ITE & E (ITE) is Potential Superstar [Archive] - Page 2

Flying Goat

31-10-2006, 10:20 PM

quote:Originally posted by underground

Heya Guys..

Hit up google and found a link with Ellis Bugg, IT&e and Microsoft... :)
(read the testimonial.. and look under "partners" )

http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=51288

Thanks Underground

Good post and schmick (good) username [8D]. I do agree with treadcarefully in that it is rather out of date but also think it is a great and necessary read for anyone considering investing, or currently holding ITE becuase its a good lay mans terms description of where part of their CURRENT COMPETITIVE ADVANTAGE LIES for ITE.

Treadcarefully, my thoughts are that although the product may come under a different name now, as I understand it the concept of using multiple servers as aopposed to one big old linux beast is part of where ITE's approach has been so successful.....

Cheers
FG

PS Looking forward to some M&A or AIM announcements soon...[:p]

David Hardman

31-10-2006, 10:35 PM

FG

You reckon It&E have a competitive advantage based on a 5 year old article!.

Hell they only had to improve on the results produced by an internal developed system (probably years old) hosted on a sh1ty old Sun Box. As as for using Microsoft for clustering. Come on. Linux/Unix is by far a superior in this regard.... and a damn sight cheaper.

This article shows its age. It was released when MS where making all attempts to discrediting Unix/Linux. They have lost that battle and have retreated back to the desktop where they belong.

So in 2002 it took 13 hours to do their risk calculations. With Moores law (and a change in platforms) I'd be surprised if its not possible to do these calcs in near realtime on budget hardware! (sub 10k). If IT&E still have a competitive advantage they would have to be at this level now.

I agree IT&E does looks interesting but this old article does not provide any additional info.

underground

31-10-2006, 11:06 PM

David...

this is not a debate of who's Operating System is more advanced..
this is a software solutions company, and from my understanding there software is JAVA based (based on the job vacency's on their website.. which by the way are a good indication of how well the company is doing..) which means it is PLATFORM INDEPENDANT.. (can run on *nix variant or windows..)

so the question is WHY choose Microsoft (or Micro$hit as david thinks)

so heres my take...

partnering with microsoft has clear cut advantages.. they have a working relationship or possible reference any country where microsoft is located.. (god knows where they arent these days..)

take small cap techie's like symantec... (makers of Norton AntiVirus) they had a relationship with microsoft and what happened as a result of that?? microsoft bought them out !!

ok this article is a few years old.. and in that time what has happened to the price of technology...? its gone down

so how will this effect the payback period?? ..

this is the supply and demand model guys... as the cost of technology has gone down and the firm has acheived economies of scale you can see that they are bagging more and more contracts..

im guessing.. banking systems tend to have a long shelf life.. just try sending a wire transfer to south africa for instance.. (takes longer as it has to go through an intermediary bank that has older compatible systems.)

they would generally upgrade in "waves" whether it be for regulatory compliance or competetive advantage..

i personally think that IT&e are currently riding this wave.. and its gonna get a whole lot bigger before it crashes into the rocks im sure..

wns

31-10-2006, 11:18 PM

quote:Originally posted by David Hardman

FG

You reckon It&E have a competitive advantage based on a 5 year old article!.

Hell they only had to improve on the results produced by an internal developed system (probably years old) hosted on a sh1ty old Sun Box. As as for using Microsoft for clustering. Come on. Linux/Unix is by far a superior in this regard.... and a damn sight cheaper.

This article shows its age. It was released when MS where making all attempts to discrediting Unix/Linux. They have lost that battle and have retreated back to the desktop where they belong.

So in 2002 it took 13 hours to do their risk calculations. With Moores law (and a change in platforms) I'd be surprised if its not possible to do these calcs in near realtime on budget hardware! (sub 10k). If IT&E still have a competitive advantage they would have to be at this level now.

I agree IT&E does looks interesting but this old article does not provide any additional info.

I agree, keep it in perspective. Four years is a LONG time in the IT industry so you can't give much credence to an article from that long ago. Servers usually get replaced every three years and / or get upgraded along the way.

TheBossMan

01-11-2006, 02:09 AM

quote:Originally posted by David Hardman

FG

You reckon It&E have a competitive advantage based on a 5 year old article!.

So in 2002 it took 13 hours to do their risk calculations. With Moores law (and a change in platforms) I'd be surprised if its not possible to do these calcs in near realtime on budget hardware! (sub 10k). If IT&E still have a competitive advantage they would have to be at this level now.

This is in line with my previous comments:
-----
Posted - 25/10/2006 : 9:07:49 PM
----------------------------------------------------

A key point of difference in Razor is its computational capabilities re: exposure calculation. The product is better than its competitors simply because Razor requires less processing speed. (i've paraphrased some of the above from an article in ITE's web site re: award from Risk magazine)

If technology improves further (as they usually do) and the costs for distributed computing and parallel procesing come down, won't this competitive advantage be negated?
--------------------------------------------

gjc

01-11-2006, 02:45 AM

Thanks for the article, Underground.

I think that the article - whilst dated, and coming from MS and Intel's point of view - is still of great interest to us now.

Firstly, it points out the fact that it doesn't matter whose hardware you are using or how much computing power you have if you don't have the software and systems in place to actually let you make use of that computing power and then integrate the computed results into your day to day business. This is what ITE's solutions do for their global financial services customers, who have the most sophisticated computing requirements and systems imaginable. I feel the article acknowledges that it was ITE's unique ability to actually make use of the computing power available in MS/Intel's linkable servers that allowed the CBA to get the results they were after.

Secondly, it gives us a good snapshot of how ITE used to do business before they restructured. They used to develop and implement custom software programs and systems for clients, but then leave the on going goodwill (ie. value) in the hands of their clients because they were could not hold on to the intellectual property of the software/system they had just developed and implemented for ther client. The restructuring of ITE has allowed it to develop a suite of proprietary software products that can be sold to their clients for an up front fee, they then charge for implementing the software and integrating it into the customer's systems, they can then charge an on going license fee, and they then also have the opportunity to expand on the original sale by expanding or enhancing the functionality of the original system and/or selling the client additional complimentary software from ITE's growing suite of products. This is a much, much stronger business model.

And thirdly, the article also let's us see that a well respected and credentialled former client such as Ellis Bugg at the CBA, who would have an intimate knowledge of just what ITE can do for their clients and a better understanding than most of the unique needs of ITE's global financial services clients, has been so impressed by his dealings with ITE that he has thrown his lot in with them for the future. This is a phenomenom that we have also seen with other equally well credentialled individuals such as Greg Meekings, and various broking, consultanting, reselling, software developing, etc, etc companies who have chosen to partner up with ITE.

Thanks, again for dredging up the article, Underground. It helps strengthen my resolve in my belief in the bright (not too distant) future prospects for ITE.

Regards, GJC.

tommy

01-11-2006, 03:36 AM

Very healthy discussions going on here, keep up da good work!

As for the argument that "technological progress will eventually make ITE's technology outdated" is quite speculative in the sense that we are talking about a solution that can NOW meet the Basel II risk management requirements before the deadline (within two years). A rival company may indeed come up with a better product before that timeframe. Technological progress may accelerate to make ITE's product less competitive. But think about it: if you were an IT manager of a financial institution, will you sit on your **** knowing that there is a product out there that will improve efficiency, risk management and compliance with Basel II?

Additionally, why should financial institutions wait around and waste time as the deadline gets closer, if one is outperforming established competitors' products?

We are not talking about millions of dollars here, we are talking about squillions of financial institutions' money that are redefined under the capital adequacy requirements under Basel II. This kind of short-term global institutional change in the financial sector occurs only once in a decade (or less!)

I still believe ITE has a lot to prove, but I am certainly betting that the upside is greater than the downside. Gee, I love spec techs:D

TheBossMan

01-11-2006, 06:54 AM

tommy - are you then suggesting that IT&E has around two years to make hay, lock in clients, and establish 'perpetuity' contracts (leading to a different comp. advantage) before technology catches up and ITE loses its current competitive advantage through product differentiation?

In my view, IT manager's input to this decision is usually restricted to technology & support aspects - the 'business' (eg. risk managers) would have more say in these matters. Thats where the relationships and marketing have a better chance of succeeding, rather than the actual product's competencies.

robbo

01-11-2006, 01:04 PM

it&e (ITE)

Good Morning everyone..

what a excellent discusion.....

A famous Venture Capitalist;(Andy Bechtolsheim ), who was the very first Angel Investor, to 'back' Page & Brynn.... of Google fame [:0]!!-- ... back in the late nineties -- with initally, US $1 million and then 9 months later, with US $20 millons (incidentally, this guy Bechtolsheim ...

.... certainly, history proves, had the Midas Silicon Valley touch, as was on the Board as a founding financical VC also for Sun Micro Systems and Yahooo)..... a few years before...

Anyway, this Venture Capital guys, Andy Bechtolsheim ....

..... had a famous saying and metaphor -- .... about the developmkent of Revenue and Profit flows with such relatively new real potential genuine Software and Internet based companies ... (Google's first trading profit ...was $7 millions.... btw)...

And it went something like this....

With first Revenues/Profits it is, (in his view) like a cloud which becomes a light mist and then just a few sprinkles or faint fa;;ing rain- drops .. firstly intermittent and patchy... noting much...

Then it becomes a sprinke.... on and off, but a bit more; then ....the first rain drops ...

Then Bechtolsheim said, it becomes a summer shower, and emerges as a short burst of rain with the likelihood of developing ionto someting more.......

And, as the 'clouds'--- of potential (in the pipeline)-- revenue grows and grows, Bechtolsheim recounts, and the sales demand and the new contracts pipe line becomes more pregnat with possibilities--
.

...- -- it becomes;.... a stronger and steadier heavy healthy rainfall and then it really contiunues to settle in...into it becoems a dam filling down-pout--whcih breathes life into all the streams and fields & eco-system around it .....

--... And then, Bechtolsheim concluded, as the rain becomes more prnounced and certain; it then just really BUCKETS .... down ....:):)

For mine, this Bechtolsheim (Venture Capitalist) metaphor/ analogy; ....is now.... indeed, what we are currently seeing steadilly .... and increasingly .....movre quickly.... now.... unfolding with increasing speed, with it&e... (ITE)...:)..

So then, imo, Where are we now ..... [?]- ?? [?]

We are, imo in the very brief & short, 'window of opportunity '-- which is the 'calm before the storm'-- and the stronger healthy rain falls ... are ust before us...

Pub's Prediction Time then....

(1) First likely -- imo--Catalyst .

Late this week-- Thursday or Friday-- [?](as a outside chance-- say 25%--??[?])--but probably next week-- imo, with the Melbourne Cup being the main practical 'announcement obstacle'--I reckon we will have a high, make that a very high chance of seeing....some AIM Londing News...along the lines of the Official 21 Day --pre listing Notice--.

This will be a significant trigger because investors will want in before the Londion Investors are appraised of everything we ahve gone through on this thread.

Second imo Catalyst

Between 15 November and 11 December 2006.

I also assess, that.... November/December has a very high probability of New Deals & Contracts out of either: Canada, India, United Kingdom,Europe, Scandanavia, USA and of course more out of Australia and New Zealand...

This is assessed and based on the reasons I gave-- in the posts over the last 3 days or so....

And is; specifically as regards Calendar/Financial Years ... and the amount of new opportunitieds documented on the Market Update-- only a 30% finalization rate ....

underground

01-11-2006, 02:02 PM

i took out some more at 16.5c.. hope it pays off soon.

trader-jim

01-11-2006, 02:32 PM

Love you picks Robbo, have been in ITE for a month and topped up last week at 14 cents and tempted to get some more before its too late.

Cheers

Jim:)

robbo

01-11-2006, 02:42 PM

(ITE) it&e...

Good afternnoon, trader-jim-- and underground,and (ITE)-- followers,

First some 'house keeping' .... in and from, my last post, I could not remember...[:I]-- 'the name'-- of the Venture Capitalist I quoted -- re Google, SUN, and Yahoo etc, etc...whose analogy/metaphor I used to describe the 'build up' of: Revenue Momentum in such like....global leading tech companies....

His name was/is: (Andy Bechtolsheim ), Venture Capitalist (V.C.)-- out of Silicon Valley-- a V.C. 'Legend'.... and extraordinary guy.....

So therefore, I have ammended.... my previous post accordingly plus with some other editing revisions....

No need for mere, 'hope'.... underground -- instead, the compelling hard 'facts' and statistics and numbers.... are, imo, 'your strong foundation'..... and your solid security... imo....

So relax... Nothing More. Nothing less.

Underground, it&e (ITE) is, imo a 'lay-up' -- where the calculable logical 'Upside'--- disproportiatenly favours the upside--and the margin of safety is a very evidnet and very 'wide one'---...

Underground, you will, conservatively; imo, triple (times 3 from your buy in price you quoted)-- your (ITE) capital investment.... imo..... ( from your 16.5 cents)--- imo--within my own pre-prescribed time period--- of 4 months-- and in this rare, and rather unique case --of (ITE) in half that time, ie: 2 months-- you will,.... imo..... increase your capital invested; to at least double ....your money and capital invested.....

So then; ..... What do you need to do now ... imo... underground...?

....Nothing....

Nothing at all actually....

....>>>--- Except be patient and hold for the next 8-9 weeks...

That is all.

Set a date on your fridge -- 9 weeks from now-- to not even consider selling unitl at least 7 January-- and preferably.... not ....till at least 7 March--imo, which is the 4 month... from today, timeline mark....

That can be, for some folk underground; MUCH --- much .... 'harder to do than it seems... sometimes'--- btw... undergrouund...;);)-- But that is inmo the real key....

Now then, a related to the above points, here are,.... imo,....

... seven (7) --- interesting hypothetical 'waht might be the forward value of (ITE)-- questions....[?][?] - :)

(Q.1.) What is the market cap of (ITE) now--undiluted for future options...?

(Q.2.)-- What would have to happen; on the 'earnings side of the (ITE) equation'--- for (ITE) to be re-rated to a Market cap of # $ approx:-- $210 millions -- undiluted. ??

-- Clue: see first initial 3 pages of (ITE) Annual Report just out last week.

(Q.3). At $210 millions, market cap-- approx what share price would that make (ITE)--[?][?]-- based on same amount of shares issued -- plus +-- say, approx $2 millions raised via the AIM listing to pay for that listing cost structure...??

(Q.4) Waht would need to ahppen to get the amrket to rate (ITE) highly and be trading on a forward style PE like Bravura(BVA) or say emitch (EMI)...?

(Q.5), Would this effect the (ITE) share price, and if so by how much??

(Q.6) How many 'new deals'//upgrades, renewals etc etc-- and/or ....how much addiional $$$ (ITE) revenues,....over and and above..... the current approx $16 millons, would (ITE) need to achieve pro rata for the half to acheive--[?] to get to this sort of point...?

(Q.7) Was there any clue; in your opinons....- [?]- in the (ITE) Annual Report --(first 3 pages or so...) as to the likely (a) break even point and (b) Gross Profit margin for (ITE) under the present capital structure ?

Q 7 b). What are those two seperate figures -[?]-(expressed as a ball park percentage.. [?]:))-- approx...[?]?

Just some 'food

Flying Goat

01-11-2006, 05:38 PM

quote:Originally posted by wns

[quote]Originally posted by David Hardman

FG

You reckon It&E have a competitive advantage based on a 5 year old article!.

Hell they only had to improve on the results produced by an internal developed system (probably years old) hosted on a sh1ty old Sun Box. As as for using Microsoft for clustering. Come on. Linux/Unix is by far a superior in this regard.... and a damn sight cheaper.

This article shows its age. It was released when MS where making all attempts to discrediting Unix/Linux. They have lost that battle and have retreated back to the desktop where they belong.

So in 2002 it took 13 hours to do their risk calculations. With Moores law (and a change in platforms) I'd be surprised if its not possible to do these calcs in near realtime on budget hardware! (sub 10k). If IT&E still have a competitive advantage they would have to be at this level now.

I agree IT&E does looks interesting but this old article does not provide any additional info.

I agree, keep it in perspective. Four years is a LONG time in the IT industry so you can't give much credence to an article from that long ago. Servers usually get replaced every three years and / or get upgraded along the way.

Hi David Hardman TheBoss and WNS

It might pay to RE-READ my post because I said that it describes in simple terms where PART OF their current competitive advantage lies. Obviously some did not follow my meaning here: as stated in the Risk Management Award article, ITE were first to market with "technology for processing on low cost hardware" and this is surely part of what got their feet in the door with the big Australian Banks.As we know ITE products tie EXISTING low cost run of mill servers together and perform the complex operations across them and to my (limited) knowledge their products are better at this than their competitor's, hence the award, hence winning overseas contracts as "outsiders". Also, Dave, yes one would expect that the transactions are processed signifiacntly faster by now, we know that and I was not disputing that point. Thanks for the comments though, I appreciate there that you techies (you know who you are) out there who know a lot more than I do (which is not hard because my knowledge is, well, practically nothing in this field).

Cheers
Flying Goat

tommy

01-11-2006, 06:09 PM

quote:Originally posted by TheBoss

tommy - are you then suggesting that IT&E has around two years to make hay, lock in clients, and establish 'perpetuity' contracts (leading to a different comp. advantage) before technology catches up and ITE loses its current competitive advantage through product differentiation?

In my view, IT manager's input to this decision is usually restricted to technology & support aspects - the 'business' (eg. risk managers) would have more say in these matters. Thats where the relationships and marketing have a better chance of succeeding, rather than the actual product's competencies.

Hi boss,

err, all I am saying that ITE seems to have a superior product NOW, which gives them a distinct advantage BEFORE the Basel II deadline because financial institutions must start adopting a system to facilitate the transition to the new compliance regime very soon, if they haven't already.

Running thorough tests to compare different products takes time, so they can't start thinking about switching to a new system a few weeks before the deadline, if you know what I mean[}:)]

In regards to "relationships and marketing have a better chance of succeeding, rather than the actual product's competencies", yes I know (ex-CBA executive should have enough personal contacts, though!) Anyway, ITE seems to be beefing up their marketing efforts so not at all worried about that:)

That said, I think performance and track record will be extremely important in this field because the last thing, say, exchanges, want is the embarassing glitch like the one experienced by Tokyo Stock Exchange a while ago after introducing a new system (Fujitsu's system failed!!) A bit like the "Who got sacked for choosing IBM?" scenario, I suppose.

treadcarefully

02-11-2006, 12:16 AM

Evening all (Robbo,Tommy,Boss,David,FG,Trader,Undergroun,AA:-)

At 5.09pm UXC released an Investor presentation - interesting read and noted some of the following points from it including,
1. P9 - Further acquisitions planned or envisaged $?m.;)
2. P12 Possible greater reliance on cash than equity in acquisition program :D
3. Possible buy-outs of equity earn-outs using cash[?][?][?][?] - Please explain not sure what this means
4. P15 Active acquisition program will continue in 2007.
- Strategic acq of businesses with an existing,or ability to build , a mkt-leading pos;
- Target businesses must be scaleable & offer synergies with existing UXC business
- Incumbent mgt must be capable of building the business in a profitable manner
- Strict acquisition criteria 2.5 - 4 times EBITDA multiple depending on earnings quality
- Acquisition funded by mix of debt and equity.
- $30m earmarked for acquisitions (probably can't be ITE as say 170m they don't own
at say @ 0.50 per share =$85m.
5. P16 Positive outlook for 2007
- Further acquisitions - already well-advanced on several targets.

