I'm quietly bullish on KYK - particularly for this coming year. I'm expecting it to be Kyckr's best year to date business performance wise. 3 key reasons that make me positive on the stock:
1. Growing business momentum with Sales growth accelerating quarter on quarter over the past 4 quarters. This is reflective of a strong product coupled with the right Sales strategy. This business momentum will only improve in CY22 as UBO Verify is rolled-out and the updated KYC platform is also introduced. The other driver of business momentum in CY22 will be expansion of target markets - i.e. moving from just servicing regulated financial services firms to eCommerce players, legal firms, etc. Arguably, this push is coming from KYK's largest shareholder - Richard White.
2. Very strong management team underpinned by the founding team of Class Super joining Kyckr in late CY21. The ex-CEO is now Kyckr's Chairman, the co-founder is now Global Head of Sales for Kyckr, and the ex CFO is now CFO for Kyckr. This is the team that took Class from scratch in 2005 to a $350mn business today.
3. Continued accumulation by Richard White - this adds credence to Kyckr and it's potential as a business and investment opportunity. No doubt Richard sees the potential for Kyckr to become a major player if it rolls-out the right product innovation and expands into the right verticals (eCommerce firms, etc).
There'll always be the possibility of a takeover given the large number of partners Kyckr has and the more general industry consolidation. However, I wouldn't base my investment case solely on the potential of takeover.
KYK Price at posting:
5.1¢ Sentiment: Hold Disclosure: Held
