Kape Tech. Share Chat (KAPE)

Agreed lesville. Good buying volume recently but not enough to consolidate at around 87/88p. And force a breakout over 90p. More patience required!!

This share price is so predictable, down on results, up on subsequent tips. Buying dries up, market makers lower price almost daily. Even Robbie Burns might get despondent here.

Have followed Robbie Burns for some time now. He often makes quick money as a result of readers following his trades. Let’s hope that they do not fall back again after this initial surge. Just my luck, shares I bought at 70p on results day I sold a few days later at 78. I do however still hold my initial investment.

Nice to see Robbie burns investing here again. We are due a re rate!!

Sp should be 100-105p at least...

Great to see Naked Trader buying in here. For the record, here's what he says:

Https://www.nakedtrader.co.uk/

"In these times I definitely prefer companies with a good cash bank or at least a low debt.

A company with a lot of cash is Kape and I bought some.

It has cash of $36m and no debt and this global cybersecurity outfit showed strong growth in revenue and profit.

For me, this leaves it looking very undervalued and I am looking for a push up to at least a quid assuming the market doesn't blow a fuse over Brexit.

Perhaps a catalyst for an upswing would be a move to spend some of that cash."

"There is a glaring disconnect between the stock market’s miserly valuation of Kape Technologies and the operational performance of the company."
https://www.investorschronicle.co.uk/comment/2019/09/18/exploit-kape-s-valuation-anomaly/

Hopefully these consistent rises this week mean the overhang is finally cleared.

Nice buying volume today. Could we see 80p hit in next few days?

This is very lowly rated for a growth stock.

doesn't seem to have many fans on lse but it certainly does as far as buying this morning is concerned. Maybe the results y'day confused folk who were just looking at the slight profit drop and not loking at the exceptionals that affected it?

Either way, seeing something approaching 100p in the short term. As soon as something else in the pf becomes expendable ad the sp stays relatively calm, i'm in for more.

gla (chestec!)

At under 70p it's top up time for me. A promising set of results, with lots more growth headroom ahead. I hope they maintain a healthy cash position to back further acquisitions as they seem to have a good track record on this so far..

sorry, meant increased turnover, not profits. profits slightly down on last year but with £6mill in the bank and forecast for further growth and almost at 12month low, seemed like a bit of a no brainer, considering the rubbish on the stock market generally.

I'm in... 90p short term... if hold into Q1... looking at that graph there's a lot of ground to make up so it's a good start, imo.

Crazy drop on good results!! Not for the first time on AIM.

Madness...

With increased profits and a positive outlook for further growth and sitting at v close to 12 month low is madness. If 90p v short term isn't viable then I'm a Dutch monkey's uncle!

KAPE H1 19 results webcast with CEO & CFO

https://www.piworld.co.uk/2019/09/17/kape-technologies-kape-h1-results-september-2019/

A strong first half.

Good results, and in particular very bullish looking forward - the use of the word "very" together with confident is a subtle indicator, as the wording of these RNS's is usually considered pretty carefully:

"The board remains very confident in delivering growth in the full year 2019 and in the years to come, in-line with market expectations"

KAPE have £30m cash against a £105m m/cap, so the net £75m EV plays an annualised $11.6m EBITDA - and this with no growth built in at all, which is obviously too conservative.

The growth in retention and subscriber numbers is great to see, and the transition to SaaS is going well.

There have been a number of profit warnings elsewhere this morning in AIM companies. Given its strength (balance Sheet and otherwise) and cyber-security presence and potential, KAPE appears to be one of the safer options on the market, as well as offering much growth potential.

Decent buying volume ahead of tomorrow...

Maybe large acquisition news forthcoming? Or even a takeover bid?!

Large rise yesterday on no news, some meaty buys going through...

Been a bit of a blood bath here? Down more than anything else I hold, except Burford of course!

Well, if you look at projections on the web site the shares will be on a low PE and high Dy within 24 months.

So it would appear that net cash and net profit are being invested in R&D. I say invested but Kape must prove at some point that retained profits will increase as a result.

N+1 Singer leave their forecasts (revenue and otherwise) unchanged at 6.8c EPS this year, rising to 9.3c and then 12c EPS.

They see $35.8m net cash at this year end.

They see the EV/ Dec-19E sales multiple of 1.6x as "attractive for a company delivering an increasing proportion of high-quality recurring revenues", and they see a re-rating towards 2.5x-3.0x, so very attractive upside.

They also see an H2 weighting of revenues due to Q4 seasonality and high growth in data privacy subscriber numbers/recurring revenues.

Agreed, strong trading update. What will it take to move the SP upwards? If this moves below 80p again I will be adding to my holding.

Yes, excellent update. Yet, the sp still fails to really shift upwards. Hopefully a ST update later today...

An excellent update all round. With 6.9c EPS forecast this year, rising to 9.8c for next year - and with almost a third of the m/cap in $40m net cash - KAPE looks very good value indeed, especially at current translation rates with the pound going lower and lower.

A cyber-security company trading at this low rating is a buying opportunity imho. Very confident outlook too:

""We continued our rapid progress into 2019, with high double-digit growth in Adjusted EBITDA coupled with the increased importance of our products to our customer's digital lives and a broadening of our R&D capabilities. The Group is better placed than ever to take market share and generate significant ongoing value for all stakeholders. We remain confident that our ongoing investment in people and products will continue to ensure Kape remains at the forefront of the burgeoning digital privacy and security arena."

https://www.investegate.co.uk/kape-technologies--kape-/rns/trading-update-and-notice-of-results/201907300700061038H/

As joint broker to Kape, N+1 Singer as you would expect are positive. I never take much notice of brokers as they always have an agenda. The share price at the moment is driven by the MM’s who will adjust prices to create both buying and selling. Eventually we should be rewarded for our patience.