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Started: cefncribwr, 25 Apr 2023 13:19
Last post: TerryM1, 7 May 2023 09:57
From another board
Merger, story of pig and chicken, one day chicken says to pig let's merge breakfasts are booming, we will make a fortune, I lay the eggs you supply the bacon. Great said the pig, then he thought, hang on Mr Chicken you lay eggs everyday, I get carved up. That's why I called it a merger, not a takeover said Mr chicken
Looks all too familiar
Stuartrm
Sorry to hear that, the only small consolation is that CGT losses will become more useful with the current tax changes.
I am making a small profit as I picked these up from Primary Bid in the last placing with the intention of holding for long time as it looked like a winner.
I think most of us share your frustration, TerryM1. This takeover, with the likely Squuzeout provision enactment, is little more than legalised theft. I am losing about 30% on my holding.
Answered my own question, now gone unconditional as I was expecting.
Not very happy but unikmind as a majority shareholder I guess this was never going to end well for the small guys.
FCA make me tick boxes, stop me buying shares in some placing as it seems I do not know enough where I can buy them in the market for more and can't even sell REIT shares in my IWEB account and rebuy back in my ISA in one transaction fee as not able to tick the KID box in this type of transaction. With all these restriction the FCA do nothing about this type of sharp practice, in effect blackmail, accept our offer or you will be stuck in a delisted company, you have to answer what is the point of the FCA except to tie you up in knots and prevent the small guy from having the same options as the large institutions.
Unikmind acquires another 12 million Kape shares
https://www.sharecast.com/news/aim-bulletin/unikmind-acquires-another-12-million-kape-shares--13147474.html
Looks like those shares being sold before the end of the offer are being bought by Unikmind
Does anyone know if this means the offer will become unconditional and shareholders will get the £2.90 or could be stuck with these shares.
It is now making only having 2 bad choices.
Started: Stuartrm, 20 Apr 2023 11:15
Last post: rivaldo, 24 Apr 2023 15:57
Ta-ra KAPE, it's been a great ride, but with a wildly frustrating ending. I finally sold this morning and truly hope Sagi gets screwed as much as he's ripped off the shareholders here. Sadly, I suspect that won't happen and we'll probably see KAPE re-listed at twice this price in the future!
PS : if anyone wants some ideas as to where to reinvest, TST, DKL, REAT and SYS have all recently announced good news and are rather good value imho, along with the likes of RNWH, CAPD, MWE and CNIC as other examples.
Watch him list on Nasdaq but agree holding on too risky once delisted.
I have also reluctantly sold out today after many years of holding. Made a decent enough profit, but very disappointed in the offer as it should have been so much more and the way sagi has conducted himself is disgraceful. The share price would likely have been multiples of what it is now in a few years so it’s a shame to lose another solid growth stock in this way. I did consider holding just to be awkward, but I suspect sagi will get his way and delist by whatever means. Once delisted, he will find a way to screw you over as he has had no shame in doing this in a regulated and very public forum. I no longer want any association with sagi or any of his businesses. He might be entitled to do what he is doing but he’s forgotten general morality and will never be trusted again with investors both large and small. I’ll be renewing my vpn elsewhere.
Your naively confident there Stuart and I fear lulling the more insecure investors into a false sense of security. You have absolutely no idea whether he will succeed or fail, you only hope he will fail because you don't want to accept his offer even if it does undervalue the company. He already has 67.15% and if investors remain invested and he were to succeed and gain the additional % he needs to delist its too late and investors will most likely lose everything as it will be much harder if not impossible to sell your shares.
Noted, JPDT- Note, however, the pressure in the offer for us to accept quickly. Why the hurry? Any decision can wait until the acceptance deadline. That is what it is there for. No one other than Mr Sagi will gain from an early decision. Also, who benefits from any acceptance? Mr Sagi, clearly. He expects to profit from the takeover. There is no need for anyone other than Mr Sagi to panic over any delays in people accepting his poor offer. Unity is strength with this one. If we sit on our hands he will deservedly fail.
Started: ftseexplorer, 21 Apr 2023 12:54
Last post: ftseexplorer, 21 Apr 2023 12:54
https://www.investorschronicle.co.uk/ideas/2023/04/20/should-kape-technologies-shareholders-accept-a-higher-offer/
Disappointing but looks like we are in the final throws here now....
As a non-Isa investor if I were to leave my holding in place in the belief that Sagi will do a buy and build and sell/refloat in the next 5 years,apart from limited protection of minority interest what other risks are there?