Additional info on Tata buying up companies in the Banking and Finance Software sector and seems interesting that they were in Melbourne a couple of weeks ago on the acquisition trail also. Just thought it was interesting
Tata group has also been on the acquisition trail - as I received an email from google news
outlining the following.ohn Ribeiro, IDG News Service, 10/31/06

Indian outsourcer Tata Consultancy Services has acquired a 75% stake and management control of Swiss banking software and services provider TKS-Teknosoft SA for 100.5 million Swiss francs ($80.5 million).
The majority stake in TKS-Teknosoft will help TCS expand its portfolio of products for the banking and financial services market, besides giving TCS a direct presence in key European markets like Switzerland and France, according to N. Chandrasekaran, TCS' executive vice president and global head of operations, who spoke on a conference call Tuesday.;):D[8D]

Have a good one all.
And Robbo if your prediction of 3 times current price comes true in the next 2-4 I'II gladly contribute to the Pubs stock of Crownies with a few Mars bars thrown in.

treadcarefully

02-11-2006, 11:40 AM

Hi All,

What is everyone's thoughts on my previous post.

Could UXC be the one's protecting the ITE SP - ie keeping in a tight range in the hope that they can snag a bargin at around 30c as point 5 suggests - Further Acquisitions - Well advanced on several key targets. ;) Is ITE one of these[?][?][?]
ITE fits their guidelines for an acquisition of its type.

Anyway just a thought as they could move quickly.
;)

robbo

03-11-2006, 05:19 PM

(ITE)

Hi treadcarefuly,

Wanted to let others answer your questions....and I feel that they were 'partly' answered in the previous posts....

And so will now put down some 'scrap notes'-- thoughts...rather than say: This is what I think will decidedly happen....

(1) There is a difference betweeen UXC wanting and/or coveting to to buy (ITE) and achieving that outcome.

(2) --Treadcarefully; I of course, Do not yet know the capital structure envisaged..--?[?]?---- if there were to be a merger... or something similar...--??-- but the idea of a 'merger' .. rather than a takeover attempt --friendly or unfriendly -- ....between two equals-- in say six to nine... 6- 9 months -[?]-time--....does for some intuitive reason --??-- treadcareully; [?][?]-- quietly --very quitely-- resonate in the deeper recesses of my mind ... ???

Question: Why does this hypothesis (merger instead of Takeover)-- dimly-- perhaps.... resonate for you Robbo.. ???

Answer: A closer examiation of the UXC Announcement dated:-- 3/7/06- states, after the UXC CEO Geoff Lord first says that, in his view....

“UXC has had a substantial interest in IT&e for several years.

...... We felt that the.....

(1) (my numbering)-- "The timing was right to once again increase that investment in (ITE) to 12.67% .....as the quality of the (ITE) Specialist Risk Management products developed and marketed ...in the view of the UXC Board and Management-- by IT&e to top-tier global financial institutions..... does not seem to be reflected in it&e's (ITE's)-- current enterprise
value....

... and (2) .... We (UXC)-- also believe ....that UXC ....can be of some help.... (my itallics and bold printing)-- in improving IT&e’s prospects,......through such means as assisting to strengthen IT&e’s balance sheet and again.... by ....

....."UXC ... providing support in a number of IT service areas.”
....

This seems to me... at least to me Treadcarefully; more the language and message of a friendly 'courting partner'--- rather than, a predator doing a takeover manouver ....?--

Interested in other folks opinions, comments and views of course....

------ end of first set of notes on 'takeover/merger' idea---------------------however.... there is, another seperate point below -------

Thought I would quickly, now....just remind (ITE) sharetrader investors, of my previous prediction,(and it is JUST a prediction guys.... )-- re: my prediction .... of the likely (ITE) share price up grading -- [?]-in the next week or very early in the .... following week,.... where I said, on 1/11/06....:

Pub's Prediction Time then....

(1) First likely -- imo--Catalyst .

Late this week-- Thursday or Friday-- [?](as a outside chance-- say 25%--??[?])--but probably next week-- imo, with the Melbourne Cup being the main practical 'announcement obstacle'--I reckon we will have a high, make that a very high chance of seeing....some AIM Londing News... along the lines of the Official 21 Day -- AIM listing// pre listing Notice Period-- anouncement....

This will be a significant trigger, imo, because investors will want in before the Londion Investors are appraised of everything we have gone through on this thread.

tommy

07-11-2006, 02:27 AM

http://www.lse.co.uk/FinanceNews.asp?shareprice=&ArticleRef=92395&ArticleHeadline=ITe_Ltd_says_seeking_AIM_flotation

Latest UK-related finance news headlines
Monday, 6th November 2006 11:35

IT&e Ltd says seeking AIM flotation

LONDON (AFX) - IT&e Ltd, a provider of software and consultancy services to the banking sector, is to seek admission of its shares to the AIM segment of the London Stock Exchange under the exchange's fast-track procedure.

IT&e, which is already listed in Australia, did not disclose financial details of the planned listing.

Managing director Jim Maranis said, 'IT&e's flotation on AIM will aid the company in its European expansion by increasing the company's profile in Europe.'

Bobbyvee

07-11-2006, 11:03 AM

Well spotted Tommy. I see there is also an ASX announcement this morning. Will be intersting to see how the market reacts.

Cheers
bobbyVee

P.S. Did you have a look at HYO

tommy

07-11-2006, 04:51 PM

Hi Bobbyvee,

AIM listing:
http://sa.iguana2.com/cache/33c29b3bb7bd797ecc42d388ffab6fcd/ASX-ITE-264837.pdf

I was particularly interested in the following statements:

" 7. THE PLACING

The Company is planning a private placing to institutional and other investors in the UK of up to 27 million Ordinary Shares. HB Corporate has agreed, as agent for the Company, to use its reasonable endeavours to procure placees for the Placing Shares, subject to the completion of the Placing Agreement, due diligence and market conditions. It is intended that the Placing will be completed immediately prior to Admission. The Placing is not underwritten. The estimated proceeds being raised by the issue of the Placing Shares will be used to fund the costs associated with Admission and also to provide further working capital for the development of the Company s operations in the European, region. The Placing Shares will be issued to the placees conditional upon Admission. Application will be made for the existing Ordinary Shares and the Placing Shares to be admitted to
trading on AIM and for the Placing Shares to be admitted to trading on ASX. Admission is expected to become effective on December 2006.

8. WORKING CAPITAL
The Directors have no reason to believe that the working capital available to the Group will be insufficient for at least twelve months from the date of Admission."

Also, UXC as of Nov 2 has 12.5% of all ITE shares.

"The costs, charges and expenses payable by the Company in connection with or incidental to Admission, including registration and stock exchange fees, legal and accounting fees and expenses are
estimated to amount to A$562,000, (£228,000) excluding commissions and any applicable VAT."

___________________

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=899783

IT&e banking on AIM success

Mon 06 Nov 2006
LONDON (SHARECAST) - IT&e, a provider of software solutions and consultancy services to the banking sector, is planning to list on London’s AIM next month, it said today.

The group, headquartered in Sydney, Australia and quoted on the Australian Stock Exchange, wants to list on the junior market under the LSE’s “fast track” procedure.

It is allowed to raise up to £1.5m under ASX regulations, valuing the firm at around £14m on admission.

“IT&e’s flotation on AIM will aid the company in its European expansion by increasing the company’s profile in Europe,” said managing director Jim Maranis.

“I am confident that we will be able replicate our success in winning new clients in Australia, in the European and North American markets.”

The firm provides consultancy services, multi-asset class trading platforms and risk management solutions and boasts customers such as HSBC, ANZ and Commonwealth Bank of Australia.

Its core offering is based around the provision of three high level financial services software products; Razor, a risk management application, PTX and Monarque.

Grant Thornton is acting as nominated adviser and HB Corporate is acting as broker.

_____

PS Have looked into HYO, looks interesting but need to do more research... I'm ill at the moment so cannot think straight[xx(]

tommy

07-11-2006, 05:14 PM

Hi all,

I'm a bit feverish at the moment so my braincells aren't functioning properly so help me make a bit of sense of the above announcement, thanks!

1. 27 million Ordinary Shares are gonna be placed without being underwritten... err, this is shareholder dilution by almost 1/6 of their current outstanding shares, right?

2. If shares are gonna be placed without being underwritten, does it mean they already have sorted out the possible candicates to whom the shares might be placed[?] Is UXC gonna pick up MORE stocks?

3. Cash balance as of end of FY2006 was AUD4.4 million. 27 million newly-placed shares multiplied by, say, $0.14 will be $3.78 million, so this will give ITE more than $8 million in cash, minus the AIM listing cost "A$562,000 (£228,000) excluding commissions and any applicable VAT". Is this right?

Flying Goat

07-11-2006, 06:03 PM

quote:Originally posted by absolut-advance

volumes pretty slack today....Yawn...Zzzzz

Hi AA, Tommy, Robbo and gang...

Yep small volume, and that was just me selling a few. Was not very enthusiatic about today's announcement.

Firstly, my theory has been turned on its head a little. My theory was that first half may not result in breakeven, but full year would bring in an npat result of around AUD 3 to 4 million. If you read closely looks like they are not even standing behind the original statement of "will improve profitability in the coming financial year" - there was a definite full year profit warning in there, if you look closely. I'm beginning to question their business model if we are going to see another full year with negative earnings - that is too long.

Secondly, as Tommy states the dilution resulting from the capital issue is actually about 7 to 1, so before you know it you have an even smaller piece of the pie... that may lack earnings for the full year.

Thirdly i am almost a bit suspicious that the price would spike so conveniently before a capital issue, enabling them to raise effectively twice as much money as they would have been able to one month ago, but only giving away the same portion of the family jewels?

My third point may be a little hair-brained / conspiracy theorist but all in all I must say that today has taken a lot of the shine off ITE for me. Perhaps if all the brokers were not at Melbourne Cup today it would have been sold down to around 12 maybe 11 cents today...???? Where I imagine it will be by the end of the week...:( That is a far cry from Robbo's bullish prediction... hope he is right and I am wrong!!

Cheers
Flying Goat

underground

07-11-2006, 07:02 PM

i interpreted it as a profit warning also.. epecially when they wanted to reclarify their operating.. profit statement which they issued earlier

i too am thinking of flying with the goat.

senor guacamole

07-11-2006, 11:03 PM

hi A-A, nice disclaimer.....the tone is pretty negative alright..and certainly pushing out the timing of the move into profit. as quite scary reading about ralph pickering and the amount of companies hes been involved in that have ended up in liquidation.
we ll wait and see what transpires tommorrow....

Flying Goat

07-11-2006, 11:06 PM

quote:Originally posted by senor guacamole

hi A-A, nice disclaimer.....the tone is pretty negative alright..and certainly pushing out the timing of the move into profit. as quite scary reading about ralph pickering and the amount of companies hes been involved in that have ended up in liquidation.
we ll wait and see what transpires tommorrow....

Hi SG,

Say WHAAAT?! about Ralph Pickering and companies ending up in liquidation...!!???

FG

ohmyme

08-11-2006, 01:02 AM

I read this much differently. 1 in 7.4 share dilution or around 13.5%, which is just shy of the maximum allowed dilution of 15%. In order to raise awareness and profile, I would suggest that they need some Europeans etc to get a piece of the action.

In terms of the profit warning, cant you people read properly!!!!! They clarified that it is not a profit forecast, so how is this a profit warning. They can not accurately forecast at this stage a net result for the full financial year. I would say that their results are so variable and sensitive to contract wins, that the quantum and range of the results would be too far to predict at this stage with any meaningful accuracy.

If they book 10 of the 25 etc, then they may drop a net result of $20million, if they land all of them it could be even greater, if they don't land any then they may report a loss. The crux of the matter is that they dont know yet, so they cant predict. I like the fact that they are only going to report when they actually win a contract.

Anyways still too much evidence weighing towards a massive share re-rate for me to sell at these low levels. I

Flying Goat

08-11-2006, 07:35 AM

quote:Originally posted by ohmyme

I read this much differently. 1 in 7.4 share dilution or around 13.5%, which is just shy of the maximum allowed dilution of 15%. In order to raise awareness and profile, I would suggest that they need some Europeans etc to get a piece of the action.

In terms of the profit warning, cant you people read properly!!!!! They clarified that it is not a profit forecast, so how is this a profit warning. They can not accurately forecast at this stage a net result for the full financial year. I would say that their results are so variable and sensitive to contract wins, that the quantum and range of the results would be too far to predict at this stage with any meaningful accuracy.

If they book 10 of the 25 etc, then they may drop a net result of $20million, if they land all of them it could be even greater, if they don't land any then they may report a loss. The crux of the matter is that they dont know yet, so they cant predict. I like the fact that they are only going to report when they actually win a contract.

Anyways still too much evidence weighing towards a massive share re-rate for me to sell at these low levels. I

hi ohmyme

Yes, I can read, quite well for a goat infact. Not a profit warning in the traditional sense, no, but an indication that there is a possibilty ITE will not be booking a profit for the full year - just semantics really mate, same thing at the end of the day. Imo, a rerate is COMPLETELY CONTINGENT on them bagging a few contracts in the next six months, and this makes the proposition a little more risky, imo. If they are not expecting to book a profit on existing deals, aside from winning some large new contracts, what other fundamental improvement is there to justify a rerate? That is a gamble and the dice could fall either way. In saying that I do commend that they are covering their backsides with messages of caution.

Flying Goat

ohmyme

08-11-2006, 08:25 AM

Well then as you specify, this becomes a game of whether they are going to bag some contracts in the next 7 months or so. Hmmmmmm, I wonder if they are going to do that. Lets look at the facts then:

Europe: Short listed in RFP process with three TIER ONE and TIER TWO European banks - Razor. Mandates with FIVE further banks. So we have 3 advanced opportunities and 5 medium terms ones.

USA: Short listed in RFP process with one TIER ONE Canadian bank and two SIGNIFICANT US domiciled financial institutions - Razor. + 3 mandates. 3 advanced and 3 medium.

AUD: Contracted (in other words in the bag) first sale and deliver of UGRADED Monarque to TIER ONE Asian bank. Preferred vendor stage with 2 TIER TWO Aussie bank - Razor. Preffered vendor stage with Tier 2 Aussie - PTX, and bidding for 3 mandates. 1 in the bag, 2 advanced and 3 medium.

So we have in total 9 advanced deals, most of those relating to new RAZOR contracts. Plus 11 medium term deals, where the actual banks / financial institutions have gone to them, not the other way around.

In addition to the above ITE has a very impressive reference site list.

In addition they have deliverd on their promises and managed to list on AIM. Hello people they delivered on their promises, that is excellent news.

In addition, this means presentations etc. In addition its the end of the financial year in America etc, which means the prospects of contract wins is very high.

In addition they are working on some more aquisition deals.

In addition they are expanding their service capabilities.

In addition UXC is trying to get someone on board, I wonder if they are going to try and buy more shares on market etc through other nominee accounts etc to get more votes to put that lady on the board. In addition AIM listing is now in the bag, this means those big fat juicy rich poms will want a piece of the action.

In addition Greg Meekings with all his contacts and experience is at this very moment finalising some European strategic deals.

In addition ITE are running at close to break even, with a sales presence that spans Europe, America, Asia and Australia.

In addition the cut off date for meeting BASEL II is rapidly approaching. There is not going to be any shortage of opportunities out there.

Any of the above mentioned 20 potential deals will flow mostly onto the bottom line. Even at 50% margin above their fixed cost base of $15million, and they only land 50% of the deals, for an average of $2million a pop would put $10million straight on the bottom line, with $40million in tax losses that is net profit of 10, PE this out to 10 or 20 or 30 and you get $100, $200 or $300million. With 227 million shares on issue that is a share price of 44c to $1.30. If you dont think the market will support these kind of market caps just peer group it against companies such as BVA and DWS.

Sorry FG you and me live in totally different worlds at the moment. This thing has HOLD written all over it, or if you are not on the boat yet -> BUY.

ciao

senor guacamole

08-11-2006, 09:25 AM

Re pickerings liquidations, i just reread it....pp23 pf the aim listing report. 4 x liquidations for pickering, 1 x for bell and 1 x for yenckin. They are to be commended for making this public (or is it required?). checking again today i note that pickering has been director of MANY companies so his 'strike rate' is not that bad. I hope this is and the 'accentuation of the negative' that is prevalent in this report is just a case of ass covering prudence as FG commends.
I too think the upside is pretty damn good, will cautiously hold until further info appears.

ohmyme

08-11-2006, 09:59 AM

Pickering is MD of M&A of UXC. Considering that UXC is an M&A company in the IT industry I would say he was instrumental to the successes of UXC today. Check out the number of holdings he has, this guy is a deal maker. I am sure he has hundreds of side projects going on. His primary reason for hopping on the board is to provide advice on buying companies for ITE. You cant get them right all the time, and generally you can only get to where you are today by making mistakes.

This doesnt phase me in the least. Just shows how transparent the company is.

cheers.

Flying Goat

08-11-2006, 11:31 AM

quote:Originally posted by ohmyme

Well then as you specify, this becomes a game of whether they are going to bag some contracts in the next 7 months or so. Hmmmmmm, I wonder if they are going to do that. Lets look at the facts then:

Europe: Short listed in RFP process with three TIER ONE and TIER TWO European banks - Razor. Mandates with FIVE further banks. So we have 3 advanced opportunities and 5 medium terms ones.

USA: Short listed in RFP process with one TIER ONE Canadian bank and two SIGNIFICANT US domiciled financial institutions - Razor. + 3 mandates. 3 advanced and 3 medium.

AUD: Contracted (in other words in the bag) first sale and deliver of UGRADED Monarque to TIER ONE Asian bank. Preferred vendor stage with 2 TIER TWO Aussie bank - Razor. Preffered vendor stage with Tier 2 Aussie - PTX, and bidding for 3 mandates. 1 in the bag, 2 advanced and 3 medium.

So we have in total 9 advanced deals, most of those relating to new RAZOR contracts. Plus 11 medium term deals, where the actual banks / financial institutions have gone to them, not the other way around.

In addition to the above ITE has a very impressive reference site list.

In addition they have deliverd on their promises and managed to list on AIM. Hello people they delivered on their promises, that is excellent news.

In addition, this means presentations etc. In addition its the end of the financial year in America etc, which means the prospects of contract wins is very high.

In addition they are working on some more aquisition deals.

In addition they are expanding their service capabilities.

In addition UXC is trying to get someone on board, I wonder if they are going to try and buy more shares on market etc through other nominee accounts etc to get more votes to put that lady on the board. In addition AIM listing is now in the bag, this means those big fat juicy rich poms will want a piece of the action.

In addition Greg Meekings with all his contacts and experience is at this very moment finalising some European strategic deals.

In addition ITE are running at close to break even, with a sales presence that spans Europe, America, Asia and Australia.

In addition the cut off date for meeting BASEL II is rapidly approaching. There is not going to be any shortage of opportunities out there.

Any of the above mentioned 20 potential deals will flow mostly onto the bottom line. Even at 50% margin above their fixed cost base of $15million, and they only land 50% of the deals, for an average of $2million a pop would put $10million straight on the bottom line, with $40million in tax losses that is net profit of 10, PE this out to 10 or 20 or 30 and you get $100, $200 or $300million. With 227 million shares on issue that is a share price of 44c to $1.30. If you dont think the market will support these kind of market caps just peer group it against companies such as BVA and DWS.

Sorry FG you and me live in totally different worlds at the moment. This thing has HOLD written all over it, or if you are not on the boat yet -> BUY.

ciao

I reeeaaaally hope that you are right ohmyme...:D because although I lightened the load a little yesterday I AM STILL HOLDING and HOPING....[:I] not much choice at the moment... there are too few buyers

Stranger_Danger

08-11-2006, 12:44 PM

As Johnny Rotten would say, ever get the feeling you've been cheated?

ohmyme

08-11-2006, 12:53 PM

Yup, by selling your shares at 12c I would feel cheated as well.

jacko

08-11-2006, 01:13 PM

WHERE IS ROBBO??????

