Kape Technologies Share Discussion Threads

[mfhmfh] 20/3/2019 16:25

all trades showing as sells today for some reason

[gswredland] 20/3/2019 16:18

Thanks mfhmfh

[dave2608] 20/3/2019 12:47

Positives:

1. In 2019's y/e figures there were only two full month's worth of ZenMate's revenues. In 2020 there will be twelve.

2. In 2019's y/e figures there were five full month's worth of Intego's revenues. In 2020 there will be twelve.

3. Growth of 219% in subscriptions to 830,000 (2017: 260,000).

4. Divestment of Kape's Media division, announced in July 2018, to Ecom Online Ltd. As consideration, Kape will receive a 50% share of EBITDA from the Media division for the next five years following the sale. Yes 50% of EBITDA for something they no longer own!


I'm brainstorming here, so hear me out. Subscriptions 830,000. Let's say that quickly becomes 1 million. £10 net profit on every subscriber equals £10 million net profit. Is that an unrealistic figure? Maybe with organic growth and acquisitions the number of subscribers reaches 2 million. Let's dare to say £15 net profit per subscriber. That's £30 million net profit. Like I say I'm just brainstorming.

[mfhmfh] 20/3/2019 12:10

very positive write-up by ST in IC today.

From ST today:

' I understand that the directors are looking to make a potentially large earnings-enhancing acquisition, thus providing scope for further earnings upgrades. Buy.'

[sailorsam1] 19/3/2019 15:01

Look good to me and topped up :-)

[suetballs] 19/3/2019 13:58

Had a small top up today. Didn't do well will soph but well up on my holding in the ETF ispy.
Suet

[igoe104] 19/3/2019 13:28

NOTE, Progressive research.

Kape has reported FY 2018 results in line with its January trading update with strong EBITDA growth to $10.4 million. The numbers are reported on a continuing business basis following disposals which leave the Group’s App Distribution segment as its sole focus. Kape has now completed its transformation into a privacy-led cybersecurity software provider. The acquisitions of Intego and ZenMate were concluded during the year; both are now integrated into the Group and expected to contribute to revenue growth and profitability in the coming year. The number of subscription users rose by 219% to around 830,000 while the customer retention rate improved to 74%. The numbers of paying users and subscriptions show the growth the customer base and the associated retention rate provides an indication of how well Kape is maintaining its quality of service and products. With Adjusted EBITDA in FY 2018 in line within expectations, we leave our estimates for FY 2019E all but unchanged and introduce estimates for FY 2020E which reflect assumptions of further strong user acquisition and an increase in recurring revenu

[dround87] 19/3/2019 13:22

Alliance news struggling to pick holes. Got to say this is one of the more perplexing ones. Holding on for the ride. It'll come good eventually.

[mrnumpty] 19/3/2019 10:01

Perhaps Investors' Chronicle will enlighten its subscribers with an e-mail later today . Another tip sheet which is a fan of Kape is Small Company Share Watch . SCSW added 10,000 Kape shares to its Growth Portfolio 3 ( GP3 ) at 93.5p on 9/4/2018 . Although the share price has barely moved , at the moment , since then , inclusion in GP3 provides me with some confidence . Having started in August 2015 , GP3 constitutes the highest conviction ideas of SCSW , and currently only holds sixteen shares ( though some will have been sold since inception ) . For reference , GP1 ( 1/11/1994 - 12/7/2001 ) gained 1088.57% , and GP2 ( 13/1/2001 - 28/11/2014 ) gained 1207.29% , though not doubt weaker shares were culled along the way in these portfolios . There will no doubt be commentary in the next SCSW , but it doesn't read subscribers until 6th April .

[dround87] 19/3/2019 09:56

I've learnt some lessons about topping up on results day these past months. Sticking my fingers in my ears and shouting loudly instead.

[hiraniha] 19/3/2019 09:50

I topped up again.

Now holding 20k shares at average 99 pence.

I'm happy for the market to wake up and smell the coffee on this one.

[gymratt] 19/3/2019 09:25

Bought some more. True value will out in the end...

[blackfinance] 19/3/2019 09:23

dround87 - I know the feeling! The share price of my holdings seems utterly divorced from results, it really does not seem to matter what they are, it will go down on results day no matter what.

[mrnumpty] 19/3/2019 09:22

Reply to my own earlier query : Unikmind Holdings is an investment vehicle owned by Teddy Sagi who is , according to Wikipedia , " ranked 6th on Forbes Richest Israeli People " . Nonetheless , does anyone have information on other directors' holdings ?

[hiraniha] 19/3/2019 09:22

Why is this down 6%?

[oracle60] 19/3/2019 09:22

Unikmind Holdings appear to be a Trust, controlled by Teddy Sagi.

[dround87] 19/3/2019 09:01

2019 strikes again. Just going to Bury my head in the sand!

[mrnumpty] 19/3/2019 08:56

According to the Company's website , three holders own 82.42% of the shares of Kape : Unikmind Holdings = 72.77% ; Miton Group = 6.38% ; Legal and General = 3,27% . That leaves a mere 17.58% ( = £ 25.71M at the current market cap of £ 146.27M ) for everyone else , which hopefully also includes directors' holdings and any unreported ( < 3% ) holdings by other institutions . So , with such a small free float , the share price is likely to be subject to more movement than a company with a higher free float . By the way , does anyone have information regarding who Unikmind are , and regarding directors' holdings ?

[podgyted] 19/3/2019 08:33

Progressive have put forward a 2020 forecast of Revenue $88m, Adj EBITDA $18.4 and Adj EPS of 9.8c - excluding any further acquisitions. That gives a PER of @ 13.

[gswredland] 19/3/2019 08:26

Yep looking good

[rivaldo] 19/3/2019 07:51

Does indeed look good, with EBITDA slightly ahead of expectations.

I love the 53% of recurring revenues (up from just 19%!).

Acquisitions have been integrated well, more will be in the pipeline and there's confidence going forward. Plus the small matter of a $40.4m cash pile.

[podgyted] 19/3/2019 07:39

Key comment:-

"The board remains confident in delivering year-on-year growth in 2019, in-line with market expectations."

[hiraniha] 19/3/2019 07:27

To be honest, not too bothered about the dividend. Just want them using the money wisely, which they appear to be.

[suetballs] 19/3/2019 07:23

No dividend?
Suet

[ayl30] 19/3/2019 07:20

Results read well