Kape Technologies Share Discussion Threads

[volvo] 25/11/2020 15:47

What a great move.

Wheres shaker?

Smell a trading update and a deal.

[rivaldo] 25/11/2020 08:35

Nice early 2p move up on only 17k shares traded. Perhaps our sellers have finally left the building.

[nw99] 23/11/2020 12:40

Yes looking very solid

[rivaldo] 23/11/2020 11:43

Great rise on very healthy volumes, with almost 600,000 shares traded already today, enabling any sellers to have exited.

[mfhmfh] 23/11/2020 11:13

appears the downtrend is broken...

[volvo] 23/11/2020 10:47

...nice looking chart.

Maybe a trading update, CyberGhost and PIA appear to be trading well atm.

Maybe a little purchase too?

[gerihatrick] 23/11/2020 10:01

I spend a lot of money subscribing to newsletters so when people post material so soon after publication it undermines us subscribers, as well as being a breach of copyright. Please allow a reasonable period of time before making information available to non subscribers...I would have thought a week at a minimum and a month would be better!

[onjohn] 23/11/2020 08:27

Rocket pic needed to 230p

[suetballs] 23/11/2020 08:25

Heading north this am.
Tips doing the trick.
Suet

[harrywilliam] 21/11/2020 16:10

Topped up my holding this week. The chart direction has certainly changed upwards. May take a few more next week

[johndoe23] 21/11/2020 16:04

Thanks for that info!

[dicktrade] 21/11/2020 15:52

Strong buy recommendation inSCSW latest mag

[rivaldo] 20/11/2020 08:45

For the record, here's Simon Thompson's tip from yesterday:

"Kape poised for re-rating

■ Oversubscribed placing and retail offer raises US$115m.

■ Trading update at upper end of earnings guidance.

Kape Technologies (KAPE:170p), a provider of cyber security software, has successfully raised US$115m (£88m) in an oversubscribed placing and retail offer at 150p. The company has used US$72.5m of the proceeds to buy out the two major vendors of Colorado-based Private Internet Access (PIA), the transformational acquisition Kape completed at the end of 2019. On completion of the deal, Kape paid US$85m of the US$162m consideration in cash and issued 10.5m shares to the vendors. The company was then scheduled to settle 21m of the 28m deferred share element next month.

So, to avoid a stock overhang, Kape has bought back the 10.5m shares issued and has made a cash payment to settle the deferred share element rather than issuing further shares to PIA’s vendors. There is an also additional tax-related cash benefit of US$50m over 15 years available to Kape following the change to the PIA deal structure. The remaining US$43.5m proceeds wipes out Kape’s net debt of US$25.6m and means the company is well funded to continue making selective earnings accretive acquisitions.

Kape also revealed in a brief trading update that user growth in its Privacy division hit a run rate of 14 per cent annual growth during the third quarter, and customer retention rates remain strong. The board is maintaining guidance of annual revenue of between US$120m-$123m and cash profit of US$35m-$38m. On this basis, analysts at Progressive Equity Research are pencilling in full-year adjusted pre-tax profit of US$30.9m and EPS of 14.2¢, rising to US$36.4m and 15.8¢, respectively, in 2021. Closing net cash improves to US$22m and US$31m, respectively, implying the shares are rated on a cash-adjusted PE ratio of 13 for the 2021 financial year, a low rating for a company operating in a high growth industry.

Kape’s shares are showing a healthy 256 per cent paper profit on the entry level in my 2017 Bargain Shares portfolio, albeit the price is well shy of the summer highs around 230p. However, with the potential stock overhang cleared, and the shares rated on an unwarranted three point discount to larger rival Avast (AVST), I can see scope for a much higher rating. From a technical perspective, look for a chart break-out above 180p. Buy."

[gadolinium64] 20/11/2020 01:11

Lsoc85: I wouldn't call them cowboys; opportunists, perhaps. In their previous incarnation as Crossrider they appear to have dealt in security software that some would classify as adware, but as Kape they are aiming for more mainstream legitimacy, acquiring VPN brands with an established user-base.

VPNs are increasingly popular, so there's definitely room for growth there. The only concern I have is that many people use VPNs for legally dubious activities (e.g. bypassing regional restrictions on streamed content), which means they could attract unwanted attention from regulators/big media companies if they became *too* popular.

As for the valuation, it's possible that they're using accounting trickery to make the company seem more profitable than it is, but then I doubt billionaire Teddy Sagi owns 65% of the shares out of the kindness of his heart.

[gleach23] 19/11/2020 20:42

shaker44...is KAPE a share you just can't shake off or something? :))

[shaker44] 19/11/2020 19:54

Lssoc85. An honest opinion? Depends who you ask. You can draw your own conclusions from the article you linked too surely?
But even if you are comfortable with the 'ethics' you really think it's a multi-bagger??!! Evidently you are not a fan of momentum investing then. Not cheap yet in my view but some on here are VERY enthusiastic.

[lsoc85] 19/11/2020 19:33

Been doing some reading around this Company. I like the financials and growth opportunities. The PIA acquisition looks a good one and the management's words are all very positive. In sum, it looks cheap, a potential multi-bagger if you will. Which made me wonder why it's cheap.

Was ready to push the button but this article stopped me in my tracks:

Can anyone on here give me an honest opinion? Are these guys cowboys or what? Be nice to hear from shorters as well as longers, there must be plenty of both given the medium term share price 👍 cheers

[limay] 19/11/2020 17:25

Great business tins of revenue no profit directors like trading it though

[volvo] 19/11/2020 17:09

Oh shaker, simmer.

Still doing the business I understand.

Pounds shillings and pence old chap

[buying] 19/11/2020 13:19

ST has tipped it as a buy today

[shaker44] 19/11/2020 13:15

No new news in ST comments. Market reacted accordingly. Down

[gleach23] 19/11/2020 12:06

Guessing there's just been a Simon Thompson tip?