GONE AWOL

OneUp

08-11-2006, 01:22 PM

quote:Originally posted by jacko

WHERE IS ROBBO??????

GONE AWOL

Why blame Robbo? He put forward a well-researched opinion.

Other, counter opinions have been expressed on this thread, it's up to you to review which case (the pro or the con) is better and decide which one is more convincing.

PS: Ohmyme, my teachers assured me I could read to at least a Standard 2 level [:I]

quote:Originally posted by ohmyme
In terms of the profit warning, cant you people read properly!!!!!

robbo

08-11-2006, 01:49 PM

(ITE) it&e.

Patience. ... Just, a little more ..... 'patience'.

Kind Regards,

Robbo :)

ONTHENOSE

08-11-2006, 02:04 PM

Sit back and relax... [8D][^]:D

ohmyme

08-11-2006, 02:16 PM

I don't doubt anyone's reading ability OneUp, more the interpretation side of things :) I guess I shouldn't expect much from FG, after all he is just a goat, pretty amazing for a goat really.

ps. I am only joking FG :P

Flying Goat

08-11-2006, 06:18 PM

quote:Originally posted by OneUp

Originally posted by jacko

WHERE IS ROBBO??????

GONE AWOL

Why blame Robbo? He put forward a well-researched opinion.

Other, counter opinions have been expressed on this thread, it's up to you to review which case (the pro or the con) is better and decide which one is more convincing.

I agree with OneUp, we are all 100% responsible for our own investment decisions...!

FG

Flying Goat

08-11-2006, 06:24 PM

quote: ohmyme:

Sorry FG you and me live in totally different worlds at the moment. This thing has HOLD written all over it, or if you are not on the boat yet -> BUY.

ciao

Indeed we do, but judging by today's slide you are also living in a different world than the market... which is not necessarily a bad thing over the long term, but does go to show that apparently most people percieved yesterday's announcement as a minus rather than a plus.

Cheers
FG

robbo

08-11-2006, 09:26 PM

it&e (ITE)

Said it before.

Repeat it again .....

A dash of 'patience' in this (ITE) case-- will, imo :-- ...

(a)avoid you losing a painful 'opportunity cost' lesson.

(b) avoid high potential of you been caught out & losing large gains in any (ITE) 'shares being snapped into freeze-- "Significant Announcement" news due to the at least, 20 odd shortlisted mandated stage potential very significant deals in the current (ITE) high Dollar value, Sales --- now Present at the final stage now... -- yep now--.... (ITE) Sales Pipeline...

(c) If that happens -- you will possibly, imo, kick yourself, feel a forlorn frustration and 'wotif -- if only .... I was a litle more patient' empty sensation .... and mentally -- if not literaly; grind your teeth.....

....Why .. ??

Because you were maybe, not a little more patient. ...

.... That is all.... just now ...need a little patience....

What do I think of now...? I think of Think of the very famous Aessops Fable .... re: The Tortoise & The Hare .....

.... No More... No less....

(d) The 'word-age' in the (ITE) AIM lisinting announcement yesterday; that you may unnecessarily now .... ??-- have, 'troubled your souls over'-- was not a revision to profit forecasts-- but rather; simply a Grant Thornton Accounting Firm Legal Disclaimer-- that covers their legal butt.

Nothing More. Nothing less....

....Got it...?[?]?

Nothing More. Nothing less....

It was not a cause, imo, for any concern whatsoever. Not even a small bit. Not a tittle.

And, imo, it certainly and factually; ... IS/Was ... certainly ... Not .... a evidence based factual based reason for any concern whatsoever .... absolutely categorically, imo, none whatsoever....; ....

,....For you... my good friends; .... to sadly succumb to irrational fear and wory wart tendencies; and to lose your rightful opportunity .... for very Soon now, high potential nice significant long term capital profitable gains ....

...So what, imo, to do now eh ....??

Answer: Do not let baseless irrational fears; and irrational illusiomns, built on foundations of flotsam and jetsam.... ....jettison your.... precious diamonds and pearls.... is my own thought-lines and expressions.... in response to the hypothetical querry,... "Robbo what now; ....'what to do....?'...."

imo .... Now is the time to have strong intrinsic Value INVESTOR Back - Bone and 'nerves of steel', to be controlled emotionally, and to be be .....cool, calm and collected,.... and basically to relax, breathe in,.... imo, and just.... calmly and resolutely .... HOLD your (ITE)-- shares ... close by you, nice and tight....

.... Very tight.....

Have said it concretely before... imo (ITE) is NOW -- right now... seriously-- imo, Highly Under--valued'-- and all will be revealed in weeks and not months ... even, if not days....

Your (ITE) shares; are currently a rare, and soon, imo, to be scarce,(at these crazy low prices)-- undervalued asset --which will grow upwards strongly in capital profitable value.... at a very 'rapid clip'.... imo.

Kindest Regards,

Robbo :)

PS.

Question: Of the '20 ++ plus'-- or so odd ..... short-listed and NOW in many cases now officially contracturally 'mandated'.... etc etc Contractural Proposals ....that (ITE) itemize-- as are in the final stages of their Sales Pipeline-- ??-- of these....

..... What approxiamte percentage-- (%-age)--??-- do you think ...???-- --they (ITE) -- would; ... on a very recent history of them (ITE) winning such Bank co

WASL

08-11-2006, 10:10 PM

Hi Robbo & All,

I concur that one should not lose one's nerve. I am a holder of a medium quantity of ITE bought at $0.19 and intend to hold - in fact may buy more (dollar cost averaging).

By the way Robbo - there is something wrong with the time stamp on your computer. At 8:04 pm ESDST, your latest post was time stamped at 9:33 pm.

Good luck as always

WASL

WASL

08-11-2006, 10:13 PM

Sorry about time comments in last post - just realised NZ time.

WASL

tommy

08-11-2006, 10:29 PM

Hi ITE watchers/holders/critics,

Looks like there is a lot of disagreement over the latest announcement... anyway, the market reacted negatively and I too offloaded a chunk of my holdings today simply because I wanted to lock in some profits. (I just HATE dilution!!!)

I still hold some ITE stocks and will be happy to top up at lower levels, but I think market correction is due after the strong run of All Ordinaries... As a general rule, I prefer NOT holding stocks of companies that are not cash-flow positive at times like that simply because downward pressure tends to be stronger for such stocks. And of course, I like reorganizing my portfolio to resist downturns and having enough cash to buy cheapo, low PE undervalued stocks when everyone else is selling[:I]

ITE will be volatile (as I have always said), so if you can't sleep well at night in the face of violent ups and downs, don't touch it especially if you don't know what you're doing!

Keep up da good work Robbo, your comments here will always be highly appreciated[8D]

steve fleming

08-11-2006, 10:42 PM

quote:Originally posted by davidrob

(d) The 'word-age' in the (ITE) AIM lisinting announcement yesterday; that you may unnecessarily now .... ??-- have, 'troubled your souls over'-- was not a revision to profit forecasts-- but rather; simply a Grant Thornton Accounting Firm Legal Disclaimer-- that covers their legal butt.

Nothing More. Nothing less....

....Got it...?[?]?

Nothing More. Nothing less....

It was not a cause, imo, for any concern whatsoever. Not even a small bit. Not a tittle.

Hi Robbo...are you sure??? ...are you able to advise on what basis GT need to do this??

From my reading, GT have not audited or reviewed any forecasted financials of ITE...nor have they put their name behind any forecasts of ITE...am struggling to see how liability would attach to GT if forecasts were in error???

Cheers

robbo

08-11-2006, 11:34 PM

it&E (ITE)

yep, am sure Steve.

Basically AIM come down heavilly on unsubstantiated forecasts.....
from any newly listed listee company....

It is to avoid the International All Sports Scenario (IAS) and such likm, where by overly optimsitic forecasts are used by directors of certain unreputable private vehicles -- Venture Capitalsits--IPO and come out on the easyier to 'market' PR style spike....

....And then, unfortunate situation when only 6 months later the company doing the new listing share price is 10% or the post IPO price....

-You can see the obvious problems; of the various possible scenarios....

Which is why the wordage is/was legally constructed,by GT legal-- and so; it is in effect a Disclaimer.

And yep, GT Legal Dept chose the wordage.

Checked that fact today with it&e Senior Management --it was 'cajoled' onto them by GT, who were, as per the 'Prospectus --or ought I say the-- legally required AIM Documents'-- as per posted on ASX as well; & the nominated advisor group for (ITE)--namely GT.....

(ITE) mgt emphasized that it was not their preference; but GT legal... as part of their advisory work, who 'insisted upon the wordage'....

Also (ITE) emphasized, in same conversation, ... It is/was not a profit forecast revision... in fact it is a disclaimer... which is, am lead to believe.... actually .... what all newly AIM listees are required to do...(or not to do )-- --ie: that newly listed nominees, are not allowed to put down profit forecasts....-- or even 'Profit Forecasts Benchmarks' at the 'IPO' or newly listed stage...actually.

Finally Steve, I never said GT were 'behind any profit forecasts'--GT simply just told ITE not to make any...!! or allow that inference....even from recent ASX annouceemnts-- to allow for smooth passage on the pending (ITE) AIM listing ..... hence the inclusion of the discussed 'Disclaimer'...

Also, Thanks for your always great input Steve.....[^]:)

Regards,

Robbo:)
drrobo@bigpond.net.au

DISCLAIMER
Views expressed in this opinion expressed on Sharetrader, as above are explicitly unwarranted, and expressed on a strictly: ‘Without Prejudice’ basis.. These views are only personal opinions and speculations, are not warranted, in any way whatsoever, either expressed or implied, for their accuracy or veracity. These opinions & correspondences, expressed in this email and/or on this internet site are only the writer’s tentative thoughts and opinions only. They are, nothing more than that. These views are not…. (Repeat: ‘not’ …)…to be read as being, or even forming any form whatsoever of investment recommendation, general or specific. Instead, they are just simply personal ideas and opinions, and to repeat, are NOT to be read or interpreted as financial advice. These expressed opinions written here, are not warranted in any way whatsoever, either expressed or implied, for their, authenticity, or likely predictive outcome. Therefore, these comments are highly subjective and prejudiced by the writers own opinions, perceptions and outlook. As a result, these views may be prone to errors, as they are not official in any way, have not been checked by an authorized third party, and are possibly incomplete, ill informed and/or inaccurate. With this in mind, the author reminds readers that these opinions expressed here; are strictly on a “Without Prejudice” basis only. Remember readers, to read these opinions as just one of many expressed personal subjective thoughts and ideas, in the ‘common market-place of ideas’—and are only that. Readers must recognize that, as they are only one possible viewpoint among many, and therefore they are at best; only the author’s own highly subjective whimsical thoughts, impressions, and intuitions. You therefore ought not to rely upon these views for any form of advice or counsel. Instead, you are responsible for your own decisions. Readers must also note that, as with all expressed opinions, they are definitely open to discussion and refutation, as well as logical weighing

steve fleming

08-11-2006, 11:49 PM

Ok thanks Robbo...makes sense...cheers

robbo

08-11-2006, 11:52 PM

(ITE)

Hi Tommy,

my view, is you have made a large mistake unfortunately Tommy.

But each to their own.

But as you inferred Tommy, you did what you did....coz 'the market reacted negatively'.....

As investors, that is where you Tommy, and myself... differ in our decisions to Buy, Hold or Sell.

I never 'react'--coz of the ticker price--and/or coz of the daily whims and mental depression states of Mr Market.

Mr Buffett also repeatedly makes this point, that in Mr Buffetts opinion this is important...to avoid market daily reactions & fluctuations.

Also ITE are now trading cash flow Positive...

(see ITE)--ASX numerous references in ASX announcements....

Regards,

Robbo:)
drrobo@bigpond.net.au

DISCLAIMER
Views expressed in this opinion expressed on Sharetrader, as above are explicitly unwarranted, and expressed on a strictly: ‘Without Prejudice’ basis.. These views are only personal opinions and speculations, are not warranted, in any way whatsoever, either expressed or implied, for their accuracy or veracity. These opinions & correspondences, expressed in this email and/or on this internet site are only the writer’s tentative thoughts and opinions only. They are, nothing more than that. These views are not…. (Repeat: ‘not’ …)…to be read as being, or even forming any form whatsoever of investment recommendation, general or specific. Instead, they are just simply personal ideas and opinions, and to repeat, are NOT to be read or interpreted as financial advice. These expressed opinions written here, are not warranted in any way whatsoever, either expressed or implied, for their, authenticity, or likely predictive outcome. Therefore, these comments are highly subjective and prejudiced by the writers own opinions, perceptions and outlook. As a result, these views may be prone to errors, as they are not official in any way, have not been checked by an authorized third party, and are possibly incomplete, ill informed and/or inaccurate. With this in mind, the author reminds readers that these opinions expressed here; are strictly on a “Without Prejudice” basis only. Remember readers, to read these opinions as just one of many expressed personal subjective thoughts and ideas, in the ‘common market-place of ideas’—and are only that. Readers must recognize that, as they are only one possible viewpoint among many, and therefore they are at best; only the author’s own highly subjective whimsical thoughts, impressions, and intuitions. You therefore ought not to rely upon these views for any form of advice or counsel. Instead, you are responsible for your own decisions. Readers must also note that, as with all expressed opinions, they are definitely open to discussion and refutation, as well as logical weighing and consideration of other alternative interpretations and viewpoints. For any investment decision, the writer urges readers to conduct their own independent and separate investigations and research, and always seek their own qualified and authorized third party independent financial advice.

Kindest Regards,

Robbo .

------------------------------------------------------------------

[quote]quote:Originally posted by tommy

Hi ITE watchers/holders/critics,

Looks like there is a lot of disagreement over the latest announcement... anyway, the market reacted negatively and I too offloaded a chunk of my holdings today simply because I wanted to lock in some profits. (I just HATE dilution!!!)

I still hold some ITE stocks and will be happy to top up at lower levels, but I think market correction is due after the strong run of All Ordinaries... As a general rule, I prefer NOT holding stocks of companies that are not cash-flow positive at times like that simply because downward pressure tends to be stronger for such stocks. And of course, I like reorganizing my portfolio to resist downturns and having enough cash to buy cheapo, low PE undervalued s

underground

08-11-2006, 11:54 PM

i totally got screwed on stop loss. ='(

robbo

08-11-2006, 11:58 PM

(ITE)

Hi UNderground,

Way I see 'stop loss', is better to use the more accurate descriptive phrase: -- ... 'Guaranteed Loss'....

Can never really, ever ever understand ....why anyone ....wants to go in for .... so called ....Guaranteed stop Losses....

Guaranteed stop losses,that stop you making a profit .... ... what an amazing concept .....

kindest regards,

Robbo ...

robbo

09-11-2006, 11:42 AM

it&e (ITE)

Said it before.

will quietly repeat it again .....

..... A dash of 'patience' in this (ITE) case-- will, imo :-- ...

(a) Avoid you possible losing a painful 'opportunity cost' lesson.

(b) Avoid high potential of you been caught out & losing large gains in any (ITE) 'shares being snapped into freeze-- "Significant Announcement" news due to the at least, 20 odd shortlisted mandated stage potential very significant deals in the current (ITE) high Dollar value, Sales --- now Present at the final stage now... -- yep now--.... (ITE) Sales Pipeline...

** see comment in the post script (PS) for notation re, Sales Pipeline)

(c) If that happens -- you will possibly, imo, kick yourself, feel a forlorn frustration and 'wotif -- if only .... I was a litle more patient' empty sensation .... and mentally -- if not literaly; grind your teeth.....

....Why .. ??

Because you were maybe, not a little more patient. ...

.... So all.... which is now ...needed, imo, is a little patience....

What do I think of now...? ....

....I think of Think of the very famous....

... Aessops Fable .... re: The Tortoise & The Hare .....

.... No More... No less....

(d) The 'word-age' surrounding 'Profit Forecasts' -- in the (ITE) AIM listing announcement yesterday; that you may unnecessarily now .... ??-- have, 'troubled your souls over'-- was not a revision to profit forecasts-- but rather; simply a Grant Thornton Accounting Firm Legal Disclaimer-- that covers their legal butt.

Steve Fleming, brought up a very good point,re above: so I clarified thus, in a subsequent response ...

Basically Steve, AIM comes down heavilly on unsubstantiated forecasts.....from any newly listed listee company....

It is to avoid the International All Sports Scenario (IAS) and such like, where by overly optimsitic forecasts are used by directors of certain unreputable private vehicles -- Venture Capitalsits--IPO and come out on the easyier to 'market' PR style spike....

.... And then, unfortunate situation when only 6 months later the company doing the new listing share price is 10% or the post IPO price....

- You can see the obvious problems; of the various possible scenarios....

-- Which is why the wordage is/was legally constructed,by GT legal- and so; it is in effect a Disclaimer.

... And yep, GT Legal Dept chose the wordage.

...Checked that fact today with it&e Senior Management --it was 'cajoled' onto them by GT, who were, as per the 'Prospectus --or ought I say the-- legally required AIM Documents'-- as per posted on ASX as well; & the nominated advisor group for (ITE)--namely GT.....

(ITE) management id also emphasize; that it was not their preference; but GT legal... as part of their advisory work, who 'insisted upon the wordage'....

Also (ITE) management; emphasized, in same conversation, ... It is/was not a profit forecast revision... in fact it is a disclaimer... which is, am lead to believe.... actually .... what all newly AIM listees are required to do...(or not to do )-- --ie: that newly listed nominees, are not allowed to put down profit forecasts....-- or even 'Profit Forecasts Benchmarks' at the 'IPO' or newly listed stage...actually.

Finally Steve, I never said GT were 'behind any profit forecasts'--GT simply just told ITE not to make any...!! or allow that inference....even from recent ASX annouceemnts-- to allow for smooth passage on the pending (ITE) AIM listing ..... hence the inclusion of the discussed 'Disclaimer'...

Also, Thanks for your always great input Steve.....[^]:)...

Nothing More. Nothing less....

....Got it...?[?]?

Nothing More. Nothing less....

It was not a cause, imo, for any con

robbo

09-11-2006, 01:33 PM

ite

Two(2) basic easy points to remember, amidst all the activity.

(1)--(ite) said they were going to try list on AIM this year.

Guess what....???...

.....They did and look like completing this business operation successfully. ie: They did do it.

(2) After say December 1st.--2-3 weeks time-- Guess what this means...?

More ite scrip Investors..wanting to buy (ITE) shares.. ie greater demand for (ITE shares... # greater access to capital...)

Watch this space.

Regards,

robbo:)

ONTHENOSE

09-11-2006, 01:43 PM

[:p];)ITE, news on its way..:D:)

BSA

09-11-2006, 01:45 PM

IT&e acquires Halcyon business and bolsters financial services consulting
expertise

ONTHENOSE

09-11-2006, 01:48 PM

BSA, how did you obtain this info so quick??? not available on comsec or asx.com...[?][?][?]

robbo

09-11-2006, 01:51 PM

ite

this Announcement-- is excellent news strategically--and also will be earnings accretive, imo...

those few 14 cent in depth-- won't, imo.... last long now...

regards,

robbo

BSA

09-11-2006, 01:56 PM

quote:Originally posted by ONTHENOSE

BSA, how did you obtain this info so quick??? not available on comsec or asx.com...[?][?][?]

Hi OTN,

I use the Iress real time trading platform, so no delay on reports.

