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Nasdaq stage the biggest rally in the year. I haven't seen Nasdaq bluechip stocks rise >10% for a year. It certainly looks like a market reversal to me. This can force JPM to close their positions within days if not weeks, and push Darktrace to 420p.
Considering Darktrace today's volume and share price rise are quite modest, there are still quite some room to rise. On the other hand, today marks 5 days up in a row. It looks like it can continue the winning streak and hopefully finishes above 385p (the resistance) tomorrow.
Here is another misleading article from the Fool
https://www.fool.co.uk/2022/11/09/should-i-buy-these-uk-shares-today/
"Valuation is difficult, with no profit expected this year. But forecasts suggest a tiny one for 2023, followed by further earnings growth."
Darktrace is already profitable in 2022. There is zero credibility in Motley Fool. I don't even bother posting them here.
Mike Lynch, the technology entrepreneur battling extradition to the US on fraud charges, and his wife have launched a surprise rebellion over executive pay at Darktrace, the cybersecurity company that he helped found.
Almost 21 per cent of voting shareholders opposed Darktrace’s remuneration report at its annual shareholder meeting this week. More than 70 per cent of the votes against were from three shareholders, including Lynch and his wife, Angela Bacares.
Darktrace has appeared to distance itself from him in the wake of his legal problems. Lynch, 57, faces extradition to the US after he lost a long-running fraud case this year. He was accused of inflating the value of Autonomy, another technology company that he founded, before it was sold to Hewlett-Packard in 2011. He stepped down from the Darktrace board in 2018 and from its science and technology advisory council this year, but he and his wife are still major shareholders, with a combined stake of 12.1 per cent worth about £300 million in the £2.5 billion group.
In an interview last week, Poppy Gustafsson, chief executive of Darktrace, said: “Nine years ago he was a founding investor, but that has passed and we are a standalone business . . . He doesn’t get involved, I don’t see him.”
Gustafsson, 40, was paid a total of £12 million in Darktrace’s last financial year, including £10.7 million in long-term share awards linked to the company’s float in London in April last year. Cathy Graham, 62, chief financial officer, was paid almost £9 million, including £8 million in share awards.
Darktrace, based in Cambridge, uses artificial intelligence to detect cyberattacks and vulnerabilities in computer systems. Its directors and advisers include Lord Willetts and Amber Rudd, former ministers, and Lord Evans of Weardale, an ex-MI5 director-general.
Shares in the company rallied strongly last year after the float, before falling back, and fell sharply in September after Thoma Bravo, the US private equity firm, walked away from a potential takeover bid. However, the stock remains above the 250p float price, and closed up 6¼p, or 1.8 per cent, at almost 349p yesterday.
Darktrace is understood to have met shareholders including Lynch before Thursday’s annual meeting in London, where he is thought to have discussed the company’s growth share plan, which was behind the bumper pay award. Darktrace said its remuneration committee had written to major shareholders before the meeting “explaining the decisions made by the committee during the year and how it intended to operate the remuneration policy for the year ahead”.
It added: “The remuneration committee chair offered to hold meetings and calls with shareholders. The remuneration committee was comfortable that overall those shareholders that the remuneration committee engaged with were supportive of the Darktrace remuneration arrangements. The remuneration committee will seek to engage with those shareholders who did not support
sheltie, I was mad when the SP fell to 280p for no apparent reason (hope it won't happen again) while other stocks were business as usual. However, when I look around today, especially Nasdaq, I'm feeling content with Darktrace at the moment. As of today, Darktrace is above IPO price, I can't recall other tech stock IPO'ed in last 2 years that is above their IPO price.
In about 2 weeks time, the government will announce their fiscal plan, hope that can rally pound and the market. Then rate rise decision in another 2 weeks time. These 2 events will primarily decide the SP ending this year. Let's hope you get it right that it ends up at 420p.
I wouldn't say I'm happy with Darktrace's wild swing but it is doing not too bad either compared with UK or US stocks. Many US stocks have just reached 1 or multiple years low; while UK stocks have probably experienced that a few weeks earlier after the mini-budget. We should be grateful that Darktrace has just achieved profitability, otherwise it will suffer bigger fall like Crowdstrike and SentinelOne in last few days.
"Measured by gross profit added/opex, Darktrace is best in class, along with CrowdStrike."
https://www.lse.co.uk/news/DARK/numis-starts-coverage-of-darktrace-at-buy-zcvlnapa8gw0ufo.html
Good find, onsolidground.
You can view the latest positions on https://www.shorttracker.co.uk/company/GB00BNYK8G86/
It surprises me that it is Marshall Wace rather than JPM who reduces the short, as they started the short later when SP was about 340p. They're not in big loss but surely now they have more favourable view of Darktrace share price.
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.