Member Info for cefncribwr

.....I mean DT has good long term potential .....

Thanks all for your interesting observations. Looks like the two companies are not easily comparable.
Kape has certainly grown through acquisitions and has millions of paying customers rather than the 6000 or so corporate customers that DT has. I focus on numbers such as p/e and Peg values, so that points me to Kape although I appreciate that Kape has longer term potential.

Ignore the duplicate post !

That looks like an old article. Kape is one of Moneyweek's best investment ideas for 2023. I did hold Sophos until it was taken over and actually have some DT in my Sipp, but my ISA investment in Kape has been more successful. No harm in comparing companies on these sites, otherwise they just become echo chambers as previously stated.

That looks like an old article. Kape is one of Moneyweek's best investment ideas for 2023. I did hold Sophos until it was taken over and actually have some DT in my Sipp, but my ISA investment in Kape has been more successful. No harm in comparing companies on these sites, otherwise they just become echo chambers as previously stated.

Kape Technologies PLC is a cybersecurity company engaged in the developing and distribution of a variety of digital products in the online security space. Its operating segments include Digital Privacy - comprising the group's Virtual Private Network products which comprise Cyberghost, Private Internet Access and Zenmate and Digital Security - comprising the group's end-point security and PC performance products. It offers products that provide online security, privacy, and an optimal online experience. The company's products include CyberGhost, ReImage, and Driver Agent.

The above companies both operate in the cyber security field but I'm puzzled as to their respective valuations. At the last accounts, DT made net profits of $5.31 m but Kape made $32.55m. The respective p/e ratios are over a thousand for DT and 23.1 for Kape. Yet Kape is valued at little more than half of DT's valuation.
Genuine question - is Kape cheap or is DT massively overvalued?

Good luck but 'just bought' is normally a pretty ominous post on these forums!

From a post earlier this month:
I feel we have hit the bottom at 342 p and from here it’s to planet Venus or Mars or even the
Moon !

"Momentum, or the tendency for stock returns to trend in the same direction, is a major puzzle. In well-functioning markets, it should not be possible to make money from the naïve strategy of simply buying winners and selling losers. Yet there is extensive evidence, across time and markets, that momentum profits have been large and pervasive."

Just some sobering words to counter potential echo chamber sentiments:
Still an awful downward trend here. Rarely a good idea to buy a falling share.
The shift to value investing (which was out of favour for the best part of a decade) could easily last a decade. In the meantime, so-called growth shares lose 10% of their value to inflation each year without any dividends as compensation, even if they hold their share price. Personally, I think that a FTSE 100 tracker is probably a better bet than a share like Darktrace. It makes for fewer sleepless nights, and it's always nice to see dividends arriving in your account.

.......which is why I am shunning this share. Momentum is everything.

In the words of Warren Buffet, the trend is your friend. And the trend is decisively down.........

Mmmmmmm.............this share is resembling a lead balloon.

I have been watching these shares dive over the last year or so but can't get myself to invest. I had a bad experience with the old Woodford Patient Capital Trust, where there were too many unlisted securities which were illiquid and difficult to value, and I think the same seems to apply here. Once bitten, twice shy for me, I'm afraid.

If Darktrace is anything to go by, expect the shares to dip by at least a pound if there's no bid or counter-bid.

Seems reasonable, as an offer can be made until 5pm today.

I got the Kape article from the Kape chat site. It's not the full article, so obviously DYOR as always. I'm looking at the paper version now and it mentions for example that billionaire Teddy Sagi owns a 54% stake in the company. Sorry for the detraction from Darktrace but sometimes it's good to see other companies outside the individual echo chambers of these sites.

Just for information, here's an article from yesterday's ST re another UK company in broadly the same area as Darktrace, Kape Technologies:

'Stock picking in the London market feels like trying to track down a leaf in a hurricane. International businesses are gearing up to pounce on a fire sale of newly cheapened British assets.

As ever, technology is at the centre of the storm. High-growth tech companies have already been consumed by foreign suitors in recent months, including the software maker Micro Focus and cybersecurity firm Avast. France’s Schneider Electric is circling software developer Aveva, and a US buy-out firm is doing the same at GB Group, which makes anti-fraud technology.

Speculation is rife as to who is next. Any target would need to prove that it can grow over time.

Step forward Kape Technologies. The company is only five years old, but has seven million paying subscribers to its digital security software products, including virtual private networks, which encrypt and protect internet connections, and a string of software brands that protect against viruses, trackers, nosy apps and malware............

..........The firm’s price to equity ratio is forecast to be only 7.4 this year — “the valuation multiples appear extremely modest and attractive,” says Martin O’Sullivan, an analyst at Shore Capital.

Kape’s share price is down 43 per cent this year — it peaked at 444p in March and is now about 250p — a victim of the economic hurricane which contrasts to its operational strength

Investing in the firm is one of the few remaining opportunities for exposure to high-growth, home-grown UK tech: Buy.'

"The share that just keeps giving". I love the irony!