Cheers

robbo

09-11-2006, 02:01 PM

ditto bsa...

its a good one do you agree...??..

robbo

ohmyme

09-11-2006, 02:02 PM

There is another $3million on the top line. And some nice tranche prices, 15c, 20c and 30c.

djones

09-11-2006, 02:06 PM

quote:Originally posted by tommy

WTF! ITE up 15%, I am wetting my pants[:p]

I always scroll down to this post after clicking the email link to see the newest post and thinking thats it I just about wet my pants to... until i realise im on page 1 and not 17!

TheBossMan

09-11-2006, 02:10 PM

Isnt this shareholder dilution? Halcyon gets $3million in revenues, but what profits are they making? If Halcyon accepts only $2.2 million and that too in tranches, pending performance targets, it doesnt convey much as a sound organisation to be buying into.

Simply buying similar firms and boosting the revenue, but diluting the shareholding in the process is not a wise idea.

Disc: hold none

robbo

09-11-2006, 02:26 PM

ite

Hi boss,

Respetfully would like to respond ... to...The Boss...

That your proposition is 'possibly correct'....
in some instances; ...but not in this case Boss.

I refer you to:

(a) ohyme's previous today's post...and synergies to add to that....

...and....

The actual recent Case studies involving:

(1) Boom Logistics(BOL) and

(2) Bravura(BVA)

(3) IBA Health (IBA)

(4) gbst (GBT)

(5) Photon (PGA)...

.... as case studies ....for the 'other side; of this coin.

all above examples, of what you refer....added shareholder value.

kindest regards,

robbo:)

ohmyme

09-11-2006, 02:39 PM

I think its excellent. 15 employees generating on average 200k per person. If the average wage is $100k (sign me up if it is), that leaves a lot of room to squeeze out synergies and reduce costs etc.

This also opens up all the relationships that have been built by this company over the past 6 years. In addition its good that the acquisition is part share issue, it means they will still run the business like proprietors, except now the business is ITE :)

I am happy.

TheBossMan

09-11-2006, 03:25 PM

the only benefit I see is that Halcyon's staff could be used to provide support/implementation services, while ITE's existing staff focus on new product development and architectural matters.

Halcyon's client list does not offer any potential to ITE (apart from Citipower maybe).

BSA

09-11-2006, 03:46 PM

quote:Originally posted by davidrob

ditto bsa...

its a good one do you agree...??..

robbo

Yes most definitely Robbo!! I have been using Iress platform for about 4 years now and could never go back to any other platform.

Cheers

tommy

09-11-2006, 05:20 PM

ITE wins Asia Tier One bank contract[:p][:p][:p][:p][:p]

Why isn't this announced on ASX[?] Amount of contract too small[?]

tommy

09-11-2006, 05:22 PM

Oops, forgot to post da source:

http://www.bobsguide.com/guide/news/16376.html

IT&e

IT&e's products include Razor, which enables organisations to manage their market & credit risk requirements. PTX enables online trading of over counter securities across multiple asset classes. Monarque covers Front, Middle and Back office functionality for Treasury & Capital Markets products.

IT&e's Monarque Solution Secures New Customer
8 November 2006

A Tier One South-East Asian bank has signed a contract to take IT&e's Monarque product to manage its expanding FX Order business. Implementation has commenced and they are scheduled to go live in early December.

The Monarque product has been an excellent addition to IT&e’s product suite adding new clients and revenue streams. This sale marks the second implementation of Monarque in the Asian region over the past three months. It provides an excellent current platform of established reference sites to assist in further product sales in the Region.

senor guacamole

09-11-2006, 09:12 PM

great news--good research tommy, ITE never seem to give to much detail on ASX, doesnt seem to be their policy to announce every deal. anyhow the SP has stabilised nicely.

tommy

09-11-2006, 09:36 PM

quote:Originally posted by senor guacamole

great news--good research tommy, ITE never seem to give to much detail on ASX, doesnt seem to be their policy to announce every deal. anyhow the SP has stabilised nicely.

Hi senor guacamole,

mmm, I wouldn't call it "stabilized" just yet considering such small volumes traded but in any case, this is indeed good news and thought it was too good to keep it to myself (though it was tempting [:I])

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aite&draw.x=0&draw.y=0

Anyway, ITE should become a great trading stock in the months ahead, just like the early days of SEN and ENG[8D]

Flying Goat

09-11-2006, 10:36 PM

quote:Originally posted by tommy

[quote]Originally posted by senor guacamole

great news--good research tommy, ITE never seem to give to much detail on ASX, doesnt seem to be their policy to announce every deal. anyhow the SP has stabilised nicely.

Hi senor guacamole,

mmm, I wouldn't call it "stabilized" just yet considering such small volumes traded but in any case, this is indeed good news and thought it was too good to keep it to myself (though it was tempting [:I])

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aite&draw.x=0&draw.y=0

Anyway, ITE should become a great trading stock in the months ahead, just like the early days of SEN and ENG[8D]

Hi Guys

This was kind of announced during their latest quarterly update:

"In final contract negotiations for the first sale and delivery of the upgraded Monarque application to a Tier One Asian Bank"

Cheers
FG

PS Don't mean to be smarty-alec, just responding to the question someone raised as to why it was not announced to the market

PPS Still hanging in there, should be an interesting few months...

robbo

09-11-2006, 11:08 PM

HI FG & Tommy,

am with Tommy on this one...

'final contract negotiations' is different than "done deal".

It's like the Middle East Peace talks and negotations....although reckon I would be a bit hard to persuade.... that they had ever done.... a 'done deal' ...

Well done Tommy on the bob guide find.... wow. very impressive mate.

PS. Suspect we might see this on ASX tomorrow.

Kindest Regards,

Robbo:)

robbo

10-11-2006, 01:24 PM

it&e (ITE)

ON second thoughts-- and going by it&e history of such contractural announcements-- Reckon this will, imo, be probably--'bundled' with other New Contractural -Announcements-- ;)-- in next few days -- as they tend to come....errrr;)imo, ..... ...in two's and threes ....:)

Kindest Regards,

Robbo :)

robbo

10-11-2006, 02:07 PM

(ITE) it&e

Hi everyone,

On 1/11/06 I guestimated the following.....here at Sharetrader; on this (ITE) Thread...

Below therefore, is a exact Re-Print of my post (unedited) from that date: -- 1/11/06....with my new and revised comments below it.... .

it&e (ITE)

Good Morning everyone..

what a excellent discusion.....

A famous Venture Capitalist;(Andy Bechtolsheim ), who was the very first Angel Investor, to 'back' Page & Brynn.... of Google fame [:0]!!-- ... back in the late nineties -- with initally, US $1 million and then 9 months later, with US $20 millons (incidentally, this guy Bechtolsheim ...

.... certainly, history proves, had the Midas Silicon Valley touch, as was on the Board as a founding financical VC also for Sun Micro Systems and Yahooo)..... a few years before...

Anyway, this Venture Capital guys, Andy Bechtolsheim ....

..... had a famous saying and metaphor -- .... about the development of Revenue and Profit flows with such relatively new real potential genuine Software and Internet based companies ... (Google's first trading profit ..... was $7 millions.... btw)...

And it went something like this....

With first Revenues/Profits it is, (in his view) like a cloud which becomes a light mist ... and then just a few sprinkles or faint falling rain- drops .... firstly intermittent and patchy... nothing much...really, ...but ...brewing though ....

... Then it becomes a steadier sprinkle.... on and off, but a bit more; then ....the first rain drops ...

Then Bechtolsheim said, it becomes a summer shower, and emerges as a short burst of rain with the likelihood of developing ionto something much more.......

And, as the 'clouds'--- of potential (in the pipeline)-- revenue grows and grows, Bechtolsheim recounts, and the sales demand and the new contracts pipe-line becomes more pregnant with possibilities-

...- -- It then becomes;.... a stronger and steadier heavy healthy rainfall.... and then it really contiunues to settle in...into it becomes a dam filling down-pour -- which breathes life into all the streams and fields & eco-systems/networks-- around it .....

--... And then, Bechtolsheim concluded, as the rain becomes more pronounced and certain; it then just really BUCKETS .... down ....:):)

For mine, this Bechtolsheim (Venture Capitalist) metaphor/ analogy; .... is now .... indeed, what we are currently seeing ... steadilly .... and increasingly .....movre quickly.... now.... unfolding with increasing speed, with it&e... (ITE)...:)..

So then, imo, Where are we now ..... [?]- ?? [?]

We are, imo in the very brief & short, 'window of opportunity '-- which is the 'calm before the storm'-- and the stronger healthy rain falls ... are just before us...

Pub's Prediction Time then....

(1) First likely -- imo--Catalyst .

Late this week-- Thursday or Friday-- [?](as a outside chance-- say 25%--??[?])--but probably next week-- imo, with the Melbourne Cup being the main practical 'announcement obstacle'--I reckon we will have a high, make that a very high chance of seeing....some AIM London News...along the lines of the Official 21 Day --pre listing Notice--.

This will be a significant trigger because investors will want in before the Londion Investors are appraised of everything we ahve gone through on this thread.

Second imo Catalyst

Between 15 November and 11 December 2006.

I also assess, that.... November/December has a very high probability of New Deals & Contracts out of either: Canada, India, United Ki

ONTHENOSE

10-11-2006, 04:17 PM

hey robbo,

i think this should say 'NOVEMBER'????;)

(The 27 cents target will now probably -- by next Friday-- ie: the 17th December--24 hours either side...which is said...)

Not being critical, just letting you know... [8D]:D:)

robbo

10-11-2006, 04:25 PM

ite (ITE>

Thanks On-the-nose...my typeo...boo boo... [B)]:)

Regards,

robbo:)

tommy

11-11-2006, 04:48 PM

ITE starting to appear on some news sources:

http://www.sharetrader.co.nz/post.asp?method=Reply&TOPIC_ID=23637&FORUM_ID=50

New Isssues Roundup

Fri 10 Nov 2006
LONDON (SHARECAST) - London’s main market was where it was all happening in an otherwise quiet week for IPOs, with AIM hardly figuring in the action.

Styles & Wood, a provider of retail property services to UK retailers listed on Tuesday having raised £71.9m at 150p a share, valuing the group at £96.7m.

Selling shareholders pocketed £54.15m, while the company gets a net £16m to provide it with greater financial flexibility to pursue acquisitions and pay down debt.

Meanwhile, £300m public infrastructure fund Bab****& Brown made it to market on Thursday, but traded little changed.

Earlier, Russian steel giant Severstal priced its London IPO at $12.50 per share and global depositary receipt, raising $1.063bn, less than the $1.7bn the market had expected.

The fundraising, which implies a market capitalisation of around $12.7bn, attracted strong, high quality institutional demand across all regions, said the group.

The shares were offered by Frontdeal, an entity under the control of Severstal's controlling shareholder, billionaire chairman Alexey Mordashov, who lowered his stake in the firm to around 75%.

Severstal said it intends to use the proceeds of the Capital Increase to continue improving the quality of its production facilities and improve operating efficiencies throughout its global operating platform.

It also wants to take advantage of potential opportunities to expand its core business, including the funding of potential acquisitions of assets and participation in joint ventures.

Chelyabinsk Zinc Plant joined London’s main market Tuesday following a placing of GDRs at $16.75 each, valuing Russia’s largest producer of zinc at $853m.

The global offer of 1.68m existing shares, or around 33% of the company, was accompanied by more than 325,000 shares offered on a pre-emptive basis to existing shareholders.

Ten GDRs represent an interest in one share.

“We intend to employ the proceeds in debottlenecking our plant and expanding our mining assets to reach full self sufficiency in concentrate by 2010,” said chairman Sergei Moiseyev.

Elsewhere, IT&e, a provider of software solutions and consultancy services to the banking sector, said it is planning to list on London’s AIM next month.

The group, headquartered in Sydney, Australia and quoted on the Australian Stock Exchange, wants to list on the junior market under the LSE’s “fast track” procedure.

The firm provides consultancy services, multi-asset class trading platforms and risk management solutions and boasts customers such as HSBC, ANZ and Commonwealth Bank of Australia.

ONTHENOSE

14-11-2006, 02:35 PM

Not alot going on on the ITE front..[:0]

Could be the calm before the storm....[^][:p]

As Robbo says 'Patience. ... Just, a little more ..... 'patience'

senor guacamole

14-11-2006, 02:51 PM

i been walking the streets tonight,
just trying to get it right,
its hard to see with so many around,
i know i dont like being stuck in the ground,
and the streets dont change but maybe the names,
i dont got time for no games,
and i need you,
yeheyeah cos i need you,
just a little patience..
yeah yeah.

gjc

15-11-2006, 12:57 PM

Interesting to see that Jane Yuile has today announced that she is withdrawing her nomination to the board of ITE. She and the company cite the timing of the AIM listing as the reason, as it does not allow her enough time to complete her due diligence to be able to sign off on the AIM listing as a director if she was successfully elected to the board at the upcoming AGM.

Sounds reasonable, although I do wonder whether the AIM listing is not just a timely excuse to avoid what might have been an unwanted board level squabble at the AGM? Nice also to see that Jane has been offered a consultancy role with the company. Nice for Jane, that is.;)

Any other thoughts or comments out there in ST land?

Regards, GJC.:)

robbo

15-11-2006, 04:29 PM

it&e. (ITE)

Presure on depth is now building.

Investment Presentations for (ITE) due to start -- This Week-- to English investors.... as (ITE)-- get ready for December 3 launch....

Also hoping to see .... a bundle of new Contractural deals / announcements real soon now......as welll as JBAssett Management write up....

this space, imo, getting much warmer and interesting now...

Kindest Regards,

Robbo:)

BSA

15-11-2006, 06:12 PM

"Pressure on depth is now building."

A bit of a Mexican stand off Robbo,...someone needs to throw some Jalapino's in their beans to spice up the action:D

Cheers

robbo

16-11-2006, 01:53 PM

it&e. (ITE).

Clue.

Four days or so ago,....

Who just WON ...??---;)

...."... the Technology Company of the Year Award -- by Structured Risk/Derivaties Products Products Magazine --for providing analytics software & technology solutions for retail and private banks across Europe...?[?]??..."

Regards,

Robbo:)

PS. An even bigger and as/more significant second.... Clue... --as regards to 'timing issues'-- ;) either later this afternoon--or tommorrow .... at the latest ....

tommy

16-11-2006, 06:14 PM

quote:Originally posted by davidrob

it&e. (ITE).

Clue.

Four days or so ago,....

Who just WON ...??---;)

...."... the Technology Company of the Year Award -- by Structured Risk/Derivaties Products Products Magazine --for providing analytics software & technology solutions for retail and private banks across Europe...?[?]??..."

Regards,

Robbo:)

PS. An even bigger and as/more significant second.... Clue... --as regards to 'timing issues'-- ;) either later this afternoon--or tommorrow .... at the latest ....

Hi robbo,

Can you send us the link to that magazine? Want to read the content, thanks mate:)

ONTHENOSE

17-11-2006, 12:44 PM

hi guys,

would be good to read the article...[8D]

cant find it online anywhere...:(

mike

Flying Goat

22-11-2006, 06:27 PM

quote:Originally posted by tommy

[quote]Originally posted by davidrob

it&e. (ITE).

Clue.

Four days or so ago,....

Who just WON ...??---;)

...."... the Technology Company of the Year Award -- by Structured Risk/Derivaties Products Products Magazine --for providing analytics software & technology solutions for retail and private banks across Europe...?[?]??..."

Regards,

Robbo:)

PS. An even bigger and as/more significant second.... Clue... --as regards to 'timing issues'-- ;) either later this afternoon--or tommorrow .... at the latest ....

Hi robbo,

Can you send us the link to that magazine? Want to read the content, thanks mate:)

Roger that Tommy, can you provide us with a link please Robbo?

Over and out.

FG

wack

22-11-2006, 06:56 PM

The Link . . .
http://www.bobsguide.com/guide/news/16410.html

tommy

22-11-2006, 07:11 PM

quote:Originally posted by wack

The Link . . .
http://www.bobsguide.com/guide/news/16410.html

Thanks for da link wack, now I see the picture... here's da text:

Structured Products Names NumeriX “Technology Company of the Year”
# New York, NY - 10 November 2006
# Calls software provider an “analytics powerhouse”

NumeriX, the leading analytics player in derivatives pricing software, announced today that it has been named Technology Company of the Year by Structured Products magazine for providing analytics software and technology solutions for retail and private banks across Europe.

According to Structured Products’ editors, writing in the November 2006 issue of the magazine, NumeriX has secured the award because it “has built strong partnerships with other technology firms to ensure its analytical software can be deployed in most banks’ systems. Its software has improved the efficiency of the European structured products market by enabling retail banks to price and risk-profile their own products.”

The Structured Products European awards, which were announced in the November issue of Structured Products, are awarded annually and announced at the Structured Products Europe event in London, November 7-8.

NumeriX’s industry-proven analytics ensure consistent pricing across all asset classes and can be embedded, resold, leveraged for consulting or used as a stand-alone pricing tool. The company’s unparalleled expertise encompasses quantitative research, product support and financial engineering teams, including experts in theoretical physics, computer science and applied mathematics.

"With this award, Structured Products is affirming the hard work we have done to deliver value to our partners and customers in this rapidly growing segment of the market,” said Nick Haining, managing director, EMEA, for NumeriX. “We are proud of our work in this sector and honored to receive this award.”

_______________

NOW, for those who don't remember here is an old announcement of ITE and Numerix becoming buddies:

http://www.ite.com.au/pdf/latestnews/IT&e_and_Numerix_sign_partnership_agreement.pdf

IT&e signs new partner agreement with NumeriX To Deliver Institutional Investors Complete Coverage of all the Major Treasury and Lending Asset Classes

New York / London/ Tokyo, April 11 2006 – NumeriX, the independent leader in cross-asset derivatives pricing and valuation software, has partnered with IT&e, a leading provider of technology solutions to the financial services industry. NumeriX analytics have been integrated
into Razor, IT&e’s award-winning risk management product, to provide additional support for pricing exotic derivatives in an Enterprise Risk Management environment.

“The partnership follows an increasing demand from institutional banks for more exotic products,” said Steven R. O’Hanlon, President and Chief Operating Officer. “Adding NumeriX analytics to Razor will offer institutional investors a more complete solution when managing
market and credit risk.”

The partnership enables IT&e to reduce Razor implementation effort for any exotic products that were not previously supported. Prior to the partnership, any product gaps were addressed by the client implementing in-house pricing models via Razor’s C++ API.

As a result existing clients will now be able to broaden their product coverage and take advantage of the booming credit market. In addition, banks will also have the ability to create any new complex instruments within days due to the shortened development and testing time,
thus improving their market position.

IT&e CEO, James Maranis, said, “With a staff of over 40 Ph.D. researchers with expertise in numerical algorithm research and scientific computing, partnering with NumeriX will provide Razor customers with access to industry leading deri

ONTHENOSE

22-11-2006, 07:21 PM

very interesting...[:p]

Good work Wack... i was under the impression ITE won the award, no wonder i couldnt find anything about it.. (stupid...)[:o)][:I][|)]

Flying Goat

22-11-2006, 07:53 PM

Cheers Wack, and thanks Tommy for putting it all together and posting up ... quick and sharp, as always you are mate! :)

Should be interesting when they hit AIM in the next couple of weeks, any predictions on take up by investors or impact on local (ASX) price?

I have never observed a company that i owned go through a dual listing so have no idea what to expect, just hope it doesn't bomb... [:0]

FG

tommy

22-11-2006, 08:12 PM

quote:Originally posted by Flying Goat

Cheers Wack, and thanks Tommy for putting it all together and posting up ... quick and sharp, as always you are mate! :)

Should be interesting when they hit AIM in the next couple of weeks, any predictions on take up by investors or impact on local (ASX) price?

