Pav - I dont actually read the SH posting boards but I do use SH for its headlines and its IPO links. This article is on their fronta page
stockhouse.ca
And here it is in its entirety
KCA Security Solutions Offer "Amazing Potential" To Stop Hackers
Kasten Chase Applied Research
Data Communications/Security
The rash of web site security breaches experienced by major portals like Amazon.com [AMZN], Yahoo! [YHOO] and eBay [EBAY]
has emphasized the need to improve security so hackers do not inconvenience customers and companies. Enter Kasten Chase
Applied Research [T.KCA], an incubator of mission critical enterprise solutions in the areas of wireless data communications and
Internet security solutions. KCA stock has been on a tear of late, gaining $1.08 in Thursday trading to close at $2.45 per share.
Friday, the stock dipped slightly, but remains far above its mid-December 1999 low of $0.41.
KCA has the backing of the Department of Defense and the USDA, both of which licenses the company's technology, and the
National Security Agency (NSA), which tested the security technology for two years. KCA is close to passing the third and final
phase of tests. As 'Matchbox' says:
"They have the only commercial product that passed this testing. Given the length of time required to test, this is quite an
endorsement and a barrier to entry to new entrants…Given the recent hacking, the security issue is back at the forefront and these
guys have the goods."
'investor23' believes KCA is well-positioned to trade higher thanks to the spate of hacker intrusions. The timing couldn't be more
perfect:
"…with all this security talk over the Internet, Kasten Chase has released a remarkable news release about their high security data
programming and wireless Internet access. Amazing potential here…"
The news release 'investor23' refers to is one issued by KCA Thursday announcing its new focus on Internet access and data
security. Some posters fear other companies will try to jump on the Internet security bandwagon, but 'Purveyor' reassures with this
post:
"Unfortunately (for any up and comers) KCA has put in the time with NSA to get approved. Others will be years away. In a market
that is happening today...where will security conscious groups go...KCA! Ahead of the curve!" 'Matchbox' adds:
"Kasten is more advanced than [the] majority of the hot plays. Wireless is KCA's bread and butter going back 5-6 years. Data
security is well advanced as well. They are already selling to the US Government Departments and have passed first two phases of a
three phase testing program by NSA. They have the first commercial product that passed this vigorous testing that takes over two
years. So they are rock solid in terms of technologies, but we're a bit thin on the marketing/PR side. The marketing side is looking
better and better every day as a number of firms are coming back to them for further talks after the Y2K non-event."
However, posters like 'Kindling' feel what is really holding back KCA is its management team:
"I can't speak for the others who have been critical of KCA management. I assure you that I do not associate the price of the stock
with how well the company is being run (especially with a relatively small, loosely followed company like KCA)…MY frustration with
management (above my well-documented irritation with these perpetual pre-news run-ups) is that they have been unable to do the
following:
1. Grow the business over the past three years, with essentially the same products and technologies that we all hold in high regard.
2. Curtail expenses in conjunction with reduced revenues (ie. Bridge)
As for the company's recent prosperity being a reflection of good management, I like to use the following analogy: Mr. Bill Clinton
'leads', arguably, the strongest economy in the world. However, I do not attribute the US economy's strength to his policy or
actions…
That said: Here's to extraordinary prosperity IN SPITE of the leadership..."
'presto10' believes "…it will take [him] a heck of a lot longer to get excited" about KCA's news releases and recent rise in share
price. He is looking for more substantial evidence of what the company can do and offers this "reality check":
"…The reality is that [management] has an absolutely horrid record of follow through. Great on announcements, but there's a reason
the stock's the pits…If people jump in based on another 'leading technology' company announcement, one with this company's foul
record, I can't help them. I hope I'm wrong, but where I come from, for every buyer there's a seller. And there's a whole lot of selling
going on."
The KCA "longs" remain faithful to the company and feel the recent announcements and stock price mark a "turning point" for the
company:
"I hear a lot of complaining here about the management from early KCS buyers," posts 'Bandicoot'. "But all things change sooner
or later, and I think now is the turning point for KCA. The time is just right. There are a lot of companies just talking about wireless
and they cost much more than KCA. I am not saying that's a good thing, but just take a look at KCA's hardware and software
products, and there is no comparison with those 'no substance' guys. My prediction: $5 within a few weeks."
'ruby21' is certain:
"…Yesterday's release was not news. There must be a major release coming with a major [government] contract. They did attract
everyone's attention. If they don't follow up with major news soon, they are really sick guys. With proper timing of news, this stock
should hit 10 dollars quickly. Major possibilities include final approval of RASP for top-level security by NSA and a major Versapath
contract worth 25 million dollars."
'Santa18' agrees, calling for another PR, a request management may also hear:
"Lots of people are just learning about this company, and their product and services. I think that this would be the perfect time and
climate to post an announcement about the pending trials of KCA's Versapath with the NSA...This could be huge news that would
push this stock. An NR about KCA providing Internet and intranet security to the US Government would be huge given the recent
scares about hackers...WE NEED THE PR NOW!!!"
Kasten Chase announced late Friday a $5 million special warrants offering to help fund its "new focus". Post your predictions for
Monday's opening price. |
