Yes very much a takeover target, I think that's what KNO management want. Go watch the Growth Strategy Update from May 2024 (https://www.knosys.co/knosys-webinar-growth-strategy-update/), it's all in there.
- KNO has chosen to focus on their Libero Library Management System (LMS) software which has a huge TAM and only a handful of vendors. It's the perfect vertical SaaS niche. In addition several of the mid-tier LMS vendors (KNO/Libero is a mid-tier vendor) have recently been bought by the 2 top LMS vendors.
- KNO is pouring $$$ into their LMS product (Libero X) to make it better than anyone else's. [They are then getting all this product investment back in an annual R&D rebate].
- KNO will then go after the installed base of their competitors (every library has to have an LMS so it's just a case of using Libero's better functionality to knock out the incumbents).
- At some point (probably won't take very long tbh) one of KNO's competitors or a PE company will see what KNO is doing & snap it up. Given the tiny number of shares on the open market the buyer will need to offer a significant premium to whatever the then-current sp is.
At the current mcap/EV ($8M/$4M) this is an extremely undervalued vertical SaaS vendor - well run, cashflow positive with a huge TAM.
Very few shares on the open market so it won't gradually go up - it will jump up in large increments from 4c to 5c/6c to 7c/8c to 10c+ as investors discover it & how undervalued it is given the future plans it has
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