Kape Technologies Share Discussion Threads

[malcolmmm] 28/5/2020 16:44

hopefully it will bounce to 220p soon as it seems to full back then bounce even higher

[johndoe23] 28/5/2020 16:00

Maybe Robbie Burns has bought back in here? Lot of buys this pm!

[johndoe23] 28/5/2020 14:40

Called it!

[basem1] 28/5/2020 12:54

She's turning now The ask is creeping up slowly

[basem1] 28/5/2020 12:16

There will be a quick turn to be made here for sure Perhaps a run to the 215p level when she does turn

[adamb1978] 28/5/2020 10:44

Agreed Rivaldo - use the weakness to top up rather than complain! I think this is a 2-3 year hold and there's a decent chance that the share price will be 2x-3x at the end of that period, or be acquired. On question about topping up is how greedy you are, and how low prices you look for....

[rivaldo] 28/5/2020 10:02

It's pretty obvious there's been a seller out there for a while - unsurprisingly given the share price rise!

The research Buy note and Simon Thompson's tip have taken the edge off the overhang, but evidently not cleared it yet. When it does - hopefully soon since volumes have been high - then KAPE can resume its progress.

In the meantime it's an opportunity to buy stock more easily assuming investors should be confident of growth given recent RNS updates.

[shaker44] 28/5/2020 00:53

Maybe it is but after the Arden and ST pieces I am surprised there are not more buyers than sellers for a few more days. Well, maybe there were but the sellers were bigger players....

[scottishfield] 27/5/2020 18:10

It's a volatile share, that's all. Goes with the territory.

[johndoe23] 27/5/2020 16:57

I just see it as profit taking after a 100% rise...

[fozzie] 27/5/2020 15:47

Very very disappointing to see us down in the 180's again, i think we hit 215 intraday just a short while ago. Two great notes from Arden and Mr Thompson have highlighted the opportunity but the market thinks otherwise. What price if we were listed on the Nasdaq Riv? a la Gan.

[rivaldo] 26/5/2020 11:27

Thanks to mick-b elsewhere for posting the full text of Simon Thompson's tip for KAPE...and here it is:

"Aim-traded shares in Kape Technologies (KAPE:208.5p), a provider of cyber security software, have smashed through my 200p target price after doubling in value since I last suggested buying, at 100p, two months ago (‘Three buying opportunities’, 18 March 2020). I first recommended buying, at 47.9p, in my 2017 Bargain Shares portfolio, so long-term holders have more than quadrupled their money. The re-rating is fully justified as this morning's trading update highlights.

Firstly, home working and remote working restrictions imposed on billions of people across the globe due to the Covid-19 pandemic has led to increased adoption of Kape’s cyber security software (which protects data security and privacy against piracy and phishing attacks). . Moreover, management report that demand for virtual private network (VPN) solutions that encrypt and secure internet connections has been rising notably in both North America and Europe, regions which account for almost three quarters of Kape’s annual revenue. Indeed, new monthly sign ups increased by 19 per cent last month within the digital privacy segment

Secondly, even before the lockdown restrictions, industry experts were predicting that the digital privacy market would grow by 50 per cent by 2022, thus providing a strong tailwind to Kape’s business. It’s a safe bet to assume that growth rates will be even higher now as hundreds of millions of internet users try to protect themselves from the marked increase in cyber and phishing attacks. The data security breach of 9m online customer accounts at budget airline EasyJet (EZJ) this week highlights the need for both companies and consumers to be extra vigilant.

Thirdly, there is scope for earnings upgrades driven by ongoing organic growth and by successfully marketing new products and cross selling existing ones to a significantly enlarged customer base following the acquisition of Colorado-based Private Internet Access, a leading provider of VPN solutions.

Fourthly, management reiterated guidance which points to underlying pre-tax profit trebling to $31.4m, and earnings per share (EPS) almost doubling to 13.4¢ (11p). Bumper operating cash flow should cut net borrowings by 38 per cent to $20m by year-end which means a higher level of economic interest in the company for shareholders. Kape has also completed a recent debt refinancing that has reduced interest charges in half.

Fifthly, the shares registered an important triple top chart break-out when they smashed through the 200p resistance level into blue sky territory. On a 2020 price/earnings (PE) ratio of 18.8, and with potential to deliver double-digit EPS growth in 2021 and beyond, I lift my target price to 275p. Buy."