I have never observed a company that i owned go through a dual listing so have no idea what to expect, just hope it doesn't bomb... [:0]

FG

Hi FG,

No problem mate, we are all here share our knowledge to improve our chances of making a buck or two:)

I haven't held any dual-listed shares either but I think ITE will try to garner enough interest from potential investors when they give an AGM presentation next week. They will be stupid not to exploit that opportunity.

The Asian Tier I bank contract hasn't been released on ASX perhaps for that reason? Let's hope they have a few more up their sleeve.

I am also wondering whether UXC will be interested in increasing their stake...

I would be surprised to see the listing "flop", because the AIM listing price surely would have to somewhat refect ITE's share price on ASX, and any arbitrage would eventually have to be absorbed (e.g., if ITE lists on AIM at one pence, I will buy heaps and sell them on ASX and make a profit from the difference in price).

ONTHENOSE

29-11-2006, 03:05 PM

Will be interesting too see what happens today at the AGM...[?][?][?]

Hopefully all posotive news...[:p]:D[8D]

Does the report usually get released on the ASX same day????

ONTHENOSE

29-11-2006, 03:10 PM

onthenose,

yes it usually does.. hehe..

Presentation/report is already out..:)

tommy

29-11-2006, 03:25 PM

What a lame presentation... nothing in there that we don't already know, YAWN.

ohmyme

29-11-2006, 03:56 PM

Brilliant presentation I thought. This is a drop dead no-brainer for me and I am targeting on an absolute base case net profit result of $4million net and market cap target of $100million for full year 07.

Here is my logic Tommy:

They are targeting 22 clients and product/service revenue breakdown of 60/40% for FY 07. These guys havent missed a beat yet, so I think entering these figures into a valuation model is low risk (remember they are ultra conservative).

Service revenue for 06 came in at ~$8million or +30%. Lets linearise this, however based on acquisitions and state of market I am sure this will grow faster, but lets be conservative. $8 + 30% = $10.4 million in service revenue. If we divide this by .4, this means they are forecasting $26million total revenue for 07 (including product sales). Now we know that cost base for ITE is around the $15million mark. Lets add $2million because their organisation is growing. Lets even be ultra conservative and round the cost base up to $20million and add $5million to their expense base (this is way too much, bet lets err to the side of caution). This leaves $6million profit before tax and other costs. There is no debt, include share based costs etc, and you can even normalise the result. Target normalised full year profit for me is around that $4million mark. Annualise this out to a PE of 25, because of who their clients are and peers etc and you get a market cap target of $100million.

Currently ITE has a market cap of only $30million. Still +2 bags to go people, and thats being very conservative. ITE is still my biggest holding and I keep accumulating.

Funny how differently we read things Tommy.

good luck and cheers.

wns

29-11-2006, 04:10 PM

quote:Originally posted by ohmyme

These guys havent missed a beat yet, so I think entering these figures into a valuation model is low risk (remember they are ultra conservative).

Haven't missed a beat? They haven't made a profit for five of the last six years!

quote:
Annualise this out to a PE of 25, because of who their clients are and peers etc and you get a market cap target of $100million.

PE has nothing to do with who your clients are.

And... there's no 'E' in the PE, not yet anyway.

I'm steering well clear of this one.

djones

29-11-2006, 04:12 PM

quote:Originally posted by wns
I'm steering well clear of this one.

I was out on Monday at 13.5cents after buying at 16.5. Ouch, didnt do enough of my own research into this one or would never have bought.

tommy

29-11-2006, 04:47 PM

Hi ohmyme,

Don't misunderstand it mate, I still hold ITE and like what they are doing, but it's just that they seem to have forgotten some important updates regarding recent announcements made on ASX, namely:

(1) The likely timing of AIM listing (especially because this was the reason given for the withdrawal of Jane Yuile's director nomination... once listed on AIM, will she seek directorship again?)

(2) Significance of acquisition of Halcyon business

(3) Contracts concluded recently

Did anyone got to AGM? Would like to know whether any other info that was shared with shareholders that is not covered by the presentation.

http://sa.iguana2.com/cache/dff19f76159712154c9ffaea0b8e68d6/ASX-ITE-266477.pdf

pimpit

29-11-2006, 04:48 PM

quote:Originally posted by djones

quote:Originally posted by wns
I'm steering well clear of this one.

I was out on Monday at 13.5cents after buying at 16.5. Ouch, didnt do enough of my own research into this one or would never have bought.

I cant believe you kids, some of you got in on davidrobs advice and now dumping the stock. whereas davidrob gone?

djones

29-11-2006, 04:52 PM

quote:Originally posted by pimpit
I cant believe you kids, some of you got in on davidrobs advice and now dumping the stock. whereas davidrob gone?

The best way to learn is through your own error. I put hardly any money into it because I saw it had some problems to overcome, which it hasnt managed to, i could of continued holding but i figured better to combine the money with a recent profitable sale to buy a different stock (namely MTN which has just broken resistance at 1.21).

ohmyme

29-11-2006, 04:59 PM

To be honest I think the quality of this site drops without Robbo's posts. And I have a pretty good feeling as to why he has stopped all together.

So your telling me Tommy that you interpreted the presentation the exact same way as me? Interesting considering how boring you thought it was and how good I thought it was. I actually believe that this has been one of the more revealing and aggressive presentations made by the company.

What other insightful data did you glean from the presentation? There is plenty more there. I think this presentation clearly shows the scale of the business moving forward. And you can interpolate how much the product sales are worth on average to ITE.

cheers.

ONTHENOSE

29-11-2006, 05:11 PM

As i recall in previous posts , Robbo was going to have a break till end of November...

Im sure he will return in good time.. [8D]:D

mike

ONTHENOSE

29-11-2006, 05:59 PM

ohmyme,

I AGREE.. STILL PLEANTY OF POTENTIAL, IMO.. AND NOT A BAD PRESENTATION, CANNOT SEE ANY REAL NEGATIVES.. JUST TOPPED UP AT .135[:p]

NOT SURE IF WILL SEE AT THESE LEVELS AGAIN AFTER TOMMOROW..:D

Flying Goat

29-11-2006, 06:25 PM

Hi All

Good to see this thread back and well, and the debate lively as ever. My thoughts on the AGM notes:

- Agree with Tommy that some key points were not in there but if anyone attended perhaps they could let us know if those points, or any others were discussed. [?]

- For me there was a new piece of information (it may have been in previous announcements but I did not pick it up) was that when they say "shortlisted" they mean a list of just two :). This was very positive for me given that I previously assumed "shortlist" to be say five (as in many cases over twenty bidders are putting in proposals). So, ohmyme I must say I now agree with your comments a while back that this is a hold for sure given a) the statistical probabilities of contract closure and b) the likely impact on the share price when the contract closures are announced as this stock seems to attract cause quite a flurry in the market when something happens.

- Did not really agree with the comments about listing on AIM being drivers of shareholder value, sure it will raise their profile a little but it will be under the scrutiny of expert analysts who will be comparing with others on a global market place, with a market cap of 14 million pounds I suspect these analysts will want to see profit before publishing it as a buy - they tend not to go in for speculative plays because it can cost them their reputation if things don't work out.

Anyway... here's to HOLDING and HOPING.... for the best [8D]

FG

Flying Goat

29-11-2006, 07:48 PM

quote:Originally posted by absolut-advance

If you can not understand IT&Es potential and margin of safety..... and by that i mean the "companies margin of safety" not the share prices margin of safety, then you should not be holding.

Some good points AA, but the one above I strongly disagree with. Margin of safety, relative to the stock market, is a term originally coined by Benjamin Graham over 75 years ago. Its meaning on Wall St is buying a stock at below (two thirds of, to be precise) its net current asset value - regardless of all other factors. As a company, ITE definitely does not fit this description and it is perhaps you who does not understand the "margin of safety" concept relative to this company. Robbo often also used this term willy-nilly. A company with potetnial is one thing, and medium term buying support at certain price levels is another - but if you confuse these with margin of safety then you are not aware of the risks of the company, and are fooling yourself.

FG

WASL

29-11-2006, 11:11 PM

I have read the presentation with interest. In my view it is very low key and appears to be conservative - maybe not to scare the European markets with the sort of hype we have been known for in the past. I am a bit sorry there were no major announcements but; then again, they should have been pre-announced to the ASX.

I own quite a few, bought at a tad under $0.19 (on average) and therefore am sitting on a paper loss. Am I tempted to sell - Not on your Nelly! I am quite prepared to hang on for a year or two to see it blossom. why? A good product range and (seemingly) a few good contract prospects. Yes I also like "short lists" of 2 rather than 5.

Good luck as always

WASL

Flying Goat

30-11-2006, 06:47 AM

quote:Originally posted by absolut-advance

Hi FG , yes i have read The intelligent investor by Benjamin Graham (yawn),

as the term represents value.... was what i was getting at...

in my own definition i meant there is "limited downside" in just my opinion based on fundamental progress and done deals.

infact i have a copy sitting right next to me now on the book shelf, and do understand the concept you refer to.. and i did incorrectly use the term.

but I did not mention Benjamin Graham in my post,and do believe IT&E at this point holds a large margin of safety at these prices(in my own defination), also i do not idolize great past investors and there terms and techniques. But sometimes may use their terms loosely in my own way (sorry).

Will try to pick my words a little more carefully for you FG

AA
[quote]Originally posted by absolut-advance

Fair enough AA :) You're onto it, and if this is the case then my call was un called for..! Sorry about that mate! But I will have you know that i do idolize at least one investor from the past and present, and often ask myself what he would do in any given situation in the sharemarket. That would be Buffet as he always seems to have a smple way of cutting thorough the bullSh1t and making good decisions.

Cheers
FG

ohmyme

30-11-2006, 03:36 PM

For all you worry warts out there, I have had news from the pub from a now confirmed ex-poster.

The AGM for ITE went well, and the key point is found on page 13 of the presentation. Cast your eyes down to the second line:
"Contract negotiations: Close date Dec/Jan -> Total: 4"

I will leave the rest of the interpretation up to you guys. However if you need some ball mark figures to plug into your calculators then $3.5million has a nice ring to it.

To sum it up: HOLD.

cheers.

senor guacamole

30-11-2006, 04:26 PM

ohmyme, has robbo like the lorax, picked himself up by the seat of his pants and dissapeared into self imposed exile? must be tough at the top! i for one have a lot to thank him for...and would be a little surprised if he didnt read if not post. cheers Robbo.

ohmyme

30-11-2006, 04:31 PM

Straight from the horses mouth, I really think this is the last of Robbo on sharetrader. He has had some absolute gems lately: HSK, ANG, ISS, ITE, RFG, IPN, MMS, EKA, PBD, EMI, CLX etc etc the list goes on and on.

Shame really, the opportunity cost for readers and posters on this site is going to be huge.

cheers.

ohmyme

30-11-2006, 06:13 PM

Do people understand what contract negotiations means? I am pretty sure its when those funny lawyer types get involved.

ohmyme

01-12-2006, 04:00 PM

Update of ITE on h*tcopper.com.au from Robbo.

cheers.

tommy

01-12-2006, 06:19 PM

Hi all,

Now it's December so we should expect AIM listing to go ahead very soon.

Share price has stabilized so I have been topping up more ITE @14c in anticipation of increased interest in ITE over the next several weeks.

Was gonna wait for it to get even cheaper but the dive seems to have stopped for the time being...
http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aite&draw.x=0&draw.y=0

Market overall is wobbly at the moment, so it's worth keeping cash aside to buy stocks on the cheap when panic sellers dump their holdings[:I]

ONTHENOSE

01-12-2006, 07:28 PM

Cheers Ohmyme, ;)

For those who are not members off hotcopper.. Robbo has a very interesting point imo..

-------------------------------------------

AS FOLLOW:

Also some have overlooked a certain agri-business Listed Co--starting with 'T'-- new account that it&e have won--(see AGM presentation again)--

----------------------------------------------

if you look on Page 10 of the AGM presentation.. TIMBERCORP is listed as a client.[:p]:D

I cant recall seeing an announcement for that contract.. [?]

mmm.. imo very interesting..

wack

03-12-2006, 09:04 PM

Words from Robbo, cut n pasted in FULL and unedited from Hot Copper;

IT&e . ( ITE )

Hi everyone;

Normally; I do not like to express..... ( perhaps, as explicitly & specifically.) -- which combine to form ..... Some of the reasons for my own personal variant perception, re: what I assess & perceive, as to why; imo, this (ITE) stock; is now .... such a high potentially favourable and exciting time for IT&e investors. ...

But first some general comments regards stock analysis and stock picking; that I think usually applies...

In deciding to invest long term in a value stock, as on the other extreme, also in arbitrage - as indeed in say foreign policy making - or, as in stock market investing; you have to be able, at some point be able to 'pull the trigger', or potentially miss an opportunity..... even when your information is imperfect and your questions cannot all be answered....

My view, is when you can perceive after good diligence on –what is the downside--- ultimately to make excellent money and returns, .... imo... you have to ultimately ... make a risk weighted decision:

ie: Should I now make this investment or not?

My view, is that you begin with probing questions; and end having to accept that some them will be imperfectly answered - or even that minor questions, might not be able to at this current time, answered at all.

And you have to have the stomach for discount adjusted "risk."

My first point of departure personally--is to carefully ask: "What is the down-side???

IF.... I am not comfortable with the truthful objective anser to that important question, ....then I simply then say: .... "Pass" .....!!

Now to, ... (imo) the NUB and centre, of the (ITE) opportunity & maybe even a small insight or two.

.... Right now, imo, a rather rare 'window of opportunity' exists, imo at this short time period; where Global mega Economic Forces, converge with Unique Sustainable Competitive Proprietary and Trademarked Advantages, in a stock like (ITE).

These ( unique sustainable competitive advantages – U.S.C.A’s) -- has been, ....on the available evidence, imo, been now adequately proven consistently and continually recently – by Large Multi-Nationals contracts; and--- Needing To retain and Maintain-- Mission Critical Derivatitive Management & related Credit Risk Software, in the High End Finance and Banking Sector.

--... So then; ... Why were IT&e (ITE) .....management, at the IT&e AGM, on one perspective, relatively; .... “reluctant to give bullish financial forecasts ...??.... at last week’s (ITE) AGM...?? ”

The answer to this question, imo, is a three letter, simple one word acronym — namely: -- ‘A.I.M.’..... (Alternative Investment Market which is part of the LSE (London Stock Exchange)....

Let me enumerate this some more.

It is expected for it&e (ITE) -- to be listed on the AIM London Stock Exchange, any day now.

And here-in, lies imo, the reason for the subduedness, of it&e’s (ITE) relative lack of future financial forecasts ...

London Stock Exchange, is very highly regulated, and has recently demonstrated (and also its charter and rules & regulations by member must abides, imo clearly reflect this) -- a track record compared to the ASX, of clamping down much harder than the ASX, on any of any of its listed member companies; on any whiff of Future Forecasts, or overly bullish statements..... being stated.

So the act of now stating a bullish outlook,(.....at last weeks IT&e (ITE) AGM......) would be a counter-productive move....and might upset the AIM listing.

Even if that outlook was internally totally felt and believed,(which I suspecty IS now indeeed the case)-- and the case was explicitly explained in great detail and outlined as such -- (... by the Board of it&e (ITE) --) -- .....

>>>> .... right at this present ‘ Moment’--- of being admitted to the AIM London Stock Market Trading Board...(this comingmweek--say Wednesdsay--??)-- in the next few days-- this actually could then jeopardise this very objective... ie: for (ITE) to be

Rainesy

05-12-2006, 11:44 PM

imo Robbo is a gun. I'm making plenty from some of his other tips and just waiting patiently for ITE to take off. It has the potential and will definatly make the move north.

imo hold because you'll regret selling now.

Rainesy

ohmyme

07-12-2006, 11:14 AM

There it is, AIM listing finalisation. Looks like they raised much less than originally specified, at an equivalent price of 12c which is ok considering the size of the placement. That means there will be roughly 13million shares issued and trading will commence next Tuesday. Thats another tick on the execution belt for ITE management, well done guys.

Now bring on the contracts and an onward march to $1.00.

cheers.

Flying Goat

07-12-2006, 05:36 PM

quote:Originally posted by ohmyme

There it is, AIM listing finalisation. Looks like they raised much less than originally specified, at an equivalent price of 12c which is ok considering the size of the placement. That means there will be roughly 13million shares issued and trading will commence next Tuesday. Thats another tick on the execution belt for ITE management, well done guys.

Now bring on the contracts and an onward march to $1.00.

cheers.

Mind if I ask why exactly it is such great news that a) they only achieved 46% of the targeted capital, and b) they achieved this result even while selling outsiders a share of our business at a 25% discount to the last two month's average share price?

Does anyone else have a view on this?

Cheers
FG

ohmyme

07-12-2006, 05:50 PM

They are keeping dilution to a minimum. What this announcement tells me is that they don't need any more cash, and are expecting plenty of it through other means.

Its like Christmas shopping lately. I can just smell the frustration in those recent ITE sells.

cheers.

ohmyme

07-12-2006, 06:13 PM

I think the stage is all but set with this one. Meekings has his 2 million options. AIM is finalised with even less dilution than was previously flagged (this is good news).

All we are waiting for in the short term is formalisation of the next 4 contracts, and longer term -> exposure to an IT market where the annual spend is in the billions.

Recently been switching out of ANG (everyone is in love with this one) into ITE (noone likes this one).

cheers.

Flying Goat

07-12-2006, 06:23 PM

quote:Originally posted by ohmyme

They are keeping dilution to a minimum. What this announcement tells me is that they don't need any more cash, and are expecting plenty of it through other means.

Its like Christmas shopping lately. I can just smell the frustration in those recent ITE sells.

cheers.

True enough with regards to the lesser dilution, I agree. Was not pleased at the discount though. Also not sure I agree that they were aiming for the lower amount, given that they signalled their intention to go on the acquisition path - bu tnever the less they do have a very healthy cash balance already, so maybe you are right. By the way ohmyme, if you thought I was an ITE seller, you're mistaken as I still hold most of my original buying, about 170,000 shares. Don't get me wrong with my questioning, I think selling would be reckless right now, given that we know that a contract or three will be clinched over next month or two... and that AIM is more likely to provide upside that down... but still I do not mind when company's issue shares at discount to existing shareholders, but issuing to outsiders at such a discount did not impress me that much. Anyway, not that relevant to the underlying business, so I am not too phased... just bring on the contracts... and the cashflow, only then will there ebe something to sing about.

Cheers
FG

tommy

07-12-2006, 06:29 PM

HI FG and Ohmyme,

I am with FG on this one, anyone who tries to raise capital would aim to maximize the amount they can raise prior to the listing... the claim that "they kept dilution to minimum and didn't need more capital anyway" is absolutely absurd. A company in the growth/expansion stage could ALWAYS do with more working capital, especially if it operates and plans to grow aggressively in more than one country, especially if future short-term cash flows are unpredictable due to contract lumpiness, not to mention the comfort of having enough cash to execute acquisitions if needed.

Target number of shares to be issued was 27 million shares, they explicitly stated this in their previous announcement regarding AIM listing. Yet, the number of shares actually issued was a bit over 12 million.

Simple conclusion is that demand didn't meet supply even at 12c in this case! Let's see how ITE performs on AIM after 12 Dec, the day on which it starts trading...

Anyway, I still hold ITE and am happy to continue doing so at least for the time being. The company is making progress as planned so far, and all we have to do is wait is for a few of those contracts to be signed.

ITE's worthiness will become clear in 2007 no doubt;)

ohmyme

07-12-2006, 06:43 PM

Hey Tommy is your holding missing a 0 at the end of it? or were you referring to $$$ amounts. I disagree with what you say. I just think this is another case of management being conservative, and also new data materialising after the the initial target was made. Like 4 extra contracts evolving into the negotiation stage.

