Yeah I’m probably going to use thar strategy moving forwards but for the moment I’ve got to sit tight
I couldn’t help myself and did buy more today bringing my average price down a bit more.
If they are going to start a buy back programme as described in a post above, so I think the investors could see some positive reaction in its stock price. I hope so.
I usually put chunks of cash into different stocks creating a cross section of the market, but this is the worst performing one by far 
Exact opposite reaction.
They have announced this today, right?
I haven’t invested on this one, but I know how hard it’s when your stock goes down like that. I hope you recover that soon.
This was announced before the market opened today. The approval was given at the AGM a few weeks ago.
This is a company that has barely listed. This is not a good signal.
When a company has a very strong set of results with surplus cash it makes moves to return cash to shareholders. This is not what has happened here. Returning cash like this is considered odd - just as odd when a very senior board director sells hundreds of thousands of shares and doesn’t wait for the just IPO’ed company to grow.
The only upturn you are going to see on this companies share price is when it produces stomping results. Do a very basic DCF analysis (use the companies own growth projections) and you will see how much the company needs to produce to lift its share price substantially. If you use the numbers published so far you can also estimate, if those projections are realised, the time period it would take for the share price to hit, for example, £6.50 again.
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I am not aware of the company’s situation, but buyback programs are usually seen as a positive thing by investors. What’s so weird about that? In addition, the Director may have sold for several reasons.
Ok sorry, I thought I was talking to someone who knew something about the company. My bad.
No problem
Does Fair Value hold much weight for the analysis of share price? It’s something I’ve come across on Simply Wall St. I notice Darktrace is considered 1,161.6% overvalued (but then I expect that’s true of many shares at the moment).
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I was looking at a few comparable companies screeners and to be honest, I think DARK screens well against competitors such as CrowdStrike and SentinelOne. If my screeners are not wrong (and sometimes they can be), those competitors are trading at way higher price-to-revenue multiples at the similar revenue growth profiles.
I would argue that DARK just has the misfortune of being listed on the LSE where non-profit making stocks do not find favour with the investors / fund managers here, and that they have some negative narrative going on in the background with the Lynch dude and so on.
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yes. the DCF gives a good perspective of Darktrace’s price as it helps one understand how much consistent growth will be needed … helps to understand a key aspect of the business.
Do a DCF and then work out what P/E’s make sense on the LSE. A (trivial) range on the P/E will also help. The screens comparing with US companies is not going to help with either of these things.
IMO, the UK press has contributed to too much emotion on this one:
This company has to still prove it is a good company with a good future and the share price was simply sentiment driven in an environment where there are many serious Global competitors. It is notable that Berenberg didn’t negate anything in the Peel and Hunt note.
Lynch: well that may be a drag on the price for some people … but it is a nice excuse … nothing ever changed … the price hit £9.85 with that uncertainty.
I think it is always good to view a share from different perspectives: it allows me to take a view on the investment risks.
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Just wondering
Does anyone regard £3.97 as a buying opportunity?
Still seems very uncertain to me
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Not investment advice: I have a limit buy set up for £3.90. I don’t have much invested in DT but am averaging down.
No idea where the bottom will be.
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I would have said 380 was a good buy in, but how this has proven to just keep dropping (I made predictions further up), I won’t buy in until it reaches an all time low, maybe 330.
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