Kape Technologies Share Discussion Threads

[gswredland] 15/1/2019 07:22

Yes Dround I’m continuing to hold

[ayl30] 15/1/2019 07:20

Positive update today. Like the bit about exceeding forecasts and seeing growth continuing

[dround87] 15/1/2019 07:20

Strong update. Nothing in there to worry me. Should move nicely today. Hope our glorious leaders don't cast too dark a cloud on proceedings.

[paleje] 14/1/2019 11:49

Was looking these over after a decent write-up by ST last month but Teddy Sagi controlling interest is a bit of an off-put. I got caught out on one of his gambling cos quite a while back, haven't bought might regret it, GL anyway.

[ali47fish] 13/1/2019 12:18

company wont say- last year was 16th

[gswredland] 12/1/2019 09:04

Anyone know when trading up date is due please? I have it as Tuesday 15th but may be wrong

[mfhmfh] 10/1/2019 14:19

nice steady rises. hopefully share price can break past this mini-resistance and move on to 120p.

[makingmillions] 07/1/2019 13:40

Think 50000 was probably a sell. If not I think price would have moved more. Anyway whatever it is it's done now.Onward and upward please.

[mfhmfh] 07/1/2019 13:26

good volume with solid buys going through today. only 1 sell today from what I can tell.

[mfhmfh] 04/1/2019 09:40

buys continuing to come in today.

trading update was on 16th January last year.

[dround87] 03/1/2019 15:43

I'm overjoyed to be wrong! All my small caps are bouncing today. Great to see. Glad I didn't get stopped.

[tallprawn] 03/1/2019 15:33

Looks like momentum is building a run back up and above a quid - About time this bounced. Quality underlying business being built here. Next update should show string financials for the recently acquired add-on's.

[dround87] 24/12/2018 08:21

Stop set at 90. Not relying on the strength of the underlying business right now as far as share price is concerned. Once a slide starts in the current climate it can be difficult to stop. Check OPM for a case study. They released incredible results in October tripling their profits with a feature in the IC about how they were poised to benifit from any brexit scenario. The share price was 79 back then. It's 39 now. Watch out.

[dround87] 21/12/2018 16:39

I hope so. Too many good stocks stuck in the doldrums at the moment.

[tallprawn] 21/12/2018 16:35

Looks to me that it was just momentum driven - A small number of sells create a panic in weak holders and MM's go afters few stop losses on a quiet Friday pm.This will be a back over a quid again very soon - Nothing wrong with the underlying business imo. A few canny buys sneaking in just before the bell - I suspect they got a bargain and this will bounce back quickly from here.

[dround87] 21/12/2018 16:32

Stunned! Can't believe where this is at right now. Any clues about what's happening?

[rivaldo] 19/12/2018 06:43

Good to see an experienced investor like David Kempton buying in to KAPE:



"Kape Technologies (KAPE) looks to be the most attractive of the cyber security companies. Last summer’s clever acquisition of Intego is trading ahead of expectations and the shares are trading on 26 times 2018 earnings, falling to a projected 18.4 times next year’s earnings, on a PEG ratio of 0.4 times. With £69 million in cash, the shares look good value in a fast growing sector with skilful ambitious management."

[gorilla36] 14/12/2018 11:37

If you are a fan of his, Robbie Burns the Naked Trader is in at 97p.

[gswredland] 05/12/2018 16:42

Thanks Ayl30
Good to see!

[rivaldo] 05/12/2018 08:24

Thanks for the IC tip Ayl30.

