

Absolutely incredible price action though on such low vols. Pretty much no buying activity. Similar sort of thing happening at the likes of Finsbury Food

[pireric] 03/4/2019 07:26

If you think that's the case you should short it ;0)

I won't take the bait post!

[opodio] 03/4/2019 00:35

chart spells profit warning and 40p

[pireric] 02/4/2019 22:53

Around abouts 11.6x next 12 months P/E once you ex out the cash
6.2% divi yield
8.1% free cash flow yield

[odys2] 02/4/2019 12:47

You are not alone Tom. I am underwater as well, but hope that not all is lost. I rather prefer to wait patiently for recovery than sell near the bottom.
I noticed that Robbie Burns aka Naked Trader topsliced his K3C holding but nevertheless sees the recent drop in share price as an opportunity to buy again.
He wrote 25/03/19 (hxxp://www.nakedtrader.co.uk/): ..."K3 had a topslice - It has been hit on Brexit worries (less activity) but priced already as if there has been a profit warning it looks value now and time to eye up buying again. It looks like brilliant value now."...

[tomg23] 01/4/2019 22:03

Massive delayed sell gone though which probably crushed the price today. I'm so underwater on this now that I don't care how much further it falls. I just hold to remind me what happens when I don't stick to my game plan.

[pireric] 01/4/2019 20:36

One could argue those trading concerns have taken 100p off the share price, which looks excessive to me!

In line with expectations would be super as it feels to me the market has already baked in a 15% miss... Every time it drops, that discounted miss gets more and more extreme. Hence see pretty much no attraction in reducing, rather the opposite.

[clanger66] 01/4/2019 16:48

I agree with you Pireric. There is supply of stock but I don't feel it's excessive. A lot of the market cap is in "safe" hands and there have been no notifications from large holders selling. I keep checking how much I can buy electronically and it was only around 20k at any one time (however you never know if it is one seller who has more behind and will just reload).
We can't rule out the company putting out a negative update between now and the year end but I'm hopeful that if there had been concerns over meeting expectations this would have been highlighted by now.
I also added today but my purchase showed up as a sell on the trade reports.

[pireric] 01/4/2019 16:11

I'd add that it's been a while since we saw an intra day reversal like today which is nice. As it suggests value hunters are starting to perk up. The market is being incredibly short termist here. Rarely see a company decline by half just on the back of multiple compression because of speculation of the company's trading environment despite, as suggested, they track in line with expectations. Gives a 8.5 - 9% free cash flow yield... Forget P/E for a second as that doesn't capture the super high cash conversion here

[pireric] 01/4/2019 16:08

If they hit market expectations then that is very very contrary to what the market is expecting, but I would caveat that the volumes on this fall are so thin so it's more buyers are scared away than sellers having a real edge

I've added to my position quite materially around 175 just now as I think the market has got this all wrong. It would be nice if they put out a TS to say that they are in line with board/market expectations as I think it could recover quite nicely on the back of it!

[clanger66] 01/4/2019 15:33

I emailed the company and the reason they gave a trading update last year was because regulatory requirements required them to update the market due to performance being materially different from expectations.
Therefore as we've had no update you would expect that current trading is in line with market expectations and that the revenue booking timing issues that were flagged in the interim numbers are on course to rectify themselves for the full year numbers which will be updated in early June.
The share price has come down on incredibly thin volume and I think looks good value here.

[insideryou] 01/4/2019 15:12

Further falls to come but the turn around will be strong. 160 is a buy order for me.

[saj3] 01/4/2019 15:04

Does anyone know when the trading update is? It's falling on very thin volume

[its the oxman] 01/4/2019 14:42

Very tempted to buy but persistent selling continues. Guess downside as I see it is a H2 similar to H1 giving earnings of c.11p. Could see this down to 140p then. That said a return to growth and upside is considerable.

[dan_the_epic] 29/3/2019 19:49

Have been waiting for Naked Trader, and he said a few days ago "K3 had a topslice - It has been hit on Brexit worries (less activity) but priced already as if there has been a profit warning it looks value now and time to eye up buying again. It looks like brilliant value now." I disagree.

[clanger66] 29/3/2019 13:01

Seems to me it's already priced for disappointment. I've re-read the last update a few times now and can not see anything really wrong. Some first half transactions were not completed on time to book the revenue at the interim so expected to be booked in the second half. Volume lousy so not taking much to push the price lower. Stock looks cheap to me.