What you need to know about KYK, page-3

cant say I have heard of KOMPANY- but have heard of the others.

Big 4 in Australia are not really where KYK is looking to play- these players are already intrenched with the larger providers- however in saying that no one in Australia has really cracked the SME lending market from an automation perspective in my view- so all banks- whether they are large or small are looking for any means that can automate processes. Europe is however the real market for KYK.

KYK's product is basically the same as what the larger players roll out - its a register that taps into global public registers on directors and companies status- allows users to set up triggers to prompt them if something changes. This is really important when you are lending money because often changes in directorship or company structure are reportable events in loan contracts.

What no one (including KYK) has been able to do is find a way to do wthis with small mum and dad style business. Think about just how tough that actually is ... theres no public info on individual s for companies that turn over less than 50 million... put simply the data does not exist in many cases on a public register.

So what is KYK's advantage? its platform and price... it is purely a game of who offers a service that works for the best price. The more services you have- the better because you can throw different services in/ package up as an offering...look at the deal with Illion.. they are using us as a way to bolster their offering.

ultimately- KYK will get taken over....

my point here is that KYK has done very well getting into the clients they have- i think that the board is of extremely good quality and not likely to risk the back end of their careers on a dog.... they know the potential and what the end game is. KYK would have already had discussions with groups around mergers.. however these would have been informal.

Do remember Richard bough in personally- I suspect he gets that this is a space that is hot and can see that in time this company will get taken over.. much cheaper to buy existing tech rather than build it out. I would much rather see KYK go down the road of getting into different industries... think airlines/ transport … pretty much any business who's got an investment grade debtor book has a use for he softwear…. pretty important to know that the entity that owes you money for services still exists or has not changed its address!

KyK does not screen transactions...KYK is all about understanding who you are trading with- not what specifically you are trading. Its crucial - something that has to be done on day one when you extend credit and pretty regularly to ensure details are current there after.

Sit tight in my honest opinion - you will do well