Kape Technologies Share Discussion Threads

[dunns_river_falls] 26/1/2021 09:08

I was expecting some support around this level, after some resistance here in the last few months. Then maybe some round number support at 190, the 25sma is there also. 100sma which has just turned positive is around 177. News could be the catalyst.

[qs99] 26/1/2021 08:59

Where does chart show the support level is do you think, as a few profit takers may continue to make this drift for the moment?

[devilsprofessor] 25/1/2021 15:20

Great to see Simon Thompson's comments on KAPE. I agree with my fellow trader below regarding future acquisition. I have held this share prior to the Covid crash and topped up when it dipped. Happy to continue holding in a company I still review was strong worth plenty more to keep share holders happy.Naturally IMO and your own research is a must!

[rivaldo] 25/1/2021 12:44

Many thanks SEV22 re the ST tip.

The buying price has finally just moved up to 202.75p - hopefully an indication that the overhang is finally clearing.

[dunns_river_falls] 25/1/2021 12:21

Nice, thanks Sev. There is the potential major acquisition here, as well as a broker note.

[toptomcat] 25/1/2021 12:18

Awaken the beast

[johndoe23] 25/1/2021 12:14

275p target, if 225p can be surpassed..

[sev22] 25/1/2021 12:08

Just tipped by Simon Thompson, Investors Chronicle, at 12pm today.

Kape Technologies (KAPE:198p), a provider of cyber security software, has released a bullish pre-close update ahead of annual results on Wednesday, 17 March 2020.

It’s hardly surprising given that home working and remote working restrictions 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). Demand for virtual private network (VPN) solutions that encrypt and secure internet connections has been rising notably in both North America and Europe, regions that account for almost three-quarters of Kape’s annual revenue. Kape is also benefiting from the transformational acquisition of Colorado-based Private Internet Access (PIA) at the end of 2019.

These strong drivers have delivered full-year cash profit of $39m, well ahead of previous guidance ($35m-$38m), on 85 per cent higher revenue of $122m. Margins shot up from 22 to 32 per cent, helped in part by a 31 per cent reduction in PIA’s operating expenses. On this basis, analysts at Progressive Equity Research forecast a trebling of full-year pre-tax profit to $34.4m, EPS of 15.8¢ (11.6p), up from 6.4¢ in 2019, and closing net cash of $25.7m.

Furthermore, higher marketing activity in the final quarter of 2020 has laid the platform for accelerated organic growth in 2021. In addition, Kape has completed a cutting-edge infrastructure upgrade that has significantly cut costs as well as enhancing the customer experience for its 2.5m paying subscribers, a tenfold increase since I first advised buying the shares, at 47.9p, in my 2017 Bargain Shares portfolio.

Analysts forecast a further increase in cash profits to $41.5m in the current year, but I expect this to be easily beaten. However, even on this basis, the shares are not highly priced on an enterprise value to cash profit multiple of 13 times, one reason why they have made decent headway since I last suggested buying at 170p (‘Four tech companies with high growth potential’, 18 November 2020). I expect the positive share price momentum to be maintained. A chart breakout above last summer’s highs around 225p would signal that a share price move towards my 275p target price is under way. Buy.

[gleach23] 25/1/2021 12:07

SP suddenly firmed at midday on a Monday - ST update presumably? :)

Edit - thanks johndoe...you could be right after all mfhmfh. Hope so!

[johndoe23] 25/1/2021 12:07

Tipped by Simon Thompson of IC this lunchtime...

[gleach23] 25/1/2021 09:53

I'd be surprised mfhmfh...looks to me as though there's plenty of stock available to buy currently (around 60k shares)

[mfhmfh] 25/1/2021 09:24

210 finish today?

[gerihatrick] 24/1/2021 13:01

David..John09 has been the scourge of many company bbs. I have him on filter and he is best ignored imo.

[adamb1978] 24/1/2021 11:35

Finally got around to updating my figures after the trading statement last week. I tend to look for where I think the price can get in 2-3 years in order to inform my decisions, rather than trying to second guess short term fluctuations.

On that basis, with some assumptions around growth, margins, multiples etc, I get to a base case target price of c.310p and upside of 430p.

I think there this offers decent potential, with relatively limited downside. Its rarely traded below 15x so unless the business falls apart, I'm not sure there is much downside from here, and will look to add some more if Mr Market does have one of his tantrums

[davidosh] 23/1/2021 20:58

We make the tickets half price for those associated with the companies that are presenting and also any partners who help with the show. Each one takes a lot of hard work to arrange and put on but if you follow Mello you would know that.

[john09] 23/1/2021 20:53

Sounds like you have enough folks already without half pricing the tickets 👍🏼

Best of luck

[davidosh] 23/1/2021 20:28

John09.....you evidently have not been on one of our MM webinar as there were 528 that logged in to the last one....we have sold nearly 100 more tickets to this one and so I am certainly not dreaming. If you attend then you will see the webinar attendee counter very visible on the screen. We are totally open and transparent so I am not so sure why you are questioning it without ever attending one.

[davidosh] 23/1/2021 15:41

Just to let shareholders and prospective investors know that we will be featuring Kape Technologies in the #MelloMonday show on Monday evening in the MelloBASH (Buy, Avoid, Sell or Hold)session with four leading analysts and investors assessing the current investment case for each of the four companies to be covered. The panel this week will also be looking at Ultimate Products, Open Orphan and Twitter from a list of companies nominated.

We also have guest speaker Lord John Lee who writes regularly in the FT and has a session looking at takeovers and how investors miss out. Additionally there are three companies doing presentations so a chance to see HieQ who only listed three months ago and Tatton Asset Management plus a Game changer company that will be revealed on the night. Lots more sessions too and with 600 in the audience it will make for a great show with lots of Q&A and audience polls including one about KAPE so do not miss it.



Tickets are still available and if you would like one at half price then enter the code MMTADVFN50

[epicsurf] 22/1/2021 19:17

A US listing would certainly value kape on a higher multiple , certainly didnt hurt GAN when they made the move,hopefully another acquisition will be on the cards shortly

[achenaton] 22/1/2021 15:31

Interestingly, TRMR also appointed Stifel around three months ago.

[rivaldo] 22/1/2021 13:58

SCSW have just tweeted that a new research note is expected from newly appointed joint broker Stifel. Hopefully this should give the shares a boost - Stifel are one of the big boys.

Stifel are also one of the leading brokers in the USA for new IPOs etc. Is there a chance of a US listing for KAPE at some point I wonder?

[lsoc85] 22/1/2021 12:38

Other than the insightful comments of mrnumpty, I'm struggling to understand this (admittedly modest) drop in price. I've topped up today on the basis of the P/E ratio. It's currently running at 40 but when the results, the contents of which everyone already knows, are published, that ratio will drop to c.20. There's no divs so clearly it's a growth stock. Is the market expecting the P/E ratio to stay at 20? I can't see it! In the next 6-12 months it has to re-rate to at least 30, if not higher. Or am I seeing things that no one else is seeing?

[john09] 20/1/2021 10:53

I’m not sure the rise is finished though. It hasn’t actually receded on the update , it just succumbed to profit taking on the day and finished flat