This is all about capital management. Why issue shares at 12c, when they can formally announce some contract wins, and then issue more at much higher prices for the impending Meekings' deals. They have plenty of cash in the kitti, plenty of contracts on the horizon. Remember where the contract money is going to be coming from? It isnt going to be in aussie dollars. Again Tommy we are on different pages - but thats cool. At least we share a common love with RFG and fatty donuts ;)

cheers.

tommy

07-12-2006, 07:04 PM

Hi ohmyme mate,

Yeah we might be on different pages but don't misunderstand, I do still hold $30k worth of ITE shares and love the fundamentals and the future potential of ITE.

I personally don't like companies that issue shares from time to time (I'd rather them place shares all at once if ever) because I feel ripped off with every dilution, unless the placement is limited to existing shareholders. Just my personal preference, that's all :)

ohmyme

08-12-2006, 02:18 PM

Had some more news from the pub, and its all good.

1. re Size of capital raising -> Why raise more money when you don't need it. There was no shortage of demand.
2. Steady sequence of announcements expected through December.
3. More detail regarding the C word before Christmas, and there will more than 1.
3. Longer term ITE is a goodie. As a hint Algorithmics was bought out 2 years ago for around the $1billion AUD mark :) ITE are winning a lot of their market share.
4. Expect product sales up 400-500% by June.
5. Share price target of 50c by end of Jan/Feb next year.
6. Longer term shaping up to be a $2.00+ share.

cheers

stockpanther

10-12-2006, 02:57 AM

Hi guys - I'm really umming and arghing over whether to take a stake in ITE.

Quite simply I see the potential you guys have talked about..... 1 RAZOR sale to a Tier 1 bank will bring in revenues of 3 mil and a solid half mil maintenance contract each year. I've seen the pipeline and it looks pretty nice...I want to buy in because I think the potential is absolutely huge ....but.....

I really have a few concerns and unkowns that are still stopping me from taking a stake (i'll list them randomly here, with a few questions that others may be able to answer?)

- firstly....ITE has reported that it is just down to them and another company on a number of proposals's .... remember however a 3rd competitor still exists -> the possibility that nobody will receive the contract, this does happen alot in the software world.

- ITE has operated for a long time and never been profitable. RAZOR and PTX are products that have been around for a few years...why hasn't ITE been able to be profitable yet...given this past record why should we have confidence in ITE's ability to deliver profits indefinately into the future? (I was more comfortable in purchasing ISS for this very reason -> ISS has a proven record of profits)

- Basel II - When does this come in exactly and do all banks need to comply with it?

- Highly competitive industry? - In early presentations around 2004 ITE talks about how many banks & financial institutions there are in the world....yet ITE only have a limited client base and are only engaged in proposals with a small number of firms. If BASEL II compliance is mandatory world-wide what are all the other banks doing in the world? Might be some other products that offer better value out there?

- RAZOR take up outside Australia? -- got HSBC onboard which is a positive...but really shouldn't this have been a catalyst for more RAZOR sales in a shorter time frame?

In short I love the research that has been done in this thread on ITE - very impressive level of detail. I can see the massive upside that exists here....I guess I'm just a bit questionable of managements ability to deliver profit.....if they are unsuccessful on most of these contract proposals what happens then?? Seems like we are really at make or break stage?!?!

Flying Goat

11-12-2006, 02:08 PM

Judging by SP activity today, one might speculate the first of the latest shortlist contracts has been signed... on the dotted line?!

FG

ohmyme

11-12-2006, 02:21 PM

I couldnt believe my luck lately Flying Goat, I have been buying so much ITE stock lately at 13.5c it was like a Christmas special sale. This is only the beginning. When a formal contract gets announced watch out above.

Last time they announced a large international contract, either HSBC or ANZ, the share price spiked to 35c or so. Similar price action will happen here as well.

senor guacamole

11-12-2006, 02:29 PM

some keen buyers out there alright!! not before time, its been dormant for a while...keep it coming, cant wait to see the news

stockpanther

11-12-2006, 02:37 PM

Looks promising for a good announcement!! good luck guys

tommy

11-12-2006, 03:46 PM

Looks like break-out time is coming soon, though a bit more volume would be encouraging.

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aite&draw.x=0&draw.y=0

What happened to the great wall of china just below 20c? No more market manipulators creating fake depth?

stockpanther

11-12-2006, 09:11 PM

I really don't why I'm replying to a post like this...but anyway

- firstly, it is Basel II, not Basel Eleven.
- secondly, it sounds like ITE's software is unique, but other companies also offer different competitive advantages...it's up to a business to select the solution that best fits in with their existing systems and business processes.....if ITE is clearly the best and has no real competitors, why don't they have every bank in the world using their software Danlupi?
- thirdly, i never said ITE won't make money - there are just some inherent risks, and the investment is too risky for my risk profile and personal circumstances unfortunately.
- forthly, I see you are valuing ITE at roughly $700Mil....as of yesterday it was worth $30Mil. I never say never, but IMO ALOT of things have to go right for your $700mil valuation to be reached.

I hope you can be respectful of differing opinions Danlupi - view constructive criticisms of a company positively, as they allow you to reassess why you have made your investment decision, and be more comfortable with the decision you have made.

My opinion of ITE...I've got a nice feeling that they are going to deliver the goods and bring a nice return to their shareholders. Unfortunately my risk profile just won't tolerate uncertainty of the current situation.

oh also let me add...I do think it'd be nice to see robbo back at sharetrader. He spends alot of time sharing his opinion on a company, and a willingness to share information and critique a company should always be admired.

Flying Goat

11-12-2006, 09:29 PM

quote:Originally posted by stockpanther

I really don't why I'm replying to a post like this...but anyway

- firstly, it is Basel II, not Basel Eleven.
- secondly, it sounds like ITE's software is unique, but other companies also offer different competitive advantages...it's up to a business to select the solution that best fits in with their existing systems and business processes.....if ITE is clearly the best and has no real competitors, why don't they have every bank in the world using their software Danlupi?
- thirdly, i never said ITE won't make money - there are just some inherent risks, and the investment is too risky for my risk profile and personal circumstances unfortunately.
- forthly, I see you are valuing ITE at roughly $700Mil....as of yesterday it was worth $30Mil. I never say never, but IMO ALOT of things have to go right for your $700mil valuation to be reached.

I hope you can be respectful of differing opinions Danlupi - view constructive criticisms of a company positively, as they allow you to reassess why you have made your investment decision, and be more comfortable with the decision you have made.

Stockpanther,

Don't take any notice mate, your posts were valid and your thinking seems rational to me. As for danlupi's valuation of $3.00 well... quite amusing really! :D A friend of mine is going through the motions of preparing for Basel II at Westpac bank, they are using SAS and he reckons there are a wide range of different options available. Never the less, am happy ITE had a good day, and am comfortable they will close enough contracts to earn their keep in the next few months...

FG

ohmyme

12-12-2006, 01:40 PM

Hopefully Robbo doesnt mind. Copy from hotcopper.

It&e (ITE)

Hi gals & guys,

Been some very interesting & good discussion, re: the question:-- Where does Robbo's crazy $3.00 valuation.....come from...????-- for the company-- ... (ITE) it&e ...

Admitedly he did state a time frame of: (in 11-14 months time from the other day) ....--

-- Still: the question remains:: Where does Robbo's number ($3.00) come from; .....and what is the foundation and basis ....of this medium time term assessment & approx $3.00 + valuation...?

So here is my introductary answer... to that question....

Firstly; will say however; that I am now..... putting together .....a little further more elaborated on post .... on this point & on my basis of this hypothesis.... as we speak, and ought to have it out guys; ....>>>>--- by about ....3pm AEST -- Today.

For now though, imo, it might be worth reflecting on eight (8) --what I assess as being; likely to be.... interrelated concepts that ....when converging together..... will prove to have maximum ‘Kinetic Energy’ impact; on the (ITE) present high trajectory Growth story happening now.

These eight (8) points imo are respectively:

(a) Inimitable Competitive Qualities ..... (with especial reflection required; imo, on the multi-dimensionality of the significance of the word—‘inimitable’)...

(b) Size (in terms of billions of renewable annually USA dollars)-- of that global Market and sustained premium pricing power available in that global market.

(c) Likely response of large ....previous legacy competitors ....if threatened.

(d) Level of importance to have the best (fastest, most accurate and most powerful (in terms of algorithmic Monte Carlo real time Simulation grunt)-- computational software in this case; to give the Banks / Large global Financial Institutions .....more insight, risk management and control over tier real probability of downside Risk & their Credit exposure.... in Real Time...

(e) The importance (or otherwise) to..... some/most--??-- Banks/Financial Institutions of the ability to operate with this Real Time Risk Exposure knowledge; rather than delayed by 6- 8-12 hours .

(f) Whether this type of daily multi billion dollar volume Business Transaction(Derivatives, global Currency Trading, Asset Swaps, hedge fund money market trading, ,exotic derivatives, etc etc)-- is likely to retract, be stagnant or grow exponentially. ...

(g) In light of point (f) ... tan assessment on the likely impact on higher time to up-date now---prioritization by Banks/Financial Institutions on the point (d) and point (e) ..above.

(h) Is there any recent available empirical objective probability based mounting evidence pointing to whether Razor is indeed a inimitable Proprietary Software; giving the buyer concerned a competitive advantage in a mission critical aspect of their daily; central money market operations. Is this evidence increasing or not...?

As I said, this is mainly a ‘thumbnail sketch’; and not what I will have up on the site—by 3.00 pm today—(10 minutes approx either side)...

Final quick thought-line—yes, imo, the AIM listing is important—but not only ....in .....and of itself—in other words—what does it mean for further insight into a more probable feasible answer to point (f) above—and why so...?

Again; around 3 pm ...Today.... (Tuesday. 12/12/06)-- ; will add to this; and spell out more detail... as to what will might no only happen day after....but in consecutive days (plural_ after.. and of course my assessment of the reasons why...

Kindest Regards,

Robbo .

tommy

12-12-2006, 11:10 PM

http://www.hemscott.com/news/latest-news/item.do?newsId=38141457176294

UK smallcap opening - DA Group slips despite narrowing H1 losses

LONDON (AFX) - Narrowing losses at the half-way mark failed to support DA Group, a provider of character animation software, and the shares slipped 4-1/2 to 39-1/2.

On the new issue front, Dominion Petroleum started life on AIM at 32-1/2 pence, compared with a placing price of 27.

The oil and gas explorer company in East Africa raised a total of 5.34 mln stg (assuming full draw down on a credit facility of 1.28 mln stg) before expenses.

Again on the new issue front, shares in IT&E, a software solutions and consultancy services provider to the global banking sector, were marked up to 6.25 from a placing price of 4.75.

_____________

6.25 pence translates into approx 16c, meaning no arbitrage at the moment... boooooooring[|)]

macka

12-12-2006, 11:25 PM

Been checking this stock out. If they can close a deal or two should show some good upside. UXC as key holder gives some confidence.

underground

12-12-2006, 11:59 PM

currently trading at 6.81p ~ 17c AUD

wns

13-12-2006, 01:22 AM

quote:Originally posted by stockpanther

I want to buy in because I think the potential is absolutely huge [/b]....but.....

That's what I thought when I saw BNT at the start of 2006. Unfortunately I bought into BNT and ended up selling for a loss. Ouch!! I broke a number of my own rules with that purchase. I learned some valuable lessons, particularly in regards to assessing business risk and looking at management's track record etc instead of looking only / mostly at (and getting carried away by) "massive potential upside".

quote:Originally posted by stockpanther
- ITE has operated for a long time and never been profitable. RAZOR and PTX are products that have been around for a few years...why hasn't ITE been able to be profitable yet...given this past record why should we have confidence in ITE's ability to deliver profits indefinately into the future? (I was more comfortable in purchasing ISS for this very reason -> ISS has a proven record of profits)

Exactly...

A 10 second glance over ITE's historical financials tells me all I need to know about them. What is the likelihood of them being profitable (let alone highly profitable) in the future when their track record of making losses has been so consistent???? This is a point I've raised a number of times on this thread, but it seems that its mostly ignored and glossed over.

stockpanther

13-12-2006, 02:05 AM

I've studied ITE a bit...probably not to the same extent that many of the existing holders have...but here's my rough summation of some 'off the top of my head thoughts' that may interest some ITE holders who are looking towards the longer term.

FY07 - obviously all holders are seeming to be expecting a 'sales spike' resulting from the chock-a-block current pipeline that has been necessitated by Basel II. It seems like ITE holders have some confidence that this 'sales spike' will occur, and as such ITE will be profitable...by how much? well that depends on the amount of sales bagged, and how much the cost base has increased as a result of ramping up proposal bidding and the AIM listing etc.....whats the answer? ...i wouldn't have a clue, but I wouldn't be expecting much out of 1H07...guidance seems to be very positive for 2H07 though.

FY08 and beyond - not sure of the nature of the Basel II compliance roll-out but from this thread I seem to have picked up that bigger banks in certain locations have to comply before 2nd and 3rd tier financial institutions?....based on this I would imagine that ITE are expecting future revenues to come from signing up more 2nd and 3rd tier players, plus the maintenance revenues from their existing clients. Eventually they will look to sell further software upgrades/new products to their existing client base to make money as well I'd imagine.... Future profitability would be dependent on these sales factors vs how many costs they have to chew to service their maintenance obligations while investing in R&D to upgrade their products. This part of ITE would make me a bit nervy as an ITE holder if I took an 'investment approach' (as opposed to a speculative approach). The 2nd part of wns's post sums up this concern for me...ITE is far from proving they have a sustainable business model IMO....a decent speccy, but certainly not an 'investment' in it's current state is ITE.

Good luck to all holders - I'll be watching ITE with a close eye, the story of this company definately interests me!!

Flying Goat

13-12-2006, 07:29 AM

quote:Originally posted by underground

currently trading at 6.81p ~ 17c AUD

hi Underground,

Sorry about being the thicko in the thread but could you post a link to where we can get AIM Stock quotes becuase I cannot even work out what their ticker symbol is on aim, and the AIM website looks like a ghost town to me, and would be keen to have a look at progress over there!

Thanks
FG

Flying Goat

13-12-2006, 07:35 AM

quote:Originally posted by Flying Goat

[quote]Originally posted by underground

currently trading at 6.81p ~ 17c AUD

hi Underground,

Sorry about being the thicko in the thread but could you post a link to where we can get AIM Stock quotes becuase I cannot even work out what their ticker symbol is on aim, and the AIM website looks like a ghost town to me, and would be keen to have a look at progress over there!

Thanks
FG

Please ignore my post a bove, I managed to find it:

http://www.advfn.com/quote_IT-E_LSE_ITEL.html

Closed the day unchanged at 6.25p - turnover >3,000,000

Cheers
FG

Flying Goat

13-12-2006, 07:36 AM

quote:Originally posted by absolut-advance

Here you go......

http://www.londonstockexchange.co.uk/en-gb/pricesnews/prices/system/detailedprices.htm?sym=AU000000ITE8GBGBXAIM%20B1L5 5Y9ITEL

Code: ITEL

AA

[quote]Originally posted by Flying Goat

[quote]Originally posted by underground

currently trading at 6.81p ~ 17c AUD

hi Underground,

Sorry about being the thicko in the thread but could you post a link to where we can get AIM Stock quotes becuase I cannot even work out what their ticker symbol is on aim, and the AIM website looks like a ghost town to me, and would be keen to have a look at progress over there!

Thanks
FG

Thanks AA!

gjc

13-12-2006, 09:49 AM

Dear WNS and Stock Panther,

I thought we had all been over this "lack of proven profitability" thing before? I have to say that I agree with AA on this one. IT&E is a totally different company today compared to what it was back in 2003. The restructuring costs over this period have been great and have directly affected the profitability of the company during this time.

The bulk of the financial pain is now behind the company and it is ready to move into a new era of profitability. That's what all the interest in this company is all about. For a more detailed discussion of all this read back through about pages 8 to 15 of this thread when we all went round and round on this point.

I just don't share your view that ITE is a high risk investment until such time as it has posted profits year after year. I honestly feel that by waiting until that time you will be missing out on some very healthy SP growth.

But that's fine, everyone's opinions and personal risk comfort levels are different, which is what keeps these discussion sites so interesting.

Good luck to all holders....and to potential future holders!!

Regards, GJC.

wns

13-12-2006, 11:57 AM

quote:Originally posted by absolut-advance

So your saying that the fundamentals of businesses dont change over time and that if a company hasnt been profitable it never will be,

and you can get a prediction of the future by analysing the past price history...

No to the first part of your sentence and yes to the second part.

The fundamentals of a business can change over time and of course its possible for a business to become profitable when it hasn’t been in the past.

However, a company’s track record is like a person’s character and past behaviour gives an indication of what is likely in the future.

I’d rather buy into a company that has a solid track record – runs on the board.

ITE’s share price might sky-rocket, but on a very basic level it doesn’t suit my risk profile.

ohmyme

15-12-2006, 11:38 AM

ITE signs heads of agreement to implement QTC (Queensland Treasury Corporation) on-lending and investment administration requirements using PTX.

Excellent news. Formal contract will be subject to design phase, but it looks like ITE has managed to out-tender everyone else yet again.

The PTX contract with ANZ was worth around $3million bucks, not sure of the scope but I am sure this will be a lucrative contract for ITE. Remember they only ever seem to announce large contracts.

cheers.

tommy

15-12-2006, 02:32 PM

EXCEELLLLEENT news indeed!

http://sa.iguana2.com/cache/861b5f522c46a1061495c85ef7963590/ASX-ITE-267621.pdf

ITE is truly starting to deliver, and there's more in the pipeline. This has become an excellent trading stock (goes up and down like a yoyo!) easy money[:p]

tommy

15-12-2006, 02:52 PM

Read below to get a rough idea of QTC !

Annual report of QTC:
http://www.qtc.qld.gov.au/internet/pub.nsf/AttachmentsByTitle/QTC_AR0506_Full.pdf/$FILE/QTC_AR0506_Full.pdf

Company Profile:
http://www.qtc.qld.gov.au/internet/pub.nsf/Content/Designated_Investments

What is Queensland Treasury Corporation (QTC)?
QTC is a corporation sole incorporated in Queensland, Australia. As the State’s corporate treasury services provider, our role is to implement the operational functions of a corporate treasury for the benefit of our customers and the State. QTC is not prudentially regulated in respect of the Designated Investments accepted by it. Payment of interest, and payment of principal on maturity, is guaranteed by the State of Queensland. QTC’s paid up capital and reserves as at 30 June 2005 were A$277,931,000.

As the State’s corporate treasury services provider, our role is to implement the operational functions of a corporate treasury for the benefit of our customers and the State. In performing this role, our primary responsibilities include:

* providing financial risk management services and advice to the State and its public sector organisations
* sourcing the State’s long-term debt funding requirements in the most cost effective manner, and
* investing the State’s short to medium-term cash surpluses with the aim of maximising returns to Queensland’s public sector bodies within a conservative risk management framework.

We do not formulate Government policy, but work within the policy frameworks developed by Queensland Treasury and the Government.

DEBT FUNDING
In our funding role, we borrow funds in the domestic and international markets in a manner that minimises the State’s and QTC’s liquidity and rollover risk. We then lend these funds to our customers, or use them to manage our customers’ debt or refinance maturing debt.

Through our responsibility for more than 99% of the State’s debt raisings, we are able to capture significant economies of scale and scope in the issuance, management and administration of debt.

These economies, together with our AAA rating (from the State of Queensland’s guarantee of our securities), result in a low cost of debt for Queensland’s public sector. This funding is used to provide tailored financial solutions for our customers.

