Kape Technologies Share Discussion Threads

[basem1] 13/7/2022 11:19

Any whiff of sales weakening will clobber the price so we need to proceed with caution

[basem1] 13/7/2022 11:17

Providing the guidance is still current then it is a strong buy at this level But of course that is a total unknown at present. Do they have many retail clients that will no longer want to afford subscriptions or is the business model more robust than that ? We are probably seen as a tech stock and totally out of favour at present

[bulltradept] 13/7/2022 11:03

Mmmmm the rise in the price happened in Jan of last year when it was at just under £2. Now, £2.85 as I type. And if you go back another year it was at a £1 in Jan 2020! So the growth has been tremendous, but does the price justify the current situation?

My crystal ball isn't working atm!

[basem1] 13/7/2022 10:56

Yes you would think the selling would be exhausted soon but every day there are more people throwing in the towel. Be interesting to see how many are awaiting an entry point like ourselves

[blackfinance] 13/7/2022 10:08

Well if it is any consolation the trade volume is absolutely minute....hundreds and small thousands, very typical of summer markets. Great buying opportunity....perhaps not yet, but I'm not selling either. Thoughts?

[bulltradept] 11/7/2022 16:16

Most of the growth of this company came a couple of years a ago. One wonders if it's going back there given where we are now?

[death by donut] 11/7/2022 10:17

ps: I hold.DbD

[death by donut] 11/7/2022 10:17

Ok ta must be thinking of diffo stock , apologies , currently sat on a building site having a cuppa.DbD :-)

[ali47fish] 11/7/2022 10:07

the last update was very strong with one set of numbers to double with a tp in the 500

[death by donut] 11/7/2022 09:53

I think they'd already said that some months ago?I'd have to check back tho.DbD

[suetballs] 11/7/2022 09:45

I haven't sold any - but maybe wish I had.
I can't see much good news anywhere atm.
Suet

[ali47fish] 11/7/2022 09:31

the renowned tip sheet has indicated to take some profits -have people here followed suit or holing all their shares still

[gswredland] 07/7/2022 17:03

Me too John

[johndoe23] 07/7/2022 15:06

Support at 315 gone, surprised keeps dropping

[rivaldo] 21/6/2022 12:12

Cheers re the Master Investor write-up Tole (and no probs gswredland) - very bullish!

The rate of growth of new subscribers is terrific, with c7m now against 6.6m at the last 31st December year end.

As regards Singer's new note with the 500p target, here's their conclusion - they forecast 39.2c EPS this year rising to 44.6c EPS next year:

"Impact on earnings & valuation

Kape looks well placed to deliver against our organic growth forecasts of 10%-15% in FY’22e. The demand backdrop continues to look robust (subscribers: c7m; FY’21: 6.6m), whilst cross-sell of additional products into the Group’s subscriber base is also likely to be enhancing average revenue per user. With a scaled subscriber base and attractive operational gearing profile, particularly as the proportion of renewals increases versus new adds, we continue to forecast meaningful FCF progression in FY’22e. We project FY’22e FCF of >$130m (FY’21: $34m), supported by the acquisition of ExpressVPN, and equating to a 7.5% FCF yield. We reiterate our BUY recommendation, with a price target of 500p/share."

[gswredland] 20/6/2022 20:50

Thanks for the Slater podcast Rivaldo

[tole] 20/6/2022 18:56

https://masterinvestor.co.uk/equities/small-cap-round-up-purple-shirted-fairies-hackers-and-pvc/Kape Technologies (LON:KAPE) – a 'thundering' generatorThis company really is one of my 'ace picks' in the digital security and privacy software business sector.Last Thursday saw Don Elgie, the group's Chairman, tell shareholders that the group was proceeding well to plan so far in this current trading year.His AGM Statement covered the 2021 financial year as being 'transformational' with its sales up from €122.2m to €230.7m, while adjusted pre-tax profits were up nearly 142% at €72.8m (€30.1m), and earnings up 121% at 29.8c per share (13.5c).The biggie, of course, was the acquisition of ExpressVPN late in the year, the benefits of which will start to show through in the next few years as massive cross-selling gets underway.Elgie went on to say that:"Kape is a leader in the consumer security and privacy space, servicing some 7m paying subscribers worldwide and growing. We expect our strong customer growth to accelerate further as the privacy and security markets become more mainstream, with consumers increasingly viewing our products as critical components for their daily digital lives.Looking ahead, we are also focused on further leveraging our significant M&A experience and extended product pipeline to accelerate our market, product, and SaaS customer reach.Kape is now in prime position to lead the market given our current growth trajectory, and we look forward to expanding our footprint through organic growth and strategic acquisitions, as we have done consistently over recent years."This really is a 'classic' business that has massive upside.Analyst Caspar Erskine at Singer Capital Markets rates the shares as a 'buy' with a price objective of 500p per share.For the current year he sees revenues more than doubling to €618.5m, with profits more than doubling to €159.1m and earnings lifting to 39.2c per share.The coming year to end December 2023 shows his estimates at €690.7m sales and €181.7m of profits, with earnings of 44.6c per share.Despite having risen 36p to close at 364p on Friday night, I believe that this is a 'cheap' price.The group's cash generation and massive annual recurring revenues would make it an absolutely cracking takeover proposition for any aspiring private equity player on the global stage.I am very much more bullish than Erskine.The shares are totally undervalued – hold very tightly indeed.

[brad_k] 20/6/2022 16:15

US markets are closed today, it's Juneteenth! but I take your point.
Hope this rise holds a bit better than Fridays which seemed to drown in a sea of large after hours transactions.

[rivaldo] 20/6/2022 16:08

Which doesn't stop Americans buying over here :o))

[wynmck] 20/6/2022 16:05

U.S markets are closed today

[rivaldo] 20/6/2022 15:50

Another afternoon surge to follow Friday's. Simplistic I know, but perhaps this indicates American buying interest as their markets open.

[rivaldo] 19/6/2022 07:57

Great move on Friday. I agree that it's probably simply institutional reaction to the terrific prospects here and the encouraging AGM statement.

In addition (not posted here before), last Monday Mark Slater did a podcast and stated he'd been adding to his position in KAPE and outlined why - it's from around 23 minutes in here:

[techno20] 18/6/2022 16:38

Suspect it was just a delayed reaction to the upbeat AGM statement. Irrespective, nice to see something moving up!

[podgyted] 18/6/2022 16:33

???

Thought it might be Simon Thompson @ Investors Chronicle but can't find anything on the website.

6x normal volume - I'd speculate that something is happening but who knows.