Buy Signal on Cancom SE (COK-DE)

We had an Enter Long signal on February 16 th 2021, triggered by our system on COK-DE, Cancom SE the German IT services company.

Cancom is a €2.1 Bn market cap and a provider of IT infrastructure and services. The Company diversifies its activities into two business segments: Cloud Solutions and IT Solutions. The Cloud Solutions business segment mainly includes the Group's cloud services and shared managed services, including project-related hardware, software and cloud services. The IT Solutions business segment offers IT infrastructure and application support. The range of services offered by the Company's IT Solutions segment includes IT strategy consulting, project planning and implementation, systems integration, maintenance, training and other IT services, including the operation of full IT services. The company is mainly active in Germany and Austria.

Cancom is expected to post a revenue of c. €1.7Bn coupled with a c.€50mn net profit in 2020, corresponding to a +9% yoy top line growth and a +35% EPS growth. These trend looks set to continue in 2021, as cloud infrastructure & services growth was fueled by the « stay at home » theme, in the wake of the pandemic.

Short term catalyst : cloud infrastructure ramp up.

This signal looks consistent with the European Technology sector in Major Bullish Trend.