SHORT- TO MEDIUM-TERM INVESTMENTS
We use our financial markets expertise, developed through our relationships with the domestic and international markets, together with our understanding of debt management and experience in implementing systems, to provide our customers with investment solutions that achieve a high return within a conservative risk environment. Customers have a choice of a managed short-term fund, an overnight facility, or fixed term facilities.

FINANCIAL RISK MANAGEMENT SERVICES
We work closely with our public sector customers, using our combined skills and knowledge, to assist them to manage risk in their financial transactions and achieve the best financial solution for their organisations and the State. In assisting our customers, we do not provide advice that is contrary to the interests of the State.

We encourage our customers and Queensland Treasury, our major stakeholder, to use our organisation as an extension of their resources, by:

* Providing them with access, on a cost-recovery basis, to professional skills and resources to ensure that their financial risks are identified and managed on a consistent basis.
* Acting as a central store of knowledge and expertise on financial structures and transactions, and the risks and benefits that they encompass.
* Providing Queensland Treasury with independent advice on matters of financial and commercial policy and financial and commercial risk relating to the State and its entities.
* Working as a conduit between the Government and the private sector, using our economies of scale and scope to ensure that the best possible solutions are obtained.

Flying Goat

15-12-2006, 05:27 PM

Yep, great news alright. Wonder how London will react...??!! Looking forward to coming home (drunk, of course) from the girlfriends christmas party and checking out trading on AIM tonight...:)

FG

mark100

15-12-2006, 05:33 PM

Mate if I was going to my girlfriends xmas party I'd have higher priorities than checking a share price...

corky

15-12-2006, 05:40 PM

Mark

Maybe the Goat's on a very tight rein (no offence FG).

Corky

Flying Goat

15-12-2006, 05:46 PM

quote:Originally posted by corky

Mark

Maybe the Goat's on a very tight rein (no offence FG).

Corky

No, not really a tight rein, no problems there. Checking the SP is far from the priority, just meant I am keen to see how London will respond to news, that's all. Fair enough though chaps... i did walk right into that one :D

wack

16-12-2006, 07:15 AM

My girlfriend xmas party last night too. Great wine,food and company in Ponsonby, and didn't check AIM latest till morning after :D

Comments in regard to QTC ann

http://www.bobsguide.com/guide/news/16953.html

James Maranis, CEO of IT&e commented: “We are pleased to have the
opportunity to implement PTX into this new segment market. The strategic
importance of this deal will enable IT&e in collaboration with QTC to further
enhance the PTX product line and provide solutions to other vertical markets.
This not only endorses strongly the new architectures behind our products but
makes available a wider target market than originally identified.”

Flying Goat

16-12-2006, 10:50 AM

quote:Originally posted by wack

My girlfriend xmas party last night too. Great wine,food and company in Ponsonby, and didn't check AIM latest till morning after :D

Comments in regard to QTC ann

http://www.bobsguide.com/guide/news/16953.html

James Maranis, CEO of IT&e commented: “We are pleased to have the
opportunity to implement PTX into this new segment market. The strategic
importance of this deal will enable IT&e in collaboration with QTC to further
enhance the PTX product line and provide solutions to other vertical markets.
This not only endorses strongly the new architectures behind our products but
makes available a wider target market than originally identified.”

Yeah, same, same and same. Our party was also Ponsonby, wine was top notch and was way to p1ssed to even turn on the computer last night let alone check the SP!!! Had a look this morning, not too bad, reckon the burst will come in time for Christmas though... :)

FG

tommy

19-12-2006, 04:41 PM

ITE down 6% on small volumes[V] yawn...

Underlord

29-12-2006, 06:57 PM

Looking at trades today for ITE there wre 5 small trades made and they are all what is termed as "crossed Trades" can someone please tell me what that implys and if it means much[?]

Cheers UL:)

WASL

29-12-2006, 07:30 PM

Hi Underlord,

A crossed trade is where the buyer and the seller use the same broker. Note that the buyer cannot also be the seller.

In this case it means very little.

London volumes have been so very small as to have zero influence (so far) on the SP.

Have a great New Year.

Good luck as always

WASL

Underlord

29-12-2006, 07:56 PM

Thanks WASL

Most helpful and all the best for the new year

UL[^]

Underlord

29-12-2006, 08:51 PM

Hi AA

I am in the exact same frame of mind so much so I have been buying more very strong management and niche product for a huge global market, This will be an exciting share for 07 once positive news starts to flow hopefully starting soon with QTC. Somthing in Europe hopefully soon and that will spark AIM listing

Have a great New Year[^][^]
UL

Flying Goat

12-01-2007, 06:39 PM

Hmmm, could this sleepy thing be waking from its slumber? We know the number of shortlists they are on, and the likely timeframe in which they were to have been closed (Dec/Jan), so far just one closure... Hmmm.

Fingers crossed we get something soon, or it might be a long wait...!

FG

WASL

12-01-2007, 08:48 PM

Hi All,

Another piece from "The PUB". Actually a small extract from a Robbo posting on another site.

quote "... I Was contacted by Firm of Share Brokers -from one of major cities; --
approx-- yesterday .... via Phone/email ... and they wanted me top
appraise/analyze and go other some of the salient points about the
intrinsic
value underlying it&e (ITE) ..... with them-as it has piqued their
interest-actually that adjective is slightly understating their
interest,
and likelihood to follow this stock and possibly to....suggest.... to
some.... of their Clients...." unquote

I am also quite hopeful of this stock. I have (for me) a large holding and am thinking of buying more in the quite near future.

Good luck as always

WASL

Lizard

12-01-2007, 10:03 PM

AA, I'd need a bit more convincing that the variable cost component is so low that company costs barely rise when contract numbers double. Plus the delay in recognising revenues may mean some of the profits from the 6-7 new contracts they are targetting for this year will fall into 2008, so may be irrelevant to this years results and therefore current market sentiment.

ITE made it fairly clear in the AIM listing documents that they might not be profitable in the first half. If their profits are going to be dramatically higher than last year, they will need to give more clues at some stage or risk setting off the "continuous disclosure" alarms.

Personally, in an optimistic moment, I'd put them down for $0.5m NPAT in the first half and $4.5m for the FY. That would still be cheap, except that any sort of sensitivity analysis also throws up some much darker potential outcomes. The risk level remains on High and has to be priced accordingly.

Lizard

12-01-2007, 10:16 PM

Should add that the one other clue ITE have given us is their target for product revenue to contribute 60% of revenue in 2007. If services revenue expands further to $10-$11m, then this would mean a total revenue target of $25-$27.5m.

WASL

12-01-2007, 10:25 PM

Hi Lizard,

I totally agree on the risk associated with ITE. It really is "for the brave hearted". My risk software (based solely on previous financials) rates it as "marginal" [ a score of 0.7 - with 0.01 being the super blue chips (not necesariry the BHPs of this world) 0.99 being the absolute disaster]. The newer members, especially the aspiring day-traders, need to be very careful.

However

Good luck as always

WASL

Underlord

13-01-2007, 11:14 AM

Hi all and especially u AA (no not following u around LOL)

Sometimes it is not always about numbers although accountants will tell you otherwise and they do have a large impact on markets ...but sometimes it is about large investors looking and having confidence is a company and its direction, brand and impact

Take FTB on the NZX never made a cent but was brought out by Bacardi for a princely sum, why "market brand" on a world stage

Fund managers in Europe and USA will start to take notice especially when ITE's products are being chosen over the likes of "Sunguard" and "Algorythmics" products both of which are huge high revenue money making mega companys... this alone will drive the market.

I hold and will continue, no risk or worry involved do the numbers any way you like high low don't matter it all stacks up and even for the chart readers out there must say even that looks good.

good luck, and next two weeks will be interesting as announcements should start filtering through

Regards till next time

UL

Lizard

13-01-2007, 01:56 PM

Hi AA,

Valuation has its limits with speculative high growth plays. You have to decide whether you believe the "story" and the ability of the company to grow exponentially in the initial stages. A combination of products, management, market opportunities and old-fashioned luck.

If you believe in the "story" then you will probably intend to hold for years and the share price will be fairly irrelevant, maybe with the use of TA for exits and entries.

If you want a quick check on value, the price/sales ratio might be the simplest. I'd suggest using about 2.5 for a tech company that is producing acceptable margins and showing growth potential. Higher once there is an established history of growth and dividends. (Multiply your revenue estimates by the P/S to make a guess at where market cap might head).

Lizard

13-01-2007, 02:42 PM

Hi AA,

Sorry, don't have alot of time for detailed analysis atm. But we can toss around figures about possible 2007 NPAT and come up with all sorts of things... picking arbitrary figures for costs out of the air is about as bizarre as valuation gets. IF the company thinks they are going to start doing anything like $8m NPAT for FY 2007, they have so far done little to disclose this likelihood to the market. Besides, greater than 20% profit margins is more often a temporary anomaly in a company and doesn't usually follow a near zero margin year. But I'm willing to keep an open mind.

Price/sales is only going to give you a range of possibilities like any other - and yes, it is still a wide range. But it will probably give you a smaller range than using a range of revenues and a range of costs to come up with a range of NPAT's to multiply by a range of P/E's.

Lizard

13-01-2007, 02:54 PM

May have misunderstood your last post. If you want to know what market cap I was suggesting, it was to use (say) $25m revenue for 2007 and multiply by 2.5. Result is market cap of $62.5m.

I didn't spend alot of time "company matching" to find relevant P/S ratios, so if I was as interested as you seem to be, I'd go back and look for companies displaying enough similarity and check their P/S ratios. (Either that or put ALOT more work into modelling ITE's likely cost structure).

keneti

15-01-2007, 12:47 PM

:):):) do we have lift off

tommy

15-01-2007, 04:25 PM

Good volume today, get ready for some price action in da weeks ahead[8D]

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aite&draw.x=0&draw.y=0

Mick100

15-01-2007, 06:02 PM

quote:Originally posted by absolut-advance

hmmm...... I see brokers .... sophisticated smart accumulators are again.... stacking the sell side....trying to create "false resistance" at the psychological 20c mark ...... so that they can .... yep... create a false resistance to yep.. pick up more undervalued shares..
from weak hands...
who simply dont understand IT&E going forward IMO ....

shame... oh well..

Why would anyone sell now??

surely if you held you would understand the company going forward???

guess some shareholder... just dont get it..

Taking a tiny profit.... when they could take .........

If i wasn't already fully set... id still be buying.... but i guess theres a limit to what one can hold without greed and karma setting in right...

Well done IT&E holders IMO this is just the beginning of the beginning of the beginning ....

IMO 19c is still seriously and i mean seriously undervalued when you consider the big picture going forward

but then thats just me....

AA

You really should stay away from the booze AA - your beginning to sound like Robbo.
.

David Hardman

15-01-2007, 06:09 PM

David Hardman

16-01-2007, 04:55 PM

Mr 800k drops his bid back to 16

Not a true buyer in my view.

What do you think AA?

tommy

16-01-2007, 10:16 PM

I was hoping that ITE would break the 20c barrier today but didn't happen [xx(] Don't think we're gonna see ITE beyond 20c until positive announcements are released.

I am still unsure what caused the sudden increase in trade volume since yesterday, any rumors (leaked info)? Would have expected some movement at LSE if it was rumor-driven.

Zephyrus

18-01-2007, 03:10 PM

Just some back of the envelope calcs...

In 2005, sales revenue was 9.9m made up of 6.1m (61%) services & 3.8m (39%) product. Operating expenses were 18.8m; Loss was 11.5m

In 2006, sales revenue was 15.4m made up of 8.5m (55%) services & 6.9m (45%) product. Operating expenses were reduced to 16.3m; Loss was 0.6m

In the AGM presentation, ITE have said they are targeting a sales mix of 40% services & 60% product.

Therefore, if services increase by 30% (they increased by 37% last year) to 11m & that makes up 40% of sales, then product sales will be 16.5m

Further, if operating expenses stay the same at 16.3m (they reduced last year by 16%), then profit (assuming no tax) could be in the region of 11m + 16.5m - 16.3m = 11.2m

This would give a PE of 36/11.2 = 3.2

If ITE did achieve this sort of profit, then I think we could expect a PE of at least around 15-20, therefore a price increase of 4-6 times from where we are now.

Anyone else come up with anything similar?

Am I being too optimistic?

Lizard

18-01-2007, 07:01 PM

quote:Originally posted by Zephyrus
Further, if operating expenses stay the same at 16.3m (they reduced last year by 16%), then profit (assuming no tax) could be in the region of 11m + 16.5m - 16.3m = 11.2m

This assumption that operating expenses stay the same keeps appearing and needs more substantiating before I'd give it any credence. Usually when a company increases revenue it achieves some margin improvements. But it seems highly unusual to have a company that doesn't increase costs at all. I fail to see how you can double new contracts without paying additional staff to market, negotiate and implement them. Gee, even those lawyers that are drawing up the paperwork don't come for free.

Zephyrus

18-01-2007, 07:55 PM

True, but last year they managed to increase revenue by 50% & reduce costs by 16%, so I guess it depends on how much more, if any, they can reduce recurring expenses.

Lizard

18-01-2007, 08:14 PM

Having said that, I do hold some ITE. My targets are just somewhat more subdued.

For now.

tommy

18-01-2007, 10:49 PM

Hi all,

As for forecasting revenue/profit for the fiscal year, I think it is better not to make any assumptions at this stage because ITE has already indicated that they may NOT be profitable in the first half.

I believe the share price will (hopefully!) surge in the event of an announcement of new contracts concluded with tier 1 & 2 banks, etc., but negative first-half results may dampen the sentiment. Therefore, the picture for the full year will become clearer only after the announcement of the first half results, especially because this is the first year in which ITE listed both on ASX and LSE... listing expenses on LSE will have to be recognized as costs in the first half of the year too.

Flying Goat

22-01-2007, 09:38 PM

quote:Originally posted by Zephyrus

Just some back of the envelope calcs...

In 2005, sales revenue was 9.9m made up of 6.1m (61%) services & 3.8m (39%) product. Operating expenses were 18.8m; Loss was 11.5m

In 2006, sales revenue was 15.4m made up of 8.5m (55%) services & 6.9m (45%) product. Operating expenses were reduced to 16.3m; Loss was 0.6m

In the AGM presentation, ITE have said they are targeting a sales mix of 40% services & 60% product.

Therefore, if services increase by 30% (they increased by 37% last year) to 11m & that makes up 40% of sales, then product sales will be 16.5m

Further, if operating expenses stay the same at 16.3m (they reduced last year by 16%), then profit (assuming no tax) could be in the region of 11m + 16.5m - 16.3m = 11.2m

This would give a PE of 36/11.2 = 3.2

If ITE did achieve this sort of profit, then I think we could expect a PE of at least around 15-20, therefore a price increase of 4-6 times from where we are now.

Anyone else come up with anything similar?

Am I being too optimistic?

Hi Zephyrus,

Yes, my personal opinion is that you are being way too optimistic. An NPAT of $11 for 2007 seems, not meaning to be rude, but rather absurd.

There are a few very important things that no one in tis thread seems to want to acknowledge. Yes revenues are growing, but they are spending over $1 for every $1 they earn, this has been going on for many years now and suggests that by the intrinsic nature of their business model it would be highly impossible for them to achieve and NPAT of $11 this year. Yes they have had strong revenue growth and they have many contracts in the pipeline although we have heard very little about them so far. The prospect is certainly there for NPATs of $3, $4 and $5 million over the coming years and I hope that will be the case because i hold in anticipation, but i prefer to factor reality my expectations...

FG

perm

23-01-2007, 12:46 PM

At the AGM it saw stated there should 4 new contracts announced in Dec/Jan..
that leaves us this week to hear anything of these contracts or a guess we sit and wait

km

Underlord

29-01-2007, 10:02 AM

Well 3 more days left till months end I wonder will there be some news this morning. Or will it drag on a while longer[8D]

UL

Flying Goat

29-01-2007, 11:48 AM

quote:Originally posted by absolut-advance

Im hoping its today UL ...but aleast we dont have long to wait now...theres alot of investors watching this closely now ... so the market could really
over-react on announcement....expecting some volatility one way or another...

AA

Yeah, that is an excellent point AA, and very important to keep in mind over the next month or two. If they do not pull anything big out of the bag it will be easy to panic and dump everything at 12 cents, meanwhile six to twelve months down the track they could slowly but steadily be adding contracts and those sellers would certainly be feeling regret. Personally I think that it is worth giving them another twelve months or so to turn in a decent profit, becuase the potential upside is too good to abandon them this early in the turnaround. Anyhow, am glad AA pointed out the factors that will cause this to be volatile in the coming weeks becuase it will remind me not too panic and lose money, when it could be an opportunity to make some!

Cheers
FG

rotweiller

30-01-2007, 02:49 PM

Off and Running.
Broken the 20cent mark and currently 22cents.
Even UK up in price to 6;75.
Unaware of any news to have substantiated the rise - but very happy chappie.[8D][8D]
Cheers

Flying Goat

30-01-2007, 05:05 PM

quote:Originally posted by rotweiller

Off and Running.
Broken the 20cent mark and currently 22cents.
Even UK up in price to 6;75.
Unaware of any news to have substantiated the rise - but very happy chappie.[8D][8D]
Cheers

judging by the volume, price surge and what we know about pending contracts - in the finance and banking industry no less - my guess is that there are folk out there who know something that the market does not... oh how original, pity nobody seems to care that its against the law [V] i would prefer these things were announced to market first, the price would surge just the same but at least we would all be on an even playing field. Anyhow, musn't grumble at least we're making money i guess...

FG

tommy

30-01-2007, 06:12 PM

Hi all,

4 million volume traded today, what is going on with ITE[?] Insider trading? Rumors? Finally the great wall of china just under 20c has disappeared for the time being, so that's good news.

At least we are making (paper) money on this one, but lack of announcements might indeed trigger some nervous sell offs so gotta stay tuned to the screen. (I'm feeling a bit shaky today after missing out on paper profits accumulated over the months following a shocking PBA announcement... damn I hate surprises!)

I think there is a possibility that ITE will make the anticipated announcement based on the trading hours of LSE instead of ASX to lift its profile on AIM. Fingers crossed[:I]

Underlord

30-01-2007, 09:34 PM

Hi guys

Robbo has put aa new post on HC for ITE really opens up a whole different line of thought and well worth a read. I would assume (well I know some are) that most are watching HC but some may not be please do may answer some questions.:D

This is my reply to robbo
Hi Robbo

Have to say you are an absolute artist. You make this all look effortless and have a definate given talent which you share with others very rare in todays world

Checked out Reuters news
http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=386889&source=NEWS

Assume this is what you are alluding to HSBC and they use ITE's Razor. Greg meekings Reuters and Greg Meekings ITE definate link there.

Also check out GBT the other day after you had mentioned and yes ITE would fit rather nicely

Excellent work and I can only aspire

Best Regards

UL

Regards

UL

tommy

30-01-2007, 09:54 PM

" LONDON (AFX) - Reuters said that it has signed a deal with HSBC Group that will give the bank a global licence to use Reuters data and information across the entirety of its business.

The deal will run for the next three years with an option to extend for a further two years, said Reuters.

Financial details were not disclosed."

_________

Hi Underlord,

Err... sorry mate, but can you please fill me out on the significance of the above Reuters announcement? I know HSBC is ITE's client but what is the importance of this release from ITE's point of view?? Puzzled... [:o)]

Thanx in advance!

