Member Info for bobocaca

It is wrong to undervalue Darktrace because of high inflation and interest rate for the following reasons:
- Darktrace is B2B, it is less sensitive to inflation than consumer facing companies
- "The company operates with a super high gross margin of 89.9%, which is one of the highest levels in the industry. " It is higher then competitors Crowdstrike(73%) and SentinelOne (63%) and is a lot more higher than consumer facing companies e.g. Tesco (6%).
- They have >$300 million cash, they won't need to borrow so interest rate won't hurt them

https://seekingalpha.com/article/4519791-darktrace-ai-cybersecurity-leader-with-thrilling-financials

Darktrace was outperforming the market until the 10% fall last week, after that it has been underperforming among similar tech stocks. Inflation/no-profit is not the main reason as other growth stocks are in similar situation. Investors, be it institutional or retail are hoarding cash now as shown in yesterday's extremely low volume. When not many is buying, then moderate amount of sell will cause SP to fall. No one is making profit to sell as this SP except for employees. I think everyone is now waiting for the July's trading update but I'm not quite sure what is the public's expectation - does it really have to make a profit right now?

However, I believe the company is in good shape. While Tesla and many big tech companies have either laid off employees and have hiring freeze, Darktrace is still expanding with over 100 job opening https://careers.balderton.com/jobs/darktrace. Most people just do not know how to evaluate a business (not share price). Don't know how much more the SP will fall, but I believe the rebound will be strong.

ijgs, I get it that shorters would want to close their positions but it has gotta be sellers willing to sell to make it happen and 12M is a massive volume. Or did they just keep trying their luck by entering large buy at UT everyday?

I've always wondered who's behind those UT. My conspiracy theory is - there was an agreement between two parties to trade after market closes on Friday, or the buyer learned that someone will be selling in bulk. So the buyer drove down the share price to buy them back in cheap.

... of 12M shares or £39M.

as predicted.

oldgold, what happened to Darktrace wasn't just market at play. It reached +4% in morning, then mostly flat in the afternoon while other tech stocks were deep in the red including Moonpig and Deliveroo which were named by Telegraph as the stocks to sell in high inflation era. If it was just the market force, then Darktrace SP would move roughly in sync with other tech stocks but it apparently wasn't the case. Since 2pm, someone constantly selling few thousand of shares to drive the price down. I bet there will be a large UT today.

Yesterday it took only about 1M+ shares to drive down the price which is under the disclosure threshold which is under the disclosure threshold.

Definitely a player manipulated the price yesterday but this morning looks more like panic selling by RI.

Darktrace was still outperforming the market till 2pm then all hell broke loose. I could understand the market reaction to bad news e.g. Autonomy, end of lockup period etc but it really hurt me when the SP collapses for no apparent reason other than the greed of the wealthy. If it was not short sellers, then there are better ways to sell shares without crashing the price.

I have no doubt in the company but I can't help to feel it is so unfair that some greedy, selfish people could just so easily humiliate a £2.5B FTSE250 company with so little money (volume).

This does not make sense. KKR has just bought shares, and the SP was +4% in the morning.
They are selling small quantity constantly to drive down the price. Looks like short sellers are in action again.

I gave up. I'll stop looking the SP.

Darktrace Named Winner of Two Global InfoSec Awards by Cyber Defense Magazine
https://www.darktrace.com/en/press/2022/430/

Lending, I was trying to say, people should stop bashing or discrediting a piece of article or opinion because of where it is published or said.

It is true many of them are rubbish but overall they are no worse than what you and I say in here - it is simply opinion, but the collective opinions are seemingly getting more positive. Even professional analysts don't get things right, with SP target range widely from 320p to 1000p, who would you trust to buy/sell shares?

Looks like many still don't get it, Motley Fool is a platform more like Medium, rather than newspapers or stock analysts. There is no such thing as "Motley Fool's view", each article is opinion of the individual writers.

As I could recall, all recent Motley Fool's articles (I think 3 or 4) are positive and nobody dispute about Darktrace's fundamental and certainly nobody call its technology 'snake oil' anymore.

I totally expected SP to fall today but to my surprise it finishes flat. There also wasn't UT today. Let's hope this is the bottom.

https://www.fool.co.uk/2022/06/13/1-cheap-growth-stock-to-buy-as-the-ftse-250-tumbles/

I don't recall seeing intra-day reversal like this. Wonder if there will be news release or RNS later today.

My guess is the person who bought large volume at UT on 31 May.

Afraid that is not the case. There's another big trade of around 1.5M in the morning at the same price of 374.9, so both trades add up to about 8M. Yes, someone dumped 8M shares first thing in the morning, they were just late reporting.

sigh...