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IMO: This is related to the Tesco cyber attack not peel hunt. Basically, if you are a hacker in a unscrupulous country, you could make a fortune by opening a short on IT security firms such as.., then cyber attack a UK company or a client, then close the short. I'd expect volatility and there's no one way ride, as previous poster has said, this looks like a bull trap. There might be customer numbers and revenue growing, but how good is the product actually and how much volatility should we expect on the basis of clients unsuccessfully repelling cyber attacks.
Stockready1 See my post on previous PH ratings
They are often VERY wrong ;o)
4 to the floor your filtered.
Dump and run
The current drop today is the typical bull trap
This will fall further
Peel hunt are never wrong from my past experience
Company can try to say whatever they want on their website but it wouldn't help them whatsoever
This will head towards 550/600 in no times
I am expecting a short fool rise first before another drop by the end of this week
Protect your assets
Or stay as a long termer it is a long hole but will come good eventually
In that case how did PH arrive at a target of 6,500 on ASOS using those metrics as everyone thought that was over inflated - fact is it’s all a game for these people to make money - at the end of the day I never listed to advice from Peel Hunt, Investors Chronicle, Motley Fool & many more as sometimes you just know where a company & it’s market are moving :o)
The problem, as I see it, is that the only way to arrive at a valuation of a company is by DCF analysis -and PH and others will use it - but as discussed a few times on this BB, it is is fraught with difficulty with high growth companies. Even relativity small differences in the growth rate - which can only be guessed at medium term - and the assumed Discount Factor can have a big impact on the derived valuation so it is not surprising to me that we are seeing very large differences by brokers. My only surprise is that the market pays so much heed to them.
Even Buffett, a huge fan of DCF, now openly admits that DCF must be seen together with , or replaced by, a more qualitative approach taking account of all the factors JayneC and others bring to the table.
For long term holders this volatility is inconsequential - for others it creates opportunities. Why the fuss, why the emotion?
4thtotheFloor, I seem to remember you called someone a ramper on here for suggesting we'd get into the FTSE this year. HKK gave you two opposing analysts views, but you'd rather believe the one that caused the SP to fall? Funny way to act for a so-called long-term holder. Regulars here have always answered you politely. All in your posting history for others to verify.
If you have to resort to name calling you've already lost the argument imho. Enjoy your trading, I won't bother wasting anymore time with you. Filtered.
4tothefloor Hope you bought ASOS like PH said at 5500 with 6500 target as it dropped to 2300
Just balancing your view
Agree HKK, for those of us who've done their research and know a bit about the tech, this just looks completely insane. I think days like this unfortunately show up the corruption at the heart of the system. The government won't deal with it as they profit from it themselves, so just a matter of time while the BigBoys fill their boots imho.
Just add to HKK's point - this year we've also seen collaborations and partnerships with Microsoft and Amazon, two of the biggest cloud providers:
https://www.prnewswire.com/news-releases/darktrace-builds-on-aws-collaboration-with-improved-serverless-architecture-and-cloud-native-capabilities-301397419.html
https://news.microsoft.com/en-gb/2021/05/10/microsoft-and-darktrace-partnership-will-help-keep-organisations-secure-using-ai-that-learns-self/
Anyway thanks PH for the extra shares
I’m British & love being British
BUT I’ve worked in US Tech companies ALL my life
The U.K. are DUMB when it comes to valuing modern high tech
If Darktrace were listed in the US they would be 3-4x todays SP
British just don’t get how to value good tech firms which is why many avoid London’s exchanges and go where real investors get it
OK here’s why PH have NO CLUE how to value a high tech security modern cloud company driven on ARR
At a SP of 801 the Market Cap is £5.58B ($7.68B)
In Customer Relationship Management (CRM) the big boys all bought Siebel etc & IBM, Oracle & Microsoft have big offering but Salesforce still thrived as an independent cloud leader now with a Market Cap of $224B
In Human Resource Management the big boys bought PeopleSoft etc & again all the big players have offerings but Workday still thrived as an independent cloud leader now with a Market Cap of $57B
In a commoditised Single Sign On security space, again big boys like Microsoft, Oracle & Salesforce have solutions but Okta is thriving as a breakout cloud specialist, valued at $31B & growing
Recently Norton announced buying Avast for $8B as they try to firm up offerings in the space. Analysts say that was cheap!
Darktrace main competitors such as Crowdstrike are valued @ $64.67B with circ $1.34B ARR over 9,900 customers and has just entered Nasdaq 100!
Dark NOW has 5,605 customers, having grown its customer base by 45.3% year-on-year with Annualized Recurring Revenue (ARR) of 357.3 million outlook, which represents year-over-year growth in constant currency ARR of at least 45.7%. Currently valued @ $6.38B
The total addressable market (TAM) for Darktrace is $28 billion and by 2024, $40 billion so a lot to go around.
Here’s another
BERENBERG RAISES DARKTRACE PRICE TARGET TO 900 (850) PENCE - 'BUY'
It’s one poor analysts view
Here is another
JEFFERIES RAISES DARKTRACE PRICE TARGET TO 1,030 (900) PENCE - 'BUY'
Why you guys worry? 475 is still a good valuation considering the debut price and the lingering extradition danger still in place.
We can profit by going all in around the 600/550 level (I doubt it will ever get so low as 475).