Kape Tech. Share Chat (KAPE)

Sagi has taken not only the entire 2.35m shares sold yesterday by the directors at 200p, but he's also bought another 1m shares on top of that!

Quite a vote of confidence in the company.

Teddy Sagi has brought his total holding in Kape to 67.65% after
buying the CEOs and CFOs shares after they exercised part of their options yesterday.
Sagi is fully in control here and it will be interesting to see what he will do next with Kape.
I predict corporate action very soon imho.

Hmmm...

Here's Ardens's summary FYI from their new Buy note with the 260p target:

"Kape Technologies
Buy
Target Price: 260p

AGM statement upbeat; co on track; Buy

We reiterate our Buy rating on signs of good progress in integrating PIA and solid growth in the group’s user base. Management’s AGM statement reiterated its prior guidance for the year (our forecasts are inline), albeit maintaining a close eye on market conditions given the progression of the COVID-19 pandemic. The group’s share price has risen 20% YTD and now trades on 16.6x FY20E P/E and 3.3x EV/sales. Our estimates are unchanged but we take the opportunity to up our TP to 260p (implying 4x FY20E EV/sales) from 208p, reflecting robust momentum within the group and highly supportive trading and capital market conditions.

Management’s commentary highlights good momentum in user growth of 19% YoY during April as the group has capitalised on strong underlying trading conditions. Traditional seasonality for VPN sales within the business is weighted to H2’20. Given the current scale of working from home practices across COVID-19 pandemic-impacted markets, we view user growth as well underpinned for the remainder of the year with the April figure demonstrating encouraging progress.

Management also reported that it remains confident on delivering the US$3.5m-US$4.5m of synergies from the integration of PIA, which continues to plan. The two groups’ server architecture (the backbone of its service delivery) is now complete, allowing an improved user service. Importantly, management highlights an encouraging uplift of new user growth rates since applying its user acquisition practices to PIA’s product suite.

The product roadmap continues to progress and the group highlights the implementation of its new encryption protocol (WireGuard) has accelerated the speed of its Digital Privacy (VPN) division solutions by 30% relative to its prior state. We are also particularly encouraged by good initial feedback from beta trials of a cross-platform feature aimed at improving retention. Within the Digital Security division, the group aims to launch endpoint security solutions for Windows, expanding on its MacOS products, in Q2’2020."

Hi rivaldo
- any views on citrix systems ? - US based company seem to do similar stuff as Kape?
Anyhow - their website says no need for VPN etc - just browsing the net as a purchaser of some VPN security (I hold Kape shares ) and these guys popped up ...
https://www.citrix.com/digital-workspace/replace-traditional-vpn.html

Aim-traded shares in Kape Technologies (KAPE:208.5p), a provider of cyber security software, have smashed through my 200p target price after doubling in value since I last suggested buying, at 100p, two months ago (‘Three buying opportunities’, 18 March 2020). I first recommended buying, at 47.9p, in my 2017 Bargain Shares portfolio, so long-term holders have more than quadrupled their money. The re-rating is fully justified as this morning's trading update highlights.

Firstly, home working and remote working restrictions imposed on billions of people across the globe 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). . Moreover, management report that demand for virtual private network (VPN) solutions that encrypt and secure internet connections has been rising notably in both North America and Europe, regions which account for almost three quarters of Kape’s annual revenue. Indeed, new monthly sign ups increased by 19 per cent last month within the digital privacy segment

Secondly, even before the lockdown restrictions, industry experts were predicting that the digital privacy market would grow by 50 per cent by 2022, thus providing a strong tailwind to Kape’s business. It’s a safe bet to assume that growth rates will be even higher now as hundreds of millions of internet users try to protect themselves from the marked increase in cyber and phishing attacks. The data security breach of 9m online customer accounts at budget airline EasyJet (EZJ) this week highlights the need for both companies and consumers to be extra vigilant.

Thirdly, there is scope for earnings upgrades driven by ongoing organic growth and by successfully marketing new products and cross selling existing ones to a significantly enlarged customer base following the acquisition of Colorado-based Private Internet Access, a leading provider of VPN solutions.

Fourthly, management reiterated guidance which points to underlying pre-tax profit trebling to $31.4m, and earnings per share (EPS) almost doubling to 13.4¢ (11p). Bumper operating cash flow should cut net borrowings by 38 per cent to $20m by year-end which means a higher level of economic interest in the company for shareholders. Kape has also completed a recent debt refinancing that has reduced interest charges in half.

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.

Cheers - here's ST's intro:

Https://www.investorschronicle.co.uk/comment/2020/05/21/profit-from-kape-s-chart-break-out/

"Simon Thompson 35 minutes ago

Profit from Kape’s chart break-out

Aim-traded shares in Kape Technologies (KAPE:208.5p), a provider of cyber security software, have smashed through my 200p target price after doubling in value since I last suggested buying, at 100p, two months ago (‘Three buying opportunities’, 18 March 2020). I first recommended buying, at 47.9p, in my 2017 Bargain Shares portfolio, so long-term holders have more than quadrupled their money. The re-rating is fully justified as this morning's trading update highlights."

Simon Thompson (IC) has just renewed his Kape tip on this mornings news, lifting target from 200 to 275. "Profit from Kape’s chart break-out"

Arden have this morning increased their target price to 260p (from 208p), and say Buy :o))

Enough said.