Last post: Troajan, 20 Apr 2023 16:14
Started: Stuartrm, 4 Apr 2023 21:57
Last post: Stuartrm, 19 Apr 2023 13:15
You do not have to accept either. I am not accepting and am retaining my shares, as per advice in the IC. Unless enough people accept the offer to give Unikmind 75% (they currently have around 53%) of the shares, they cannot take Kape private without a vote in their favour. Failure to reach the 75% level would give them the choice to increase the offer or abort the takeover attempt, at least for now. At the current acceptance rate, which is minuscule, Unikmind’s offer will fail.
I meant 'bought first in early 2018' and not 'both first..'. Thanks!
Hi all,
I received a notification from my broker saying that I should take action regarding the sale of Kape shares (Cash Offer by Unikmind). I would like not to, as I believe the share is undervalued (am a LTH, both first in early 2018 at 76p). Are there any options, or is it a 'done deal', therefore no point in not accepting the offer?
thanks!
"Kape shareholders who have not yet accepted the offer are urged to do so as soon as possible," Unikmind said in its statement on Tuesday.
Yeah, right! They must think we are daft.
Started: cefncribwr, 24 Mar 2023 17:01
Last post: ftseexplorer, 30 Mar 2023 17:28
Tin hats on, time to hunker down and sit this one out. Let's hope the minority can force their hand. 5th May seems like an eternity away!!
In an article in IC today, the writer suggests that an improved bid is the most likely scenario. I hope so, although the current market price suggests that this view is not shared by everyone.
Started: kingsinbad, 21 Mar 2023 18:51
Last post: Steadzz, 23 Mar 2023 11:24
You can guarantee that Mark Slater (Slater Investments) won't be accepting the terms. He's previously been very anti takeovers of his holdings, the exception being Clinigen where the offer was fair value. This is obviously not a fair value proposal, so i would be almost 99% sure that equates to another 6% against the offer.
If you go back through the two RNS from 14 February you will see how much Pomerantz & Burchardt hold. It is not the number you quoted and they would have been under the same purchase restrictions as Sagi until the market update 21 March.
There is also a significant shareholders link on the kape website:
https://investors.kape.com/investors/significant-shareholders
What about the brothers Pomerantz and Burchardt who between them hold 18%.
Are they not independent directors?
Thanks Stuart. That was very helpful and I thoroughly agree with your analysis.
Hargreaves L inform me that the offer is open until 4th May so presumably no action need be taken before that date.
Jab1tt, the link works for me. In simple terms the document says the independent directors advise against accepting the offer, and they will not do so with respect to their own holdings, which amount to just over 6% of the total. They do, however, caution against shareholders being stuck with shares that cannot be traded if the proposed delisting occurs, owing to difference between Manx and English law. In short, as it requires a 75% majority for the takeover to go through, and Unikmind currently have somewhere in the region of 54% of the total number of shares, the onus is on the rest of us to block the takeover. For my part, I have declined to accept the offer and I could only look on, open mouthed with incredulity, at anyone who decided to accept it.
Started: Ironman22, 10 Mar 2023 12:03
Last post: Jab1tt, 21 Mar 2023 18:41
Neither can I. What does it say. It is not on their investor website?
What time? I cann't see it
The document was posted yesterday, Check the RNS...
I think you’re right, Stuartrm, but we were told yesterday the Response Document would be up on Kape’s website by noon today. Still no sign! V poor.
I don't think I have been in such an ironic situation where a company produces great results and the price is held back because of a takeover offer no one wants except the offeror.
As we all known it is caused by the threat of accept my offer or I will take it private and you will all loss out, this sort of blackmail should not be allowed by the FCA but as always they completely useless.
Started: Grahamfrank, 21 Mar 2023 17:53
Last post: Grahamfrank, 21 Mar 2023 17:53
The board are supposed to have written to shareholders by midday today about the offer but I have received nothing and cannot find anything on their web site. Has anyone else had any success? Large sales today after such good results seems strange
Last post: kingsinbad, 21 Mar 2023 09:51
Sagi offer out Kape on a P/E of 7. Don't think I've ever seen such a low ball offer...
Should move the listing to NASDAQ if that is going to get the share price to a point which reflects reality and stops this type of Sagi shenanigans. Or maybe it won't make a difference as the problem is that he is a dominant shareholder regardless of where it is listed.
No wonder Sagi wanted his nefarious purchase finalised before results. Who, in their right mind, would accept £2.85? Absolute joke.
