Hi All,
I recently invested into K2F and have noticed its lack of discussion, I thoughtI would start a new thread of why I invested to help others. I definitelybelieve that K2F has steady growth for reasons stated below, with potential formulti-bag status. Feel free to share your own views on this stock. Cheers!
Overview
K2fly Limited (ASX: K2F)is a rapidly growing, Market leader, ASX listed Tech company that has largelyremained under the radar of investors (evident in a lack of discussion/ramping onFacebook). Despite this, in the last 1 year the stock is up exactly 100%.
It has a small marketcap of 33.76m.
The company is in aphase of rapid growth evident in the consistent market updates of new customerssigning 3-5 year contracts with them (recurring revenue always good) and theyare currently investing all profits back into the company to expand more(growth phase). It is a stock with huge growth potential, which is why I haveinvested.
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02337960-6A1018935?access_token=83ff96335c2d45a094df02a206a39ff4
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02350678-6A1023397?access_token=83ff96335c2d45a094df02a206a39ff4
What do they do?
The company provides services to the mining and resourcessector, through software and reporting services, they service some of thebiggest names such as Rio Tinto (RIO), Fortescue (FMG), and South32 (S32).
They have a large addressable market with the push todigitisation speeding things up. There is an even better thematic play here aswe know resource stocks are very bullish right now with the demand for Oil,Lithium, and other rare earths increasing rapidly. As these miners increasetheir own profits, they have more to spend on technology as they focusattention on their core business, outsourcing technology becomes moreappealing.
K2F has close ties with SAP (127b Eurocompany) and proudly K2F’s App is 1 of only 11 SAP endorsed apps. Thismeans that SAPs Sales Team are now compensated to sell K2Fs services.
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02313853-6A1009104?access_token=83ff96335c2d45a094df02a206a39ff4
They have a debt free balance sheet.
Not only do they have a huge addressable market from signing newclients, but with the clients they currently have, huge cross-sellingpotential.
Substantial Shareholders
The composition of ownership in this company is what makes this stocka particularly compelling investment. The Top 20 Shareholders of K2F hold 54.83% of shares on issue. Whilethis evidences the high level of confidence insiders and larger investorshaving in this company, this obviously means reduced liquidity, making it lessattractive to the day trader.This iswhy I believe this stock has not seen its rise to fame yet, because it is so tightlyheld, the average investors are not aware of it yet!
Financials:
They have an experienced management board, and have recently thisyear have made a strategic acquisition recently to accelerate growth further.
See: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02349484-6A1022983?access_token=83ff96335c2d45a094df02a206a39ff4
I recommend reading the most recent reports to see the info foryourselves! As always, these are my views and reasons for investing, DYOR.
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02233720-6A978533?access_token=83ff96335c2d45a094df02a206a39ff4
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02335754-6A1017876?access_token=83ff96335c2d45a094df02a206a39ff4
(20min delay)