Member Info for bobocaca

Correct, sheltie, that's why there is no need to moan specifically about Darktrace. Apart from energy, practically every stock is down significantly this year including big name blue chips like Microsoft and Google. However, we should look past the gloom. Many UK stocks have risen a lot (>40%) in the last few months including THG, Ocado, Trustpilot and Wise, so maybe the worst is already behind us.

If you guys haven't noticed, a few weeks back Darktrace rose something like 10% in a day, that was because L&G bought back the 1% shares they sold earlier (see RNS a few days back). Assuming the similar effect, the share price should rise to 400p when the current 1+% short opening is closed.

sheltie, name me a few tech shares that have not been a disappointment in the past year.

JPM's short is over 25% in red now, I expect them to close it when SP exceeds 380p, which will propel the SP to 400-420p.

The market has certainly rebounce today. Ocado up 35% after winning new business, Cineworld up 165% (well, this is a special case as it emerges back from near bankruptcy). Overall market is up, it just seems to me that the market is no longer that terrified of interest rate rise. If I the shortsellers decide to close their short now, that could quite easily push the price north of 400p.

The US tech giants can't escape from low consumer spending and have been reporting less than expected results (with Apple as exception). By comparison, Darktrace's recent result are superb, in fact, Darktrace's earning reports have never let investors down so far. Anyway, Nasdaq rebounce strongly including Amazon, Microsoft and Google. Darktrace is holding up better than I expected. I feel the stock market has probably bottomed ... (well, until the next inflation/interest rate data...)

Boris pulled out from PM election, making Sunak the clear choice. I think market should rally tomorrow.

Also, giving share is more tax efficient. You save about 28% of NI (employer+employee), you only pay income tax (benefit-in-kind) on the market price difference , and any profit when you sell them fall into capital gain with £12k annual allowance. It will cost the company a lot more for equivalent nett cash if done via PAYE.

Well said Dam0. Those who have worked as tech public company will know, giving employee share is a very common practise. In the 2010s, I was young and needed money to buy house, so I sold all my stocks as soon as I got them. That was a period where stock price was stagnant. Now I deeply regretted selling them. Shares is part of renumeration to attract new employees, and also to incentivise directors to work hard to make their shares more valuable. If a company does not pay out share, they will have to pay higher salary to attractive talent which will hurt the company's profit.

I'm not sure what is the fuss about share buyback. Every company issue free or discounted shares to their directors and employees. Go google how many shares Elon Musk or other CEOs of big companies get.

If people believe GBP has bottomed out, the it may be a good time for interest party to start shopping.

Ade,
I see the shorts as plus. Price has gone up roughly 25% since JPM shorted, they will close the short to cut loss if it keeps going up, which will push the price even higher. Maybe that is what is happening now.

Yes, RNS is highly likely. Today's share price movement have reminiscence of TB leak. Either something of that nature, or large shareholder increases their holding.

Important thing is Kwarsi get sacked and mini budget is cancelled or watered down. One thing is for sure, Truss will not lead the party into the next election. If she is wise, she will appoint a puppet chancellor to continue the policy from last government and enjoy her remaining months at number 10.

oldgold,

Yes, share buyback will mean there will be £30m less revenue for this year, but the company did the same amount (if I remember correctly) last year, so the revenue growth rate shouldn't be affected much. On the other hand, the company has responsibility towards their shareholders, including us. From all the evidence of shortselling position, I think the shortsellers had limited capital in the region of under £10m, but they still caused huge damange in a down market, but the share buyback will act as a good deterrent. The £30m has the potential to raise the company valuation by hundreds of millions if not billion, I think it is money well spent.

That partly explains yesterday's rise and director's buy - insider knowledge / leak.

You can't really tell if a late reporting is a buy or a sell. However, for volume of this size and the SP went up, then it is more likely to be a buy, and vice versa.

I haven't been following news today. What happened? Why did stocks and pound rose? In anticipation of ousting of Truss?

US inflation data released.

Cyber security and digital migration – cyber attacks could be added to Mark Twain’s life certainties (death and taxes) and this remains the case, probably more so with Russia potentially aiming to attack more overseas assets. Add in the continuing shift in financial crime to the cloud and it is likely that spending in this area will stay strong. While further rises in interest rates have renewed the downwards pressure on tech-stock valuations, there does appear to be increasing stability. For cyber stocks one is still better off looking in the US listings at the likes of Crowdstrike (US:CRWD): the UK’s Darktrace (DARK) remains volatile but may attract another bidder.

Of course the numbers are Q1.
They said it in trading update and yearly report that revenue from PREVENT and Darktrace Federal would only start coming in in second half of the year.