Started: cefncribwr, 8 Mar 2023 09:59
Last post: Vbig, 8 Mar 2023 19:53
If Sagi's bid is rejected then I'm not sure how much the price will go up. Why would anyone want to buy shares in Kape at the current, or higher price, when Sagi is likely to have another go at taking the company private "on the cheap" at some point in the future.
But arguably the fundamentals here are a lot better.
If you look at takeover bids in the last year for Darktrace and GB Group, for example, they were both withdrawn and the share prices dropped by about a third in each case on the news. I'm not saying it's going to happen, but the bidder here may just decide not to up his offer and then buy more at a lower price when the share price falls, thereby increasing his stake to a point where a future takeover cannot realistically be blocked.
That doesn’t make sense to me. If rejected, it’s because it’s massively undervalued and price should go up to a more respectable level.
Are you mad? Sagi offered 285p which basically means it's worth double that. If he doesn't get his way, it's outstanding news for retail investors.
Started: risingboats, 27 Feb 2023 16:21
Last post: Lsoc85, 2 Mar 2023 12:12
I've received the same three options via HL.
Presumably, hold and do nothing means a rejection. If it was the case that only those in attendance count towards the final score, they would have to provide a reject option so we each could reject by proxy.
This is a positive. Struggling to see how he gets his 75% when the apathetic's votes are automatic rejections.
Apologies - the response is from the independent directors, not the whole board
I've not seen anything from my broker yet but personally I'm holding and following the boards response I believe (and hope) that is the correct decision for now.
I’ve received paperwork from HL offering a vote to accept current offer in £ or $ or Hold. I assume based on the mood-music of this BB and the fact buys are still going through that Hold is the best route forward in expectation of a better offer being made shortly? Would appreciate fellow investors’ advice
Started: rivaldo, 28 Feb 2023 07:23
Last post: darrenp, 1 Mar 2023 00:37
Large number of big buys after hours.
Interesting choice of words also...'materially'...the board and institutions aren't looking for 50p higher here....they see the value here is north of 5 quid.
hats off to the board here....good to know that this isn't some stitch up. Would love to be fly on wall with company's call to slater - the son of jim slater who wrote the Zulu Principle. He would have told them where to stick it...and clearly others did also.
Very good news and I'm buying back in today.
Felicitations to KAPE's independent directors, who have now correctly concluded:
"the Offer materially undervalues Kape and its future prospects"
Over to Unikmind et al to produce a much weightier offer?
Started: cefncribwr, 22 Feb 2023 15:01
Last post: POWER, 26 Feb 2023 17:43
Manipulation of sp at its worst.
Haha I like your style!!!!! Very true!!!!
If the board and Sagi thinks the 285p offer is fair, then the other (non-Sagi) shareholders should be allowed the chance to buy out Sagi for 285p and he should be happy with that.
Shocking how the board didn’t release news of the initial approach - and no update since! Talk about disorderly and false markets! They must release an update this week
My online calculator suggests the sterling value of the offer is now £2.84, so about 8p short of the current price. I really don't know what will happen but am prepared to take the risk of losing 8p a share in the hope that we will be offered over £3 once the Board has given their assessment.
Started: Smartalec1, 21 Feb 2023 23:08
Last post: Smartalec1, 21 Feb 2023 23:08
There's a little more to come:-)
Why no comment from the board??!
Got official offer through on ii for 3.44 USD per share.
When are we going to hear from the board?! Radio silence. Suspect they are eeking out 310p a share for a bull**** ‘recommend’ takeover. End game this week IMO
Started: rivaldo, 16 Feb 2023 07:25
Last post: rivaldo, 16 Feb 2023 07:25
https://masterinvestor.co.uk/equities/small-cap-catch-up-cyber-security-bricks-shipbroking-and-debts/
"Kape Technologies (LON:KAPE) – Teddy The Price Is Not Cuddly Enough
What do you do when a company, in which you control 54.8% of the equity, is not being afforded a realistic market rating?
That must have been a quandary facing Teddy Sagi, the Israeli-Cypriot multi-billionaire financier whose cyber security software services group Kape Technologies was suffering such a low valuation.
So last December, when its shares were trading at only 225p, he approached the group’s Board with a 265p a share cash bid for the 45.2% that his Isle of Man-based Unikmind investment company did not already own.
The approach was rebuffed.
