Knowledge Sppt Share Discussion Threads

[ghhghh] 11/3/2002 09:38

Results looked good to me.

The lousy 2001 revenues is in the price.

KSS say that they expect to hit breakeven before end 2003 and 'This (net cash) balance is more than sufficient to meet the Group's operating requirements and provides us with flexibility should the need to make acquisitions or other strategic investments arise.

They say in talks re major contract wins etc, tone bullish.

The bottom line is that they have loads of cash, low cash burn and 'have put their balls on the line' re prospects. Either they now make substantial progress over the next six months or face great pressure to sell/cash back.

[rangers99] 11/3/2002 08:17

Revenues down to almost one third of last year.

Costs up 60% but as you say reduced significantly now (does the 550K "cash-burn" include revenues and interest on cash?)

I think its hard for the company to make a case for itself. If revenues were up, or even flat then OK maybe.

Id like them to return 15p cash now and give it another 6-9 months to see if revenues improve. Or maybe just call it a day now.

[swizz] 11/3/2002 07:41

Please expand rangers99,

Results are terrible, but as expected.Cash burn is now below the target of 550,000 per month,cash position at the end of the year is slightly better than expected approx 25 million (32.3p per share),what we now need ask ourselves is the new management able to deliver the holy grail of shareholder value ?


good luck.

[rangers99] 11/3/2002 07:22

Final Results out.

Its a long time since Ive seen anything this scary.

[purple] 09/3/2002 15:06

Bargin!

£22 Million + cash

[rangers99] 06/3/2002 11:31

Anyone know of a specific reason why the price rose from 13p to 27p in 4 weeks during October?

[rangers99] 06/3/2002 10:42

Results out on Monday.

[ghhghh] 27/2/2002 11:37

I've looked at Controlp and agree could be cheap with cash around £2.5m TO £3m, a property worth say around £1m, a £3.2m market cap and supposedly now profitable.

The worry is that next announcement needs to be good, they need to confirm in profits or shares could dive.

KSS imo safer because business revenue so lousy market expectations low. If business results stay lousy a cashback or takeover looks more likey, both at substantial increase on current share price.

Any paper bid would have to be over the cash, ie over 30p.

[swizz] 27/2/2002 10:26

Further news out today on the US Advisory Board >>

[swizz] 26/2/2002 11:42

Over looked this news on the website last week reference the formation of US advisory board >>>

[andyprice5569] 22/2/2002 11:47

Wait for a low of 8p before buying stock

[swizz] 21/2/2002 16:47

Results notice issued for the 11th of March >>

[ghhghh] 21/2/2002 11:15

Should also have said that there has been a large seller at 12p, hence current price.

However seller now appears cleared.

I have been picking up stock at 12.25p, then had to pay 12.5p and today had to pay 13p.

So no cheap stock anymore and my guess is that the market does not have much on its books.

So far all 220K trades today look to be buys.

[ghhghh] 21/2/2002 10:20

Sorry, full Citywire article at



They are focusing on whether the business viable.

I doubt that it is.

My attraction is the cash and low cash burn plus sod all revenue - something has to give.

[ghhghh] 21/2/2002 10:03

Knowledge Support at 13p, capitalised at £9.6m.

73.8m shares and approx £28m net cash at June 2001. Say about £24m December or 32p a share.

Cash burn looks to be about £5m pa. Last trading update said operating costs would be under £550K per month by end December or £6.6m pa. Deduct revenue say £1m pa and interest say £0.8m gives cash burn of £4.8m pa or 6.5p a share.

They 'develop and market software systems which enable organisations to make profitable decisions through the setting of prices in competitive markets'.

See

The business might work out but could also be the next victim for partial cashback if Paul Scott interested. Or could be a takeover target.

KSS have 5 years cash at current burn rate.

Newbrook Ltd own 46% which I assume is tied in with the directors. However this may not be a block since as with Actinic, where the directors hold around 40%, this represents a lot of cash and is a powerful incentive not to waste it on staff/marketing/advertising.

Also a protest movement can be a bonus to the directors since it gives them an excuse for cashing in their free shares without the vilification that say Karl Watkin at J2C received.

Can't see much downside since all the bad news in the price, a further fall in stockmarkets or failure to increase revenues just makes a cashback/takeover more likely, which could yield an easy 100% profit.

For example if revenues drop from £1m to zero, only adds 1.3p to cashburn but how could directors continue business?

IMO this is a great fat turkey waiting to be plucked, perhaps it will fly but either way shareholders at 13p should make a decent profit with minimal risk.

[elrico] 09/11/2001 01:12

Tiped in RHPS 5 Nov.

[snape] 05/11/2001 17:10

Chicken
did the psg tip say anything interesting?

[chicken] 05/11/2001 07:59

tipped in psg this w/end

[cornkettle] 05/11/2001 07:41

Up pre-market today. Anyone know why?

[dulay] 29/10/2001 23:31

director just bought 135,000 shares and price starting to lurch up, my target is 40p, imho dyor, etc

[moonblue] 19/2/2001 13:37

come on everybody ,,,join the pru ...sell

[stultissimus] 19/2/2001 13:07

There has been no real "good news" for a while.
I expect results will indicate a major new contract(s) as per chairmans earlier statement ( regarding timing of potential order impacting on full year end results )
Sit tight and dont short yourself.

[moonblue] 18/2/2001 22:22

prudential sold recently althought the rns doesnt state how many but looking at trades pages you could add it up so i would say it has a short position feeling attached to it