Apparently at Mello London there was a specific positive mention for KAPE from Miton's stock market guru Gervais Williams, as an "agile, well-financed" cyber-security company" (nice coverage of VLE here too, which I also hold):

[mrnumpty] 03/12/2018 16:16

According to Kape's own web site , 83.56% of the shares are held by the three largest holders ( Unikmind = 72.77 % ; Miton Group = 6.95 % ; Legal and General = 3.84 % ) . Thus even if all of the remaining 16.44 % of shares are available on the open market ( highly unlikely , but I don't know what the holdings of directors or other institutions are ) , then this free float would equate to a mere £ 24.99 M ( 16.44 % X £ 151.46 ( market cap , at a price of £ 1.05 / £ 1.08 ) . The shares of companies with such a small free float are prone to being volatile . Indeed , the past couple of months have proven the truth of Old Mr. Numpty's First Rule of Investing , which is that , if an investment can be wrecked by politicians , then they can be counted on to do so ! Nonetheless , I remain a long-term investor and see great possibilities here , but DO YOUR OWN RESEARCH .

[ayl30] 03/12/2018 12:48

ST in IC has tipped this am as follows

The technology sector rout has led to an unwarranted pull-back in the Aim-traded shares of Kape Technologies (KAPE:105p), a provider of cyber security software. It’s in no way a reflection of the operational progress being made by the company.

Indeed, a trading update has revealed that last summer’s acquisition of Intego, a Mac and iOS cybersecurity and malware protection software-as-a-service (SaaS) business, is progressing ahead of management’s expectations. Intego’s purchase price of $16m equated to a sensible looking 11 times its 2017 pre-tax profit of $1.4m. However, if Kape’s management works its magic as it has so far with its March 2017 acquisition of CyberGhost, a provider of secure virtual private networks (VPNs) that securely pass data traffic over public networks, then there could be significant potential to grow Intego’s profits by leveraging off Kape’s larger customer base.

Bearing this in mind, the directors have revealed that the “implementation of Kape's user acquisition technology with Intego has been extremely encouraging and will have a positive impact from the first quarter of 2019. In addition, Kape has recently launched cross-promotion campaigns between CyberGhost's VPN and Intego's malware protection software, and there are early signs of strong traction across these products”.

This autumn’s acquisition of Berlin-based ZenMate, a digital privacy company focused on encrypting and securing internet connections and protecting individuals' privacy and digital data through VPNs, is performing ahead of expectations too. The previously lossmaking business should turn cash profitable from the first quarter of next year, which is supportive of analysts’ predictions that ZenMate could report cash profits of $500,000 on revenues of $2.5m in 2019, thus warranting the €4.8m (£4.2m) cash consideration Kape paid. It’s also supportive of forecasts that Kape can boost pre-tax profits from $8.7m in 2018 to $12.3m on revenues of $72m in 2019.

On this basis, Kape’s shares are rated on a cash-adjusted PE ratio of 14.5 for 2019, hardly a punchy rating for a company that is successfully recycling its cash pile – I estimate net funds of around $41m, or 22p a share, post the ZenMate and Intego acquisitions – into high-growth cyber security markets and successfully creating cross-selling opportunities across its entire product range for its 1m customers in 160 countries. Retention rates are high at 74 per cent, and rising, suggesting Kape’s income stream is becoming more valuable too.

So, having first advised buying Kape’s shares, at 47.9p in my 2017 Bargain Shares portfolio, and last reiterated that advice at 120p when the ZenMate acquisition was announced (‘Kape’s growth underpriced’, 18 October 2018), I note that the oversold shares have drifted back to support around the 100p level and look primed for a rally. Buy.

[rivaldo] 28/11/2018 14:14

Edison's latest note out today forecasts 7.3c EPS next year, i.e around 5.7p EPS.

If you strip out the $46.2m (£36m) cash pile out of the £146m m/cap, that's a P/E of only 13.5 for the year about to start.

Pretty decent value for a cybersecurity company:

[igoe104] 27/11/2018 07:43

The S/p has fallen nearly 30% over the couple month, and even with a solid statement, the shares only moved up 3%. shocking markets at the moment.

[rimau1] 26/11/2018 08:33

I thought this might have bounced much higher with the integration of all acquisitions is ahead of expectations. Signals to me we will smash our 2019 forecasts, I must be the only one to have topped up today!