In a statement to The Financial Times Sagi commented:
“Having weighed the pros and cons of a public listing under the current macro uncertainties and thin stock market trading as well as new growth avenues, we are firm in our view that Kape’s next chapter in its corporate journey should be within the private arena.”
On Monday of this week Sagi, who also owns Camden Market in North London, came back with his offer to the Board, after he was enabled to do so following restrictions being lifted.
Again, the offer has been rejected by the Board, who advise shareholders to await their next comments.
Immediately it became public knowledge, the shares lifted in price to touch 295p before resting 35p higher on the day at 292p.
The dealing volume in the shares was nearly 100 times greater than the daily average, with some 31.8m traded on Monday.
Last night they closed at 292.5p on the back of some 3m shares being traded.
Such a cash offer may not succeed, however what Sagi has now given the market is a very clear marker of the price that he is more than willing to pay for this cracking technology services group’s shares.
Hold very tight and remember that just fifteen months ago they were up to 455p – although it may take a long time before my 2021 Target Price of 600p is achieved.
I would guess that when he is able to, Sagi will dip into the market and soak up more shares.
No doubt he will table a proposal to shareholders that the group is taken private, but he will need at least another 21% of the group’s equity under his belt to secure such a voting victory.
Come on Teddy give shareholders a good cuddle with a better price than 285p for their shares – you know that you can afford it and you also know that the shares are worth well over 400p at least.
That does not mean that another bid would need to be around that price, but 325p a share feels a great deal more attractive."
Started: cefncribwr, 14 Feb 2023 11:20
Last post: iWantThatOne, 14 Feb 2023 14:18
If the three largest institutional shareholders which together hold c20% of the shares were to come out and say “this offer materially undervalues the company’s prospects and we will not support it” then that would put the Board in a difficult place - if they were indeed planning to let Sagi get away with this in order to keep themselves on the gravy train. They have a duty to ALL shareholders. They would have to explain why their version of the future differs from the institutions’ views. They also have to explain what’s happening with the 265p monies - let’s recall we all expected these to fund meaningful, earnings-accretive acquisitions that would further enhance prospects. I expect the Board has already taken soundings and we can expect a response imminently.
I think you're right, management knows if they want to stay with the business post-highway-robbery they have to keep on the right side of Sagi.
If I were management I would have been embarrassed to present to shareholders an offer of 285p and would not have mentioned that, before I had used my amazing negotiating skills, it was 265p. I would simply have resigned and at least retained my integrity.
But unfortunately most people are cowards and value money and their own comfort above integrity.
" 'we recommend that you do not accept the offer' would be nice."
--------------------
Yes, that stinks to hell that it's not been forthcoming.
Wouldn't be surprised to learn he's done a deal with the management promising them no loss of income/remuneration under the guise of:
I'll need a management team to continue running the company for me. Oppose me and you can close the door after collecting your hat and coat. Support me and you won't lose out financially.
They've put nil effort into negotiating a better settlement for holders.
Probably sheer coincidence but from the first RNS announcing a bid for the company had been received - to the second RNS coming out stating:
We've accepted it (without negotiaton) - was all of 15 minutes apart from start to finish.
Stinks to heaven by not negotiating for better terms. Maybe they didn't want to put their head on the line, especially as the bidder gets himself involved in real-life assassination attempts.
- What undesirable company is he mixing with?
The stubborn and stable market price unfortunately suggests that the market is not expecting a higher offer, which is a shame. Whatever the Board says next may of course have an impact on the share price.......'we recommend that you do not accept the offer' would be nice.
Started: DaddyAIM, 13 Feb 2023 14:26
Last post: stansmoney, 14 Feb 2023 10:21
On the trading update, hmm not sure we'll get one now given the last one less than a month ago along with notice of results for 21st March. That update did say though that 'Kape is now in an enhanced position to accelerate our ambitious strategy' thus lets see that deliver value in stead of the current offer. Cheers.
Still annoyed, I anticipate the Board are seeking views from the other main holders, and I expect those new and existing institutional investors welcomed at the fundraise last year will not be satisfied with this 7.7% 'premium' on their 265p invested, particularly when they understand that the first offer was just 265p and thus no premium at all. They took the effort on diligence then and invested substantial sums, as we all do in relative terms, and will expect more than that. In particular they'll want to know how current trading is going and that the 'accelerated growth strategy' sold with the fundraise is on track, that's why they invested. It's a bit complicated though with one large holder who is the bidder here, from his point of view if he can get Kape for 285p given the low market valuation then why not, and up to the other holders to resist and seek a better exit if this is where its going, or indeed delivery of this 'accelerated growth strategy'. I wonder if the Board will issue a robust trading update in the next few days in our defence here.