[blackfinance] 25/5/2020 11:06

Thanks for posting the note Rivaldo.....very encouraging.

[rivaldo] 25/5/2020 09:46

Here's Ardens's summary FYI from their new Buy note with the 260p target:

"Kape Technologies
Buy
Target Price: 260p

AGM statement upbeat; co on track; Buy

We reiterate our Buy rating on signs of good progress in integrating PIA and solid growth in the group’s user base. Management’s AGM statement reiterated its prior guidance for the year (our forecasts are inline), albeit maintaining a close eye on market conditions given the progression of the COVID-19 pandemic. The group’s share price has risen 20% YTD and now trades on 16.6x FY20E P/E and 3.3x EV/sales. Our estimates are unchanged but we take the opportunity to up our TP to 260p (implying 4x FY20E EV/sales) from 208p, reflecting robust momentum within the group and highly supportive trading and capital market conditions.

Management’s commentary highlights good momentum in user growth of 19% YoY during April as the group has capitalised on strong underlying trading conditions. Traditional seasonality for VPN sales within the business is weighted to H2’20. Given the current scale of working from home practices across COVID-19 pandemic-impacted markets, we view user growth as well underpinned for the remainder of the year with the April figure demonstrating encouraging progress.

Management also reported that it remains confident on delivering the US$3.5m-US$4.5m of synergies from the integration of PIA, which continues to plan. The two groups’ server architecture (the backbone of its service delivery) is now complete, allowing an improved user service. Importantly, management highlights an encouraging uplift of new user growth rates since applying its user acquisition practices to PIA’s product suite.

The product roadmap continues to progress and the group highlights the implementation of its new encryption protocol (WireGuard) has accelerated the speed of its Digital Privacy (VPN) division solutions by 30% relative to its prior state. We are also particularly encouraged by good initial feedback from beta trials of a cross-platform feature aimed at improving retention. Within the Digital Security division, the group aims to launch endpoint security solutions for Windows, expanding on its MacOS products, in Q2’2020."

[qs99] 22/5/2020 15:47

Hey Riv, sorry mate, thought I was merely replying to other people's posts. Felt like a scolded school child haha.

Put repeats down to old age.

Good weekends all
Cheers
QS99

[shaker44] 22/5/2020 08:02

He certainly did sellout but it is said that his slate wasnt wiped clean in usa apparently for various reasons, which affect ptec still.I dont know and am repeating what I have seen as an explanation why ptec have not made the obvious move into usa. DYOR

[jbarcroftr] 22/5/2020 07:57

Tedi Sagi sold out of Playtec
All I meant was it pays to follow his lead

[shaker44] 22/5/2020 07:30

Thanks Rivaldo. I think their stake is now about 55% after the PIA buy but still large enough to be scary if Teddi decides to redeploy funds. Apart from that I agree it looks to be set fair.
And Barcroft I am glad you have done well following Teddi- many Playtech shareholders are less fortunate. His links are believed by many to be what has stopped PTEC from accessing the USA market like many competitors, who are riding the growing online gambling wave there.

[jbarcroftr] 22/5/2020 07:12

I have invested in a number of Tedi Sagi companies.They have done very well for me.It is certainly worth following his lead.

[rivaldo] 22/5/2020 06:49

Correct. KAPE (fromerly Crossrider) has been a listed company for years now so there's no lock-in. Obviously at some point they might take a little profit if cash needs were pressing, but given KAPE's stellar growth at present that would seem illogical!

[shaker44] 22/5/2020 04:38

Just looking at Kape after ST comments. Am I correct that about 70% is owned by Unikmind, under israelis incl. Teddy sagi of Playtech fame? If so is there a lock in or are they free to pump and dump,? Or just dump? Just asking...

[mrnumpty] 21/5/2020 16:25

Rivaldo . Thanks for keeping us up to date with the announcement just now by Simon Thompson , with his increased price target . I subscribe to Investors’ Chronicle , but hadn’t checked e-mails . I’ll be very glad if I appear a numpty with my suggestion earlier today that the share price might temporarily retrace a bit . If the price had fallen much , I would have increased my holding as I see this as a company at the right place at the right time . Good luck all .