It is the old market adage, "Buy the rumour, sell the fact". Looking forward to seeing what the actual figures are. I suspect that they might beat their guidance at the end of the year. Now that would make it move!

Thought this would of moved up on the news but alot have sold to make there profit.

Here we go guys!! Great RNS to push this on

new monthly sign-ups in April 2020 increased by 19% to the comparable period in 2019

KAPE..."I'm pleased to report that Kape has made a strong start to 2020, As announced
on 31 March 2020, Kape has experienced increased demand for its products as
working remotely has become commonplace across the globe.

https://www.investegate.co.uk/kape-technologies--kape-/rns/agm-statement/202005210700075401N/

https://uk.advfn.com/p.php?pid=legacydaily&epic=L^KAPE&type=4&size=3&period=4&ind_type1=1&ind1_1=&ind2_1=&olx_1=3&ma_type1=3&o_1maday1=10&o_2maday1=&o_colour1=1&olx_2=3&ma_type2=3&o_1maday2=50&o_2maday2=&o_colour2=2&olx_3=3&ma_type3=3&o_1maday3=200&o_2maday3=&o_colour3=3&scheme=&delay_indices=DELAYED_INDICES

COVID-19 has provided a jump-start to this already thriving business:
https://uk.advfn.com/stock-market/london/kape-technologies-KAPE/share-news/Kape-Technologies-PLC-AGM-Statement/82506775

The clues are there if people choose to see them, in the rate of new sign-ups, the delivery of synergies, the confidence in meeting expectations only four months into the year, the "uplift in the growth of new users" at PIA, the new privacy products....

No-one could expect more at this stage from an AGM statement.

This price will be a bargain one day , not a lot of them out there.
Average volume 265.62k
Shares outstanding 154.70m
Free float 48.34m

More new highs today.

New highs today after an 8p rise. Tthe AGM statement on Thursday looks like it will be great following the very positive recent COVID-19 update and the Chairman's share buying.

Thanks Rivaldo
I have a major position since last September
and am holding....I am staying with the mercurial Teddy Sagi who is appeared on the Sunday Times Rich List yesterday at £3.7 billion.
It is all about subscriber numbers which were c2.5million in March ...I feel Kape can reach 3 million + by year end which could see share price at £ 2.50-£3.

Arden have issued a new Buy note this morning, with a 208p target price.

Ther are VERY positive, summarising:

"We reiterate our high-conviction Buy rating on Kape"

notng the accelaration of demand due to COVID-19 and stating that the risk to forecasts is on the upside as the lockdown persists.

The IC have this week carried out their annual review of the top 100 companies on AIM. This what they said about KAPE:

Https://www.investorschronicle.co.uk/shares/2020/05/06/the-aim-100-2020-70-to-61/

"Kape Technologies

Cybersecurity software provider Kape Technologies (KAPE) is more defensively positioned than many other Aim constituents in the wake of the disruption caused by the Covid-19 outbreak. The group has already reported increased demand for its products following the global switch to home-working, particularly within its digital privacy division.

Demand for digital privacy products was already indicated by last year’s 40 per cent organic growth in subscriber numbers to 2.35m, alongside an 81 per cent retention rate. In December, the group completed the acquisition of Colorado-based Private Internet Access for $127m, which expanded its presence in North America and should result in up to $4.5m in savings this year. After taking into account that boost, management is guiding towards revenues of between $120m and $123m and adjusted cash profits of $35m-$38m in 2020. Hitting the lower end of that second forecast would amount to a 140 per cent increase, year on year. Buy."

I mentioned Kape KAPE yesterday as a potential buy.

Just seen this post from the respected poster Rivaldo.........

============================================================================

"New Buy tip for KAPE this weekend Sun 11:25
Very positive review in this month's new SCSW.(tip sheet)

It's one of only two companies covered in the entire issue which conclude with the instruction to "Buy" (and the main tips and ideas are rubbish this month imo!).

===============================================================================

Key upcoming dates
21 May 2020 AGM / EGM

could take off on this day.

Last update.......... Very Bullish

Above RNS should be.........

https://www.investegate.co.uk/kape-technologies--kape-/rns/covid-19-update/202003310700061324I/

And this update for KAPE..........

https://www.investegate.co.uk/kape-technologies--kape-/rns/director-dealing/202004021438246213I/

Chart not brilliant yet but it could be on next AGM Update......................... last year 7th of May

Im a buyer tomorrow

https://uk.advfn.com/p.php?pid=legacydaily&epic=L^KAPE&type=4&size=3&period=4&ind_type1=1&ind1_1=&ind2_1=&olx_1=3&ma_type1=3&o_1maday1=10&o_2maday1=&o_colour1=1&olx_2=3&ma_type2=3&o_1maday2=50&o_2maday2=&o_colour2=2&olx_3=3&ma_type3=3&o_1maday3=200&o_2maday3=&o_colour3=3&scheme=&delay_indices=DELAYED_INDICES

Rivaldo
Well done again
Keep up the good work

Very positive review in this month's new SCSW.

It's one of only two companies covered in the entire issue which conclude with the instruction to "Buy" (and the main tips and ideas are rubbish this month imo!).