Sagi seems to be a bit short-sighted. He's only early 50s so he has quite a few years left to operate in the investment sphere but who would want to invest alongside him in the future? No long-term investor would feel comfortable investing alongside someone who is just looking for a opportunity to shaft you.
Apparently he was the target of an assassination attempt in Cyprus in 2021, so he seems to **** people off.
Yep, that link not responding so went back to the indirect FT link and here's a flavour of their distaste against the offer. They're encouraging holders to go all Ukrainian and resist the enemy -
"With more than half the shares already in Sagi’s hands, minorities should contest the skimpy 13 per cent premium to the three-month average price....
... Shares on Monday traded above the offer price. Even if Sagi controls most of the shares, Kape minorities still deserve more for their holdings. "
With the FT running a piece coming out against the offer yesterday of:
"Kape Technologies: Teddy Sagi gambles on quiet minorities
Shareholders should contest the skimpy 13% premium to the 3-month average price"
---------
It's advocating resisting the offer and just about confirms the financial media as a whole are disgusted with the smash and grab raid. I gained access to the FT article by other indirect links so it may not open if not subscribed. Surprised it allowed me in -
https://www.ft.com/content/b2015b87-d92b-4883-99f7-ed5147a99211
Started: anyoneforcricket, 13 Feb 2023 19:12
Last post: anyoneforcricket, 13 Feb 2023 19:12
having bought into this at 2.90 in Sept 22, i feel utterly short changed over what was proposed today. Will hold and await the outcome, probably should have done my research better, having 1 large shareholder always leaves open to this sort of opportunism. what is happening here does not quire pass the 'sniff test'....!
https://www.investorschronicle.co.uk/ideas/2023/02/13/a-buyout-offer-that-s-easy-to-refuse/
Fair value is 500p a share in Simon's view.
GLA
But if he gets to 76% and can trigger a de-list, but the other 24% of shareholders still won't sell, then how is that advantageous to him. He just ends up with 76% of a unlisted company which surely is worse than 76% of a listed one because it's harder to now mop-up the other 24%.
Am I misunderstanding something?
What if we reach an impasse? Board says min 350p say, then what? Sagi tries to buy shares in the open market and persuade institutions to sell - but would they? If he can’t get to 75% to trigger a delist (if that’s the threshold), what can he still do as majority shareholder?
It's a pretty horrible set of circumstances. Really horrible when you compare to Adept last week being bought at almost 2x. Adept had far less potential growth wise and was highly geared...
I really thought we would be looking at a takeover for Kape...but an external one which would see shareholders make 2x minimum. Even that would have been at trading multiples far lower than other transactions in the sector...so this is just a terrible position now.
I sold personally...not impossible that the board will secure a further 10/20% from Sagi...highly unlikely another offer will be put on the table as Sagi would clearly reject it given he wants to take Kape forward privately. So in my view any upside from here is limited and holding on was an opportunity cost - CentralNic in particular feels like it could be next in line imminently and plenty of others.
Interested to hear what others think will happen here. Sad day in my view...a proper destruction of shareholder value. However, not blaming Sagi; its not for him to be acting in our best interests, only his...and the UK market just simply would not ascribe a reasonable valuation to Kape.
Spot on Terry, not even a veiled threat, very unpleasant
Sell to me or be stuck with something pretty much worthless
.
Yep - shouldn’t be allowed to own that much of a public company. I’ve sold just under half my holding above the offer price. Will keep half for the final showdown, whatever that may be. Saw the RNS headlines this morn, and was expecting to read 60-70% premium. So disappointing
Started: freshmatt, 13 Feb 2023 07:29
Last post: stansmoney, 13 Feb 2023 12:14
I'm disappointed by the proposed deal too, it's not much of deal is it. We were at 299p last month and traded above 300p for months last year, then at the September fundraise we were told it was 'significantly oversubscribed' at 265p and now he comes with an initial offer of 265p for the whole lot, now raised to 285p. It's not really a premium in my book and hard to see much acceptance at this level. Have matters deteriorated so much in the last few weeks then? No. The offer looks too low and the Board should reject it, somewhere north of 325p should be a starting premium for Kape. ATB.
It's a done deal
I'm in the same position as you. Only bought a month ago and not even making a profit yet. But as Unikind own 64% of the company anyway it's there's for the asking. Directors own a paltry 0.385 % so they are powerless too.
