Kape Technologies Share Discussion Threads

[albanyvillas] 11/2/2021 10:14

Projections indicate that 166.7% more professionals may continue to work exclusively from home after the pandemic than beforehand
Google search volume for search terms "house in the country" reaches all-time high

[ayl30] 10/2/2021 17:20

A month to results, let's see if the price starts to build in anticipation

[rivaldo] 09/2/2021 08:58

Good to see buying now at the full 205p offer.

[davr0s] 08/2/2021 19:27

No that's institutional trades

[sphere25] 08/2/2021 16:17

Are those two large prints off the back of ST? ST sure has some clout. Key marks are the natural psychological 200p and then 205p. Those are standout buys but is it enough to break the key levels?


All imo
DYOR

[death by donut] 08/2/2021 16:15

Would be nice.

[euromedic] 08/2/2021 16:04

Maybe deal
Coming

[death by donut] 08/2/2021 16:02

3mil vol at 200p+Ve ?DbD

[dr know] 05/2/2021 13:48

That article was published on 25th January.

[igoe104] 05/2/2021 09:31

Cheers Gg, Should see some go continued buying as the day goes on.

[ggbarabajagal] 05/2/2021 08:38

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 potentialâ€482;, 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.
mfhmfh - 22 Dec 2020 - 10:22:35 - 2268 of 2397 KAPE TECHNOLOGIES: cybersecurity for consumers - KAPE
nice start this morning.

ST's last target price was 275p.
ONJohn - 29 Oct 2020 - 08:05:20 - 2137 of 2397 KAPE TECHNOLOGIES: cybersecurity for consumers - KAPE
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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.

[devilsprofessor] 04/2/2021 11:43

Nice big buy this morning.I too have topped up (my third top up in as many months) as I can see this stabilising around 205p at least when the results are out next months.IMO of course and following my own research.

[robsy2] 26/1/2021 15:16

I sold out this morning. I have had a good run here and prefer to have a bit more cash . Good luck to all who remain.

[t0pgrader] 26/1/2021 14:38

Capitalising b2c customer acquisition spend is mischievous and dangerous given the declining value of contracts across the industry and Kape's high customer churn %. How long before prior year accounts will have to be restated to correct over-capitalisation resulting in lower margins and reduced earnings? Definite red flag. I was looking to possibly buy back in but not now. Goodbye Kape, I loved you once.

[shaker44] 26/1/2021 13:33

Leach: no waiting here! Busy making money elsewhere in the markets. Just keep an occasional eye on Kape. Not unusually ST overstates the upside imo. He has some good tips and quite a few not so good. Followed him for years and learned to filter his ideas

[dunns_river_falls] 26/1/2021 13:13

Cyber ghost £1.99 per month / 3 year contract with 3 months free. Good value.

[gleach23] 26/1/2021 12:48

Finally...shaker44 emerges...it must have been a long couple of weeks waiting for a pullback!

[shaker44] 26/1/2021 12:21

Surely no one pays usd85 a year for a Vpn? My PIA is less than half that annually.
Writing off acquisition costs over 22 months forward is a touch creative.
Maybe if they took it on the chin they would make more effort to Improve retention rates

[rivaldo] 26/1/2021 11:39

Bostonborn, KAPE spends heavily on upfront marketing investment to gather up new customers - but this is amply rewarded when the automatic renewals kick in every subsequent year with terrific cash flows.

To quote SCSW:

KAPE "might spend US$100 to get a new customer but only recoups US$85 in the first year, which depresses year one profit. Kape capitalises part of the cost and writes it off over 22 months so cash lags profits a little."

And remember that with the relatively recent and large PIA acquisition "there is no such associated cost of acquisition as there is no advertising spend, so everything drops to the bottom line quickly."

[dunns_river_falls] 26/1/2021 11:24

Mello apparently had similar negative views on Orph as well. They sound like a bunch of hindsight merchants who haven't done due diligence. Net increase of half a million customers here in 6 months. Huge revenue growth and an acquisition to come. Think mello can do one.

[john09] 26/1/2021 11:15

Ah the Mello boy. He was very passive aggressive when he posted here begging for his 12 quid to come and watch lol

[bostonborn] 26/1/2021 11:08

Apparently there was discussion on Kape at last night's virtual 'Mello' investor meeting. They had negative views on Kape which I believe related to their marketing spend. I have looked at their latest accounts and in Note 3c it says 'short term & long term asset recognised from marketing cost to obtain a contract - £12.03m (short) + £16.3m (long term)'. Can someone help to explain what this means precisely in simple language, as it is a huge increase on the previous year; and is what has perhaps frightened some of the Mello participants.

[mrnumpty] 26/1/2021 10:43

Mr Numpty thinks that , if there is no substantive reason for today's 10p share price fall ( such as negative information from or about the Company or its markets , which does not seem to be the case whatsoever ) , then this is no more than " noise " which is all part of the investing game . Also , as has been noted here, Simon Thompson , the small cap tipster of Investors' Chronicle , published a very positive article about Kape only a couple of days ago - although he is not infallible , he has far more insight than any of us do . Maybe it is a " tree shake " by those fine market makers . For what it's worth , having been in Kape for about three years , Mr Numpty remains a holder and , if he wanted to increase his holding , would consider now to be an opportune moment to do so . However , do your own research - don't rely on someone called Mr Numpty !

[arcadian] 26/1/2021 09:16

I expect they need stock ahead of the results.