The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
There have been constant sales of a low hundreds shares at a time. It is really low volume, the objective is to lure people to sell. If most of the people hold, then this tactic wont succeed (but there will always be someone who will sell).
Yes, both FTSE and American markets are up a lot today, so I expect Darktrace to not drop too much either despite the shortselling.
The company is in good shape, there is no need for speculation. Period.
Don't bother about the share price movement. As you all know, British hate tech stock. It may only start going up when Nasdaq/US recovered. But most likely scenario is sudden jump of share price because of acquisition or winning US federal contracts. I. I hold no high hope for the share price before any of those happen, I have prepared myself mentally and financially to wait for 1 year.
DoS can take down a server making it inaccessible to users but it doesn't hack into it to steal information. Analogy is you seal the door into bank, blocking everyone from entering including yourself. This is not the area that Darktrace plays in, which is like using CCTV to monitor the outside for suspicious people, and inside the vault to detect if it has been broken into.
It is getting more difficult to predict the share price. Darktrace used to mostly correlate with Nasdaq but today it moves in tandem with FTSE 250 index. Pound is up 2% to reach 1.1 USD, so difficult to tell whether Darktrace will go up with pound, or down with Nasdaq. Coming week will be turbulent, I'll try not to look at the share price before the trading update.
However, not all hope is lost. Wise IPO'ed at around same time and fell massively from peak of 1100p to 300p much like Darktrace. It started picking up since July is now 130% up at 690p. Darktrace was on similar trajectory but unfortunately the TB collapsed talk interrupted the momentum. I don't know when or what could trigger the rally but we know it is not impossible even in current market climate.
Unlike door-to-door salesmen, you don't want the CEO to reject the offer at the door, she will have to inform the board. That's what she meant by 'legally'. Hope they can do better at keeping secret the next time around, yes I'm sure someone will come knocking agian.
https://www.bloomberg.com/news/articles/2022-09-28/darktrace-ceo-says-unfounded-criticism-is-deeply-frustrating
Darktrace Plc Chief Executive Officer Poppy Gustafsson said the level of “unfounded criticism” the company comes under is “deeply irritating,” if inevitable for a publicly traded business.
“The thing that I always come back to is that we have 7,400 customers,” she said at the Bloomberg Technology Summit in London on Wednesday. “That means 7,400 CSOs and CIOs that thought, ‘I want to see Darktrace working in our business’. That’s the key indicator for me.”
Darktrace’s shares fell as much as 33% earlier this month after US private equity firm Thoma Bravo said it did not intend to make a takeover offer for the cybersecurity company, after it was earlier reported to be under discussion.
The company has also been targeted by short seller Shadowfall, which has confirmed it had taken a position in Darktrace. The Telegraph quoted Shadowfall in January as saying that the quality of the Darktrace business is “watery-thin, driven by an aggressive, promotional, sales focus, which we doubt will stand the test of time.”
Read More: Darktrace Shares Drop 33% After Takeover Talks Collapse
“These conversations leaked at a very, very early stage of engagement with Thoma Bravo,” Gustafsson said in a separate interview on Bloomberg Television on Wednesday. “That unfortunately became public, and in September we said that those conversations had ended.”
“We have a legal obligation to explore any such offers but if I were sat where Thoma Bravo is, I would be looking across at the UK thinking it’s a very cheap area to be able to come and potentially do some takeovers now,” she said.
Founded in 2013 by mathematicians and cyber-defense experts, Darktrace uses artificial intelligence to check for hacks and suspicious data leaks. Its founding investor was Invoke Capital Partners, an investment firm created by embattled British entrepreneur Mike Lynch.
Poppy's share buying is not huge amount, compare to the ones she sold and received for free but that is a good gesture, showing she at least try to do something to steady the SP. I'm not sure how to make such proposal to the board, but I would like to see the directors' renumeration linked to the share price, like Tesla did to Elon Musk.
This is a country where City boys happily shorting pounds, disregarding the interest of hundreds of millions of people for their own financial gain. There is no moral compass in the City, and as BoE pointed out, the market is dysfunctional now.
Darktrace is not loss-making growth stock with unproven products and markets, but the 'market' doesn't care any of those. The shortsellers will just keep badmouthing Darktrace and the media buys it. The only saviour to get the share price above 400p is American acquirer. I pray for that day to arrive in next few months so we could all have a good Christmas.
sheltie, analysts make assumption. Berenberg is on the most optimistic end, considering mainly from business perspective. On the other hand of spectrum is JPM which include other factors like Mike Lynch. That gives you the bound of 320p to 600p. We don't know what is true value, but it gives some guidance, then you should buy when it dips below 320p and sell when get close to 600p.
Look at chancellor and all the central banks around the world , the so-called experts is f******g up the economy so badly. Let alone the analysts. So, the conclusion is to trust no one.
The market collapse in the morning and bring everyone down with it. As usual, there were constant sell of smallish volume trying to bring down Darktrace's share price but what was unusual is this time there seem to be an opposing buying force. The spread was large and the share price swinging +-2% with every buy/sell. Eventually, the buying force crossed the line and won the tug-of-war, resulting 500K volume in first hour, that surpasses the volume from yesterday (before UT and after market). I can only attribute this to Poppy share buying news.
https://finance.yahoo.com/finance/news/bt-tops-list-cheap-uk-050000054.html
Pound is doomed. Both the government and Bank of England say they won't do anything till November. Loss making tech companies with debt might keep tumbling in the coming 2 months until interest rate is raised. On the other hand, the market should see that Darktrace is debt free and chances of getting acquired only grow higher as pound falls (finger crossed).