The issue is that any counter offer from another party can just be voted down by them - I’m afraid KAPE is gone
What do we think the chances are of this going through? Any chances of this disgraceful offer being rejected?
Really really really huge destruction in value...almost can't believe a board would allow this. It was always the risk...and I cannot blame Sagi...its the UK markets fault for not valuing these brilliant companies in any fair way.
Whilst I can appreciate your dislike of using TTM calculated ratios, I think you’re too dismissive of their use. They are handy.
Without TTM metrics you’re just left with previous years' accounts whereas TTM trails the previous 12 months starting from the current most recent trading updates to gain a better insight into trends, to better manage the future.
(Yes, I did erroneously add “and calculated forward” instead of current quarterly trading results) that’s because I’m always looking at the forward metrics that run down the right-hand side of my screen :)
Although I dislike stocks with single-digit profitability metrics, those single-figure metrics I initially posted on - are higher than last year's single-digit metrics
- so a trending improvement, and I look forward to maybe the first of double-digit metrics in that category come late March.
(Market consensus for revenue is for $619m for year ending ‘22).
The Jan 17th update did reveal to expect circa $623m in the upcoming March 21st trading results - so a beat on the consensus guidance!
And hopefully, that transmutes all the way down to the bottom line. So holders are right to be bullish going forward
- but currently, the SP is paying no attention to that ‘in the bag’ update, at all!
Forward consensus is what matters and it's pretty low leaving room for easy beats.
Low valuation provide downside protection.
STRONG BUY.
“they’re all TTM (Trailing 12 months based) so they’re based on the latest trading updates and calculated forward. (Not by me but by the algo’s :)”
By definition TTM/published data are not forward looking or calculated by algo. It’s priced in and backward looking.
Not backward-looking data at all, DaddyAIM - it’s current data,
- they’re all TTM (Trailing 12 months based) so they’re based on the latest trading updates and calculated forward. (Not by me but by the algo’s :)
The last 4 years or so where profits were produced, all fall in much of a muchness, in line with the latest TTM metric results I posted about, so they sound about right.
Which leads me to the thought that if it’s a well-known fact that KAPE functions on a low margin and therefore achieves less earnings per $ than the average for the industry, then gaining huge revenue to compensate must be their modus operandi - their edge in achieving increasing market share by being cheaper than the competition - and thus low earnings per $?
So, why doesn’t the market like that? I’ve back-read a handful of some analysts' reviews and ROE comes up frequently where they bemoan the lowly achievement in ROE but go on to highlight the increasing revenue (to compensate?)
Sort of like a Tesco of their industry? Pile it high and sell it cheap?
Why is the market behaving as if it’s a bad thing to operate on low margins like a High Street supermarket - and thus withhold the overdue re-rating due in the SP? Has there been a change in company culture, that the market dislikes?
The SP has been retracing for well over a year now - before that, it was years of a fantastic climb from the lowly depths up to record highs, before this current long-term retrace in the SP then took over.
Is there another reason the market is holding back on re-rating the SP?
Has there been a change in the business I’ve yet to find out?
That’s all I can come up with - somewhere along the line the company went for growth at the expense of profit margins.
the massive issue velo is that all your analysis is backward looking thus priced in.
Kape does not have the best cash conversion c. mid 40s but the growth and the valuation on conservative consensus warrant a buy.
Last post: ggrantsu, 25 Jan 2023 12:42
It is indeed and so annoying to see capital wiped off when you could buy cheaper. However...as we both know its impossible trying to time the market - all one can do is be lucky enough to get to invest in truly undervalued businesses where there is a real chance of significant multiple and earnings expansion over the medium-term. Definitely the case with Kape and CNIC....anything under 3 quid for Kape in my view is a complete steal...my average 2.40 and believe that it will pay in droves over next few years.
Ggrantsu, I was just venting. It’s so frustrating when you buy and then watch it immediately tank.
Saving some dry powder now for a lower top up. And also an entry point with CNIC.
Ha I feel for you Pompal!! Although frustrating....just keep in mind that this isn't some gamble in the dark. Company's valuation is continents apart from fair value - honestly in this UK small cap market with these kind of companies like Kape and CentralNic...I'm taking the view that I actually want to see the SP's crash...because its the closest thing to a money tree if one is patient. While these companies grow in high double digits organically and throw off cash...then I welcome being able to pay low single digit multiples to own them.
The moment I thought the fall had stopped and bought more, almost instantly a vertical drop. Shocking.