Kape Tech. Share Price (KAPE)

Why bother timing the market on such small margins? So what if it falls another 10 or 20% from here. We are looking at a possible world leader in 5 - 10 years and a multi billion dollar franchise.

It does seem a good price now, but it hasn't taken a hammering this year like many others stocks. If the markets weren't so soft, I would be a buyer now.

by Mark Watson-Williams as follows:

Https://masterinvestor.co.uk/equities/small-cap-catch-up-kape-itim-and-hsp/

"Kape Technologies (LON:KAPE) – cross-selling opportunities abound

I consider that the share price of this digital security and privacy software provider does not reflect its significant potential.

In the last few years, it has grown very substantially through both its organic and its acquired expansion.

It now has over 6.5m paying subscribers for its services.

Through that rapidly built-up platform the group is an excellent example of scalability.

Its prospects for cross-selling its various products and services expand massively as the group pushes its growth strategy.

And that market widens as the company and its various subsidiary operations develop and present new features for its products.

The customers of the group’s recently acquired ExpressVPN, the premium digital privacy and security player, for which Kape paid $936m, are being targeted with Kape’s other products and services.

ExpressVPN is an excellent fit into Kape’s business and has taken the latter into scoping the virtual private network’s 3m plus subscribers, some 40% of whom are based in North America.

Kape was already global, but ExpressVPN has really boosted its marketing opportunities.

This group will not stand still, it seems, and it is a fabulous money-machine.

The company’s NOMAD and joint-broker Shore Capital Markets last week noted that the group is now introducing several new features to its ranges, including: Threat Manager, a privacy protector; Parallel Connections, which optimises VPN connection time; and Keys, which is a password manager for applications.

Shore analyst Martin O’Sullivan estimates that revenues will increase this year to end December from $230.5m to $617.8m, with adjusted pre-tax profits more than doubling to $151.0m ($72.8m), helping to pump up earnings from 23.1c to 40.6c per share. That latter improvement was despite the massive equity dilution from the ExpressVPN deal.

For next year O’Sullivan goes for $697.3m of sales, $173.5m profits and 46.5c per share in earnings.

Those estimates convince me that I am right in stating that the shares of Kape Technologies are really quite attractive at the current levels, with its shares at 344p, which is a clear 100p lower than they were trading at in January this year.

I expect to see the next Trading Update in early July, by which time the shares could well be a lot higher."

FYI Shore Capital have issued an update note today reflecting the new products announced today, but also picking up on the cybersecurity sector comment:

"We note that KAPE also highlights that the cybersecurity sector is "delivering its strongest quarter on quarter growth to-date,and so the new privacy and security solutions could be said to be hitting the market at an opportune time".

For this year they forecast 40.6c EPS, rising to 46.5c EPS next year, i.e 37.6p EPS - a P/E of just 9.1.

It's good to see the variety and number of new digital security and privacy products being introduced by KAPE in today's announcement.

But just as interesting is the following, which hopefully reflects KAPE hinting as to the strength in current trading:

Https://uk.advfn.com/stock-market/london/kape-technologies-KAPE/share-news/Kape-Technologies-PLC-Kape-expands-service-offerin/88084165

"The launch of a number of highly innovative new products, in addition to enhanced features on existing solutions, is closely aligned with significant demand across the digital privacy sector. With the cybersecurity sector delivering its strongest quarter on quarter growth to-date, Kape continues to be firmly focused on delivering best-in-class privacy and security solutions that safeguard consumers' digital lives".