Kape Technologies Share Discussion Threads

[rivaldo] 14/8/2020 07:12

The H1 results will be out on 15th September - of course we already know from the trading update that the numbers and the outlook will both be good:

[rivaldo] 10/8/2020 09:09

Good to be back up to 200p today.

The share price has been consolidating at these levels for a little while, which is natural after such a dramatic rise. But I agree with AdamB1978 - assuming KAPE once again confirm a good H1 and rosy prospects going forward then there's plenty of upside left here given the discount to sector comparators at the current rating.

[adamb1978] 06/8/2020 10:54

I'm not sure why people have concern about management giving extra guidance. They've given guidance for 2020 - how many companies, particularly small ones, are giving guidance for 2021 yet?!? Very few to none.

KAPE gave guidance for 2020 at the start of this year, which they've since confirmed at least twice. If you want to think through valuation impact of that, you would probably have applied a certain % discount to those figures at the start of year given that realising those figures was further off, however every time management confirm them and give figures which support them, then that discount should reduce. Therefore the valuation which those figures imply should by definition increase as we move through the year.

Secondly, the recent trading update said that they were growing 12% on a proforma basis. That is new information. You can therefore think through what you think a software business which is growing at 10%-15% and making 30% margins is worth. In my view, its worth a lot more than the current price given the cash generation and how much the increased sales falls through to the bottom line

[volvo] 06/8/2020 10:45

Lets just hope that the management have left a few extra crumbs up their sleeves with regard to forecast turnover/profit come the results in a months time...personally I recon that is the way they roll. Time will tell.

[basem1] 03/8/2020 13:00

They keep recycling the same numbers over and over. Until there's a further upgrade the market is finding value between 190 and 230p An earnings upgrade is what's required

[adamb1978] 03/8/2020 12:08

Price is off a little but FTSE has also come off and this isn't a large company so price can move based on relatively low volumes.

I've actually been pleasantly surprised that an opportunistic limit order which I set a few weeks ago has been triggered this morning so I've topped up!

[johndoe23] 03/8/2020 12:06

Nothing from ST

[recut more] 03/8/2020 11:51

Its so frustrating, why they are dropping off I don't know, brilliant results, unaffected by Covid, and the price drops, what is it the market doesn't like?
Have Techinvest or ST mentioned them?

[shaker44] 03/8/2020 11:50

Still feel institutions don't like or trust the ownership and until they do-or it changes this isn't going anywhere in my view. Good luck all. I am out

[suetballs] 03/8/2020 11:33

Not quite a faang stock.
I thought it would push on from £2.
Suet

[ali47fish] 03/8/2020 11:28

well what have techinvest and st said?

[johndoe23] 29/7/2020 21:01

Surely ST will cover this Monday!!

[gerihatrick] 29/7/2020 20:32

And don't forget Techinvest is also due for publication on August 1st. I would be surprised if TI did not comment.

[johndoe23] 25/7/2020 18:36

I expect kape to be covered on Monday by ST. He seems to do all of his tips now for the week on a Monday. Should be a fantastic write up!!

[rivaldo] 24/7/2020 12:28

Arden have retained their Buy, with a 260p target price, and comment as follows:

"Kape Technologies
Trading update: on track; Reiterate Buy rating

We reiterate our Buy rating on Kape post an inline trading update published this morning. Trading during the first half has been inline with management expectations (revenues almost doubling YoY) and reflects the groups consolidation of PIA underpinned by double digit organic growth. Management reported that end-market demand remains robust givenusers’ requirements for privacy and increased remote working. Kape’s implied revenue run-rate appears consistent with our FY20E expectations, which are within the range of management guidance for the year. We remain comfortable with our current estimates. Our target price of 260p continues to imply upside potential.

First half revenues (December year-end) are expected to come in at c.US$59m (+97% YoY, 15% organic) with EBITDA of c.US$16.1m, indicating a 27.3% margin. EBITDA rose 180% year on YoY, reflecting a combination of operational leverage of the consolidated group plus partial delivery on synergies. We note that recurring revenues represent c.90% of total revenues, which coupled with the multiyear average lifetime of a customer, presents strong forward visibility.

The integration of PIA has advanced faster than management’s original expectations which we believe is an encouraging indicator of how quickly synergies will be delivered. Management has retained its previously stated target of US$3.5m-US$4.5m;we already anticipate the close to the top-end in our forecasts.

Kape’s shares are up over 12% YTD and trade on 18.4x FY20E P/E and 3.0x EV/sales.
In our view, this is not particularly demanding given the group’s revenue visibility, profitability, organic growth prospects and future M&A optionality. Our target price of 260p is unchanged."

[rivaldo] 22/7/2020 08:14

Nice £13k buy first thing today at 223.5p - a full 1.5p above the 222p published offer price.

[volvo] 21/7/2020 21:14

Talk of a Nasdaq listing has always been there

[saucepan] 21/7/2020 17:28

Interceptor2 and Blackfinance: thanks :-)

[blackfinance] 21/7/2020 16:39

Saucepan - I welcome your comment about Kape's past. Views, positive, negative and questioning of the company always welcome here.

[rivaldo] 21/7/2020 14:41

Moving up again. I agree with the earlier comment that if KAPE were trading on an American exchange it would probably be trading at double the current rating.

Can't remember offhand if the CEO or anyone else have ever mooted dual-listing KAPE in the USA?

[interceptor2] 21/7/2020 14:29

Appreciate Saucepan asking the question about a concern when called Crosswire Group, that is what these forums are for with where investors can give knowledge to others.

I also bought in here this morning after a very solid update and a company in the right sector at this time.