Kape Technologies Share Discussion Threads

[shaker44] 18/11/2020 11:50

You are right. Overseas acquisitions in particular. Even very detailed due diligence doesn't avoid having the wool pulled over your eyes. Better to try and do a 3 year earn out and keep the key executives locked in.

[dozey3] 18/11/2020 10:44

Over a considerable period of time I have encountered many CEs who have, through acquisitions, magically produced black holes in balance sheets, but none who has magicked a rabbit out of a hat. Perhaps this one is different.

[rivaldo] 18/11/2020 10:19

SCSW updated on its KAPE tip in the October issue as follows FYI:



"Kape
166.5p Epic code: KAPE

(Sharewatch) Kape’s H1 shows sales increased 97% to US$59m. Adjusted EBITDA increased by 185% (22% on a proforma basis) to US$16.4m while the adjusted EBITDA margin increased to 27.8% (H1 2019: 19.2%). Adjusted EBITDA margins improved by 8.6% to 27.8% as the benefits of operational gearing kicked in.

Subscriber numbers increased to 2.38m. Overall, Kape invested US$29.2m cash into direct marketing (US$11m more than last year) so the benefit of this comes next year. Kape ended the half year with US$25.6m net debt.

Digital Privacy, which comprises three VPN brands (CyberGhost, PIA, ZenMate), saw revenues balloon by 277% to US$24.6m (78% of total). The period, of course, includes PIA for the first time and this contributed US$24.3m to sales so organic growth in the Digital Privacy segment excluding PIA was up 47% to US$17.9m. Having virtually doubled its VPN user base last year, this was mostly down to a full year contribution from last year’s additions rather than picking up new customers.
Speaking to CEO Ido Erlichman, he also adds that the period saw the launch of a new product, the CyberGhost 8 Privacy Suite, which gave things a lift. This is a comprehensive security suite and 25% of users wanting VPN opt for it. Rather than just being an upsell, Erlichman notes that it also boosts lifetime values and reduces churn. With Kape therefore increasingly throwing its marketing dollar at growing VPN sales over security product sales, the Digital Security segment fell 5% to US$16.7m.

The integration of PIA continues apace and Q3 synergies will climb towards the upper end of the US$3.5-4.5m expectation, driven by cost reductions from the consolidation of servers and offshoring its support from Denver to the existing centre in Manilla.

Increasingly end-users working from home are turning to VPN for secure search capabilities and the market is expected to grow from US$25bn in 2019 to reach US$70bn in 2026.

N+1 Singer forecasts eps of 13.3 cents for the full year with 14.9 next year but could rise as Erlichman says the pipeline for M&A is healthy. I think he might magic a rabbit out of the hat soon enough."

[shaker44] 16/11/2020 16:52

He is panicking about his losses. You can tell

[wynmck] 16/11/2020 16:43

you've been expecting a trading update for some time now volvo
let it go
watch a kettle never boils

[volvo] 16/11/2020 16:26

Hopefully, maybe a trading update, which will be announced with the new purchase. Trading looking strong in the US as people try to hide on the internet (PIA) and Cyberghost are doing the numbers.

[rivaldo] 16/11/2020 16:04

Another late surge coming?

[gleach23] 16/11/2020 10:01

Majority of trades reported as buys this morning have been sells but into a Bid price that's been creeping up. Now only 10 shares available to buy online so would expect a further move up today.

[rivaldo] 15/11/2020 08:18

Nice positive intra-day turn at the close on Friday, partly caused by a decent 35,000 share buy at the full 175p offer.

Hopefully this week will see a continuation of the re-rating.

[volvo] 14/11/2020 18:39

Ahh shaker how are you, hope your keeping well.

Time will tell how much is ramp and how much is fact.

Roll on next week :)

[shaker44] 14/11/2020 00:41

Volvo drives up the ramp.

Don't guess, take a leveraged spread bet-if you dare.
Ridiculous

[volvo] 13/11/2020 18:57

yes get a feeling that current trading is strong, and new buy out is upon us....220p next week is my guess.

[gleach23] 13/11/2020 17:35

35k @ 175p reported after the bell to round off a long overdue good week

[esther1975] 13/11/2020 13:06

Nice 100000 delayed buy at 164 gone through. Someone is keen!

[podgyted] 12/11/2020 23:19

Don't want a bid now - wait until the underlying profits take the share price somewhat higher.

[johndoe23] 12/11/2020 22:55

Could be. Another big acquisition perhaps?Or news of a bid?

[boozey] 12/11/2020 22:39

Announcement in the morning?

[shanksaj] 12/11/2020 17:30

For a couple of weeks the markets will not worry about anything much... but two things are coming in early January: the 2 seat Senate election in Georgia (5th January) which will decide who controls the Senate, and the coming No Deal Brexit (1st Jan).

If the Democrats win the 2 seats in Georgia then the Senate will be 50-50 and the vice-president Democrat Harris will have the casting vote, and so tax rises, more lock downs, a slowdown in fracking, more money thrown at preventing "man-made climate change", and a trashing of the Supreme Court and consequently also of the US Constitutional System will be on the cards.

Expect more aggression from China, including military, once they've sussed Biden out, especially viz their prime target.. Taiwan. Fears of a big war with China will grow during next 2 or 3 years. The fears are fully justified. The Chinese Communist Party probably want Taiwan sorted before the next US election.

On Brexit, the negotiations are just playacting on the part of the EU.. a "No deal" Brexit is coming... it always was unless the UK was prepared to swallow whatever was on offer... the UK gov isn't prepared for that so "no deal" is certain... the EU couldn't arrange any trade deal within a minimum of 5 years and probably won't within 5 years with the UK either. The only difference is the German car makers are going to go ballistic with their government for not putting pressure to get a deal: "I thought we Germans ran Europe!"

The UK gov might not put a tariff on car imports from the EU, I don't know what the rules are, but if our cars cannot get into the EU without a tariff then expect a tariff on EU car imports to UK.. and the UK car makers win because a fall in sterling because of No Deal will compensate the tariff on UK exports but will make a double wammy on German car imports into UK.

I've gone short on sterling. Buy stocks of companies which are big exporters.

On top of all this a vaccine is getting v close. Amazingly volatile times.

[qs99] 12/11/2020 15:49

Back above £2 me thinks by early next week

[andyview] 12/11/2020 15:42

wow, good day indeed

[jltaylor1001] 12/11/2020 15:41

What's the news ?? Looks to have a long way to go surely . Simon Thompson target 280p short term

[volvo] 12/11/2020 15:35

rivaldo sure is giving it abit today.....deal soon and revised trading update 220p imo.

[rivaldo] 12/11/2020 15:20

...and thar she blows :o))