This is the weekly chart showing the upward trend. Note there have been a couple of these that ran up a reasonable amount for the profit takers, but then failed for we long termers. They lasted 3 weeks - so I suggest if this run can make 4, it may go on from there. But most significantly (if you believe in this stuff) is th double bottom at 16c - first bottom was March-May 2020 (peak Covid anxiety) with a triple tickle before giving way to the big rise commencing around 8/5/2020. The second big bottom was around 5 & 28/12/2022, when a mini double bottom occured and ahs been confirmed by the daily chart today. My understanding with double bottoms is that the further apart they are (within limits) the stronger they are.These two are about 31 months apart, and if they transpire would be very strong. Typically you would expect the SP to rise to the equivalent of 2 times the range up and down. In this instance 16c to 104.5c & back to 16c. Range is 88c - x 2= 176c + 16c (base) = 192c. All theoretically possible. Time wise - I struggle with this side. But I would be thinking along the 14-17 month time frame.
So is there any fundamental rationale to back up this theory. I would say so. - things are starting to sort themselves out sat wise. - ability to get data from as few as 2 sats and as many as 4 - data is flowing and being assessed by customers. - genuine interest by US govt - repositioning upper management would indicate there is a reason to do so - US wise - continued growth in staff and enterprise - ability to process 3rd party data - has to help Kleos become a cog in many more "machines" - continuing interest by 3rd parties to collaboarte with Keos - I will not say breakeven is imminent as we know how that goes. However like any drought the longer you are into it the closer you are to it breaking. I supect we are now closer to the end than the beginning.
Having watched new IPOs over the years the cycle is often repeated and predictable. Great concept ==> proven concept ==> go to market ==> euphoric response ==> the hard yards to make it work & convince industry ==> mixed results & cash burn ==> SH disappointed with time frame ==> SH disillusionment ==> on the nose ==> negative reality (onto the scrapheap) OR positive reality ==> good news starts to flow ==> jaded market unconvinced ==> SP continues to struggle ==> positive story builds until secondary investors (ones with no history with the company) start buying ==> SP overreacts as investors scramble to get on board ==> SP retracts to reflect the fundamental value of the company and finally the SP starts to track the ROI. I think we are where good news starts to flow. It is the turning point for the stock I believe both technically and fundamentally, and they both seem to be aligned at the moment. How the market reacts will be determined by the amount and quality of the good news - especially contracts and cash flow - Kleos can generate over the next 1-2 years. If Kleos can build some momentum, the SP will easily slingshot up towards the $2 mark, and possibly beyond. Anyway that's the way I see it. I bought a bunch more the other day at 20c, which I am very happy with. I am less happy with the ones I paid 58c for !!! Watch this story closely now is my advice, because one announcemnet could easily move the goal posts. As always, this is indeed IMHO and so DYOR.
KSS Price at posting:
21.5¢ Sentiment: Buy Disclosure: Held
