KX/FD Shares Fall 30%
November 25th, 2018 by admin
First Derivatives Shares have fell back to a price last seen in February 2017:
One cause of the fall has been a damning article by ShadowFall. Their main arguments are:
- First Derivatives was being priced highly as a software company
- It is not a software company but a consultancy.
- Previously good years were due to outside factors (property prices and government grants)
- They have made a significant investment in KX which may itself have stopped growing
The 47 page report goes into a lot of detail, to give an idea here’s one of the charts:
He shows numerous statistics for FD compared to it’s peers, operating margin, gross margin, revenue, headcount. It’s worth a read if you have an interest in kdb/KX/FD.
Related Links: Shadowfall tweet, Independent.ie.