Underlord

30-01-2007, 10:11 PM

Hi Tommy

Greg Meekings European Director for ITE, and tied up with Reuters not saying that this is absolute direct reasoning. But imo and others a definate line of thought that is worth exploring.

and follows a small extract from Robbo's post on HC (Hope he is OK with this)
look carefully at what ....both .... the CEO .....and secondly.... the Chairman of Gbst (GBT).... said in their ASX released announcements accompanying their Annual General Meeting regarding the type of Financial Services Software Company they are loking to either acquire or merge or a combination of both with.....

-- Then ask yourselves; whethe it&e looks like a good fit; according to this (GBT) description. then see whether the CEO of Gbst mentions Derivatives and Algorythmic Risk Calibration type ideas in this Offfical Announcement to his Gbst (BGT) Shareholders-- in this same annoucement.

For full version Tommy visit HC

Regards
UL

tommy

31-01-2007, 12:21 AM

Hi Underlord and AA,

Underlord, I now have an idea about the possible links you suggested but I must agree with AA that this is all speculation still... I would rather not consider this as a concrete possibility without any announcement from either party at this stage.

That said, I love this kind of "hot air" "rumors" "speculation" about techs, because it drives the share price up[:p] And if it turns out to be true, hey, I would be more than happy:D

But at the same time, I think it is more important to focus on the current actual status of the company and take a level-headed view to determine its true valuation without getting too excited about "if"s and "perhaps"[:I]

P.S. I know GBT... I used to invest in them before their rude IR staff pXXsed me off[V]

Underlord

31-01-2007, 06:18 AM

Hi Tommy and AA

Could not agree more and I would advise people to not buy on speculation as well, only posted to open peoples minds and generate some thought on a differant level nevermind if anouncements come soon we can go back to crunching the numbers again:):)

Cheers

UL

UL

Underlord

31-01-2007, 07:22 AM

Hi again AA and Tommy

Have given these comments some more thought and I think for me its a must when weighing up a buy decision to gather all the hard facts and crunch the numbers then if the decision is made on the absolute facts to buy thats great but just the first step:D.

Personally I like to explore other areas of a stock even if it is speculation. Infact I will "google" the thing to death looking for links and hints of some possible connection to other areas look for links that Directors may have in other areas etc etc. Read other posts look for leads and clues because I enjoy doing so, It gets me thinking outside the square so to speak and apply some multi dimensional thinking:D

Speculation is not to be used as a reason to buy a share[V] but I think it is OK do a little spec after your purchace based on logical fact that is in black and white.:):)

Anyway just my opinion
And here is to another day in the life of ITE

Have a good day guys[8D]

UL

Underlord

31-01-2007, 12:14 PM

Hi Guys

1st announcement out today as in now, lets see how the market reacts today

UL

Underlord

31-01-2007, 01:36 PM

seems to be a reaction to the 4.5-5mill loss for the 1st half year people have tunnel vision don't they. New contracts to come ITE have now talked about in black and white cold hard facts about merger or partnering and other strategic oportunities. Pittsburgh Fedral Home loan Bank ITE will be ratteling compeditor feather now or very soon.

This baby just warming up and now is a great time to buy more:):)

Regards

UL

OneUp

31-01-2007, 02:52 PM

Reading the announcement today IT&e have confirmed that they will make a loss for the half year (and a massive loss it is!) and now comes the revelation that the full year result could also be a loss! From memory they were forecasting an improvement on the $100,000 profit for FY06.

The interpretation of myself and a few others that the December announcement contained a profit warning (buried at the back, after all the warm fuzzies about contract wins and growth potential) was correct.

So in sum profit results are deteriorating but the share price has tripled. Go figure.

Flying Goat

31-01-2007, 05:34 PM

quote:Originally posted by OneUp

Reading the announcement today IT&e have confirmed that they will make a loss for the half year (and a massive loss it is!) and now comes the revelation that the full year result could also be a loss! From memory they were forecasting an improvement on the $100,000 profit for FY06.

The interpretation of myself and a few others that the December announcement contained a profit warning (buried at the back, after all the warm fuzzies about contract wins and growth potential) was correct.

So in sum profit results are deteriorating but the share price has tripled. Go figure.

Yeah, ditto OneUp, i also took more bad than good from that. Every one keeps going on about fundamentals but seem to be foregtting that 5 million bucks is a pretty massive amount of cash to be burning in just six months, no matter how many contracts you might have in the bag...

Costs are not on their way down, i am personally no longer sure about the fundamental business model inherent in this company and question whether one could realistically expect it to become a long term cash cow... given all the fundamental evidence we have seen to date.

FG

Underlord

31-01-2007, 05:39 PM

"FHLBank Pittsburgh is one of twelve FHLBanks nationwide. Congress created this national network of privately owned wholesale banks in 1932 to ensure available funding for mortgages. Today, as the only wholesale source of community-building funds for neighborhood banks, the FHLBanks fill a critical vacuum by providing liquidity for small business, community development, rural and agricultural loans — as well as home mortgage financing."

Maybe ITE will get all FHLB over time 5 mill loss may seem peanuts in another 6mths to a year also check out the board of directors for FHLB and what there current positions are
http://www.fhlb-pgh.com/about-us/our-board-and-management.html

ITE have beaten Sungard and Fitch in there own backyard this is truly global and has the potential to snowball.:D

Regards

UL

tommy

31-01-2007, 05:41 PM

Hi all,

Sold off all my ITE holdings today, had to lock in profits while the going was good:D

I also think the half-year results were worse than expected, and no matter how many contracts they might win, the fact is that they might continue to burn cash for a while. I don't doubt that ITE is in the expansion/growth phase, but at the end of the day they need to turn profitable soon to increase shareholder value.

That said, the merger/partnership deal might fuel more hype in the future, so need to keep an eye on it.

This is a great trading stock that bounces up and down on news... will re-enter on any weakness!

Good luck to holders.

tommy

31-01-2007, 06:43 PM

quote:Originally posted by absolut-advance

Well those announcements were a real mixed bag of lollies some yummy some not so....

mixed thoughts....

AA

Hi AA,

Know what ya mean, if you have an investment timeframe of 24 months ITE might turn out to be all right (anything can happen!) but with 12 months or less, I'm not so sure either.

Looking at the contracts, ITE might become a good takeover target before it even turns into the black, as many unprofitable but growing businesses are acquired before they realize the full potential.

The first company that comes to mind is obviously UXC...wonder whether UXC is considering a merger with ITE?

Lizard

31-01-2007, 06:55 PM

I sold out of the trading account today at 21cps for 50% gain. I still hold the other half in the long term investments pending possible corporate action and contracts. But I was not impressed with today's announcements.

I put the money into ATZ at 13cps - which then turned in a nice quarterly result.:).

tommy

31-01-2007, 07:04 PM

I feel your pain AA, the difficulty of being decisive at moments like this[:o)]

When I am not sure, I normally sell half at profit (just to lock in) and continue holding the remainder (so I also have my foot in the door for further potential gains). Whether it goes up or down, it doesn't really matter that way[:I]

I sold out simply because of my personal rules: If I see "sell on fact" pressure to be greater than expected immediately after an announcement, I normally press the sell button just to get good night sleep. Sometimes I am right, sometimes I am totally wrong.

If ITE can stay above 20c over the next few days, it should maintain its uptrend but if not, it might hover around below 20c again...

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aite&draw.x=0&draw.y=0

No one doubts that ITE can win a few more contracts, and there should be more coming. But whether the management is capable of turning the company around to make it profitable is yet to be seen, judging from past performance. But now, with merger talks in the air, who knows what will happen?

I think whenever trading volume increases, something is brewing at ITE and an announcement is imminent... that seems to be the only definite pattern at ITE[}:)]

Bobbyvee

31-01-2007, 08:54 PM

I am with you Tommy - sold out this morning to lock in profit while watching out for what the future holds. Concerned that the share price may go nowhere for a while.

BobbyVee

WASL

31-01-2007, 10:04 PM

Hi BobbyVee,

Oh yee of little faith.

I would have waited until at least $0.25.

Regards

and

Good luck as always

tommy

01-02-2007, 02:16 AM

http://www.hemscott.com/companies/company-summary.do?companyId=6053

ITE up 13% today on London AIM:
"7.62p Upwards 0.88p (13.04%)"[:0]

Would be interesting to see how ASX reacts tomorrow... will ITE share price performance on AIM help sustain momentum on ASX?

http://asx.netquote.com.au/charts.asp?code=ite&x=0&y=0

tommy

01-02-2007, 05:08 AM

http://www.hemscott.com/news/latest-news/item.do?newsId=38918846351357

IT&e says approached for possible merger; warns of loss for half year

LONDON (AFX) - IT&e Ltd said it has been approached by another company for a possible merger or partnering; it warned that it expects a loss for the half year and said it is not possible to predict whether the full-year results will be profitable.

Given 'certain uncertainties', the company said that it is not possible to state what the loss for the half year will be, but the board has asked the management to complete an unaudited estimate which indicates a loss of 4.5 mln aud to 5 mln aud.

The primary cause of the expected loss is the movement of contract closures and revenues from completed contracts to the third quarter from the second quarter, the technology products firm said.

The announcement came in response to a query by the Australian Stock Exchange regarding its recent share price movement.

IT&e said the approach is in a preliminary stage and it has appointed Origin Capital Group to explore the proposal and other strategic opportunities.

The company also said it has also finalised a license agreement with Federal Home Loan Bank of Pittsburgh for its Razor product.

___________
http://www.finextra.com/fullpr.asp?id=13174
Federal Home Loan Bank of Pittsburgh licenses IT&e risk technology

IT&e (ASX code: 'ITE' AIM: 'ITEL'), a leading provider of financial software and consulting services to the global financial markets, is pleased to announce that the Federal Home Loan Bank of Pittsburgh (FHLBank) has selected IT&e's Razor product as a key component of its Risk Management systems infrastructure.

IT&e and FHLBank Pittsburgh have today signed a license agreement to implement Razor to address the bank's credit risk exposure and limit management requirements across its growing business. The decision to select Razor was made after an extensive evaluation of a number of global vendors. Razor was identified as the best fit for FHLBank's requirements to replace its internally developed application with a best of breed real-time credit exposure system.

J. Michael Hemphill, Chief Risk Officer at FHLBank Pittsburgh commented, 'IT&e offers a unique combination of thought leadership in counterparty exposure measurement and state-of-the-art technology. Our credit policy mandate is constantly evolving, and the increasing complexity of the bank's trading and hedging activity required us to identify a solution that is inherently adaptable and extendible.'

John Groetch, COO of IT&e in North America noted, "we perceived a very good fit when we analyzed the special requirements of the Federal Home Loan Bank. Razor will not only suit their immediate needs, but offers a broad range of capabilities that will foster further advancement in the measurement and management of counterparty risk at FHLBank Pittsburgh"

James Maranis, CEO of IT&e said, "We are pleased to have the opportunity to implement Razor into a prestigious organization such as the FHLBank. This deal marks a major milestone for the company and strongly supports the competitive nature of our Razor product across the globe and in particular the North American Region. We are extremely encouraged on future growth given the demand in the region and in our ability to vie successfully against our major competitors. This represents another significant step for IT&e in converting its substantial international sales pipeline to revenue."

Underlord

01-02-2007, 07:14 AM

Hi Guys

What was everybody’s opinion on the response to the ASX Query yesterday. Could ITE have handled it all differently..imo..you bet they could have.

Three very important snippets of info delivered to the marked a on a share price enquiry

1 New contract
2 Partnership or Merger
3 Loss 4.5-5mill

What if they had just mentioned point 1 the new contract?? the market would have reacted quite differently
What if just points 1 and 2 where mentioned……WOW……

They did not have to nor where they obliged to, at this point of time announce point 3 nor for that matter point 2

But they did why????

Maybe to offset point 3 and go into damage control
Maybe because they are just open and honest with investors and BOM have integrity

And anyway if it were me as far as point 3 goes I would certainly slightly exaggerate the loss (remember this 4.5-5mill is olnly and estimate). Because if in 2-3 weeks time when the official loss comes out I would, if I were ITE, want it to be less than estimated. Wouldn’t you??

The money has not been Lost, it has just been slipped into a different time zone.

The more I digest and the more I think about yesterdays announcements--- THE MORE I LIKE THEM AND THE WAY IN WHICH THEY WERE HANDLED.:D

Good to see that AIM as responded well all be it on low volume and someone tells me that the CEO is over there now. I wonder why??

Roadshow??
Contracts??
Merger or Partnership??. Take your pick

Your thoughts please
Regards

UL

tommy

01-02-2007, 04:13 PM

ITE share price slipping as expected on smaller volumes...

http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Aite&draw.x=0&draw.y=0

But how low will it go? Give me 14c and I'll get back in[}:)] (doubt it will fall that much though)

Will da "great wall of china" at 20c reappear at some point?

tommy

02-02-2007, 05:53 PM

Announcement out! But was only about issue of shares of employee share plan... YAWN.

Share price bounced back above 20c, very encouraging indeed. Might get back in depending on how it closes today (friday).

brisand

04-02-2007, 06:03 PM

which institution whose name begins with C and finishes with L was the large buyer of ITE last week
Clue: The Wild ........Boy

Moonshine

04-02-2007, 06:25 PM

Colonial?

Sorry brisand, I am not registering the significance at this stage, or why you seem to think that it is a bad thing?

robbo

04-02-2007, 06:25 PM

quote:Originally posted by brisand

which institution whose name begins with C and finishes with L was the large buyer of ITE last week
Clue: The Wild ........Boy

Hi Brisand,

great Post...!!

btw..,,,does, 'brisand' mean you live in Brisbane..or I am off track...?

You are a smart little vegemite....and certainly a smart "Conscious Investor"...;):D

....And I believe; as the ballad says.... that.... Jack Doolan... was ....his name...!! ;);)

Great Research Brisand. Many thanks.

Regards,

Robbo:)

robbo

04-02-2007, 06:49 PM

HI Moonshine,

brisand doe not say this ....(that 'Colonial' coming onto the register)-- is a bad thing ...... methinks he is just being ...."Cryptic"...and Yes, Moonshine; your Guess is correct..... so Well Done-- a half Mars Bar(2001 vintage) ...Prizes all round ... to you Moonshine...:)[^]

*** Actually the reverse is true imo-- --Moonshine--it is a GREAT thing-- this is (...as ...one.... of the reasons) ..... WHY the it&e (ITE) shareprice.... is Holding up and rising--coz the Instos are NOW beginning to interpret the VALUE to be had--with it&e (ITE) --- and are consequently ..... now voting with their Cheque Books-- and are coming onto the it&e (ITE) Register....

Kindest regards,

robbo:)

quote:Originally posted by Moonshine

Colonial?

Sorry brisand, I am not registering the significance at this stage, or why you seem to think that it is a bad thing?

robbo

04-02-2007, 06:54 PM

AA,

brisand is saying not that Colonial is a it&e client--like CBA is-- although they too(Colonial )- are also a (ITE) client actually-- -- but INSTEAD-- ...

..... That Colonial Funds Mgers-- are buying (ITE) shares on the Market.--and were the largest buyer.... of (ITE) sahres ....in last weeks trades....on the stock market... (see my previous related post, in response to Monshine)-- to this too)

Robbo.:)
-----------------------------------------------------------------
----------------------------------------------------------------

quote:Originally posted by absolut-advance

The merger between Colonial and the Commonweath Bank is progressing and we would like to welcome all Colonial customers to the Commonwealth Bank Group.

I could be way off here.... but seems everyones in bed with everyone else in this story...

AA

Moonshine

04-02-2007, 07:01 PM

Hi Robbo,

brisand's comments on HC suggest that he/she is not so impressed:

"Been there nad been burnt."

and...

"Been there and , would not consider ever again."

That is why I seem to think that he/she is not too impressed with Colonial buying ITE.

BTW... where can you see who has bought ITE shares over the last week please?

Cheers,

Moonshine

Moonshine

04-02-2007, 07:13 PM

Too true AA... perhaps if I had read a little back a bit I would have realised.

Thanks for picking me up on that.[B)][:o)]

robbo

04-02-2007, 07:14 PM

hi guys,

yep, definte referral by brisand-- to Smart Card operator ERG....many were severely burnt with this firm..... conmand put up a little advert for ERG in the ite thread-- great !!lol-- ERG-- that is.....ERG is bad news--or it least it alwys has been....

re where to find out--who is coming onto register you cant unless you KNOW the right people.(unless they take a minorty postion or they formally-- declare like sometimes Perpetual etc etc.. does)

Rgrds,

Robbo.

-----------------------------------------------------------------

quote:Originally posted by absolut-advance

Moonshine i could be wrong but i think brisand was refering to xcommans question re ERG.... not Colonial

AA

quote:Originally posted by Moonshine

Hi Robbo,

brisand's comments on HC suggest that he/she is not so impressed:

"Been there nad been burnt."

and...

"Been there and , would not consider ever again."

That is why I seem to think that he/she is not too impressed with Colonial buying ITE.

BTW... where can you see who has bought ITE shares over the last week please?

Cheers,

Moonshine

robbo

04-02-2007, 08:16 PM

it&e (ITE)....

btw guys.... meant to mention to those who like to sometimes errrr ..... "intellectualize" ....their share investing-- that it occurred to me; (Brisands recent reminder about Colonial coming onto the (ITE) share register) & Gollums excellent posts too; triggered this thought)--..... that what we are--imo--- now really seeing with it&e (ITE) now-- imo--.... is a classic George Soros-- style exerise in ... . "iteration"....

The few and rare-- but immensely successful--- High Growth Micro or Small caps-- can be construed, among other things-- ,as..... exercises in "iteration".....

What do I mean...?

Well, ....Hypotheses are formed, tested, adapted, re-tested, and the given company's (in this case it&e)-- Inimitable Competitive Advantage is established in THE MIND OF THE MARKET-- , and its ripeness and readiness for the market is internalized, the center of gravity shifts...., the inflection occurs also with cultural memes (read Basil 11 & Sarbanes Oxley and the massive growth in Global Derivative And Hedge Fund Trading) ,and a critical point of inflection is reached to converge-- to create if you like; a "kinetic energy" that grows within itself....

The "ideal small cap" -- and Mega Growth business ... then rides the wave.....

And this occurs ... and is imo where the actual Product and suite of Whole Unique Knowledge Capital Solutions-- offers Exceptional Superior Inimitable (un-copiable --cannot be easily copied) ....true Intrinsic real Value to the Most Important "critical mass" of Larger Customers ....ie: Those Customers who who have got the greatest ability to pay--and keep on willingly paying ....thus creating a "Wide economic MOAT "--and a 'franchisable Toll Booth style' repeat scalable business that grows and grows-- -- for that rare but successful new globally competitive dynamic Enterprise -that is fortunate to Operate-- in Big Demand Global markets. -

The more you assess and think about it; it is all there....imo--for it&e...

Kindest Regards,

Robbo.

rotweiller

04-02-2007, 08:32 PM

Could someone please explain "HC" and how a newbie like me can find it ???
Not a bad score from the Black Caps to keep you Ockers honest.
Cheers

brisand

05-02-2007, 12:27 AM

quote:Originally posted by Moonshine

Colonial?

Sorry brisand, I am not registering the significance at this stage, or why you seem to think that it is a bad thing?

Who said it was a bad thing ????????????

brisand

05-02-2007, 12:31 AM

quote:Originally posted by Moonshine

Hi Robbo,

brisand's comments on HC suggest that he/she is not so impressed:

"Been there nad been burnt."

and...

"Been there and , would not consider ever again."

That is why I seem to think that he/she is not too impressed with Colonial buying ITE.

BTW... where can you see who has bought ITE shares over the last week please?

Cheers,

Moonshine

Moonshine I was referring to the question raised about ERG.

Moonshine

05-02-2007, 01:19 AM

yep, sorry bout that brisand... my mistake.

miner

05-02-2007, 10:09 AM

Interesting how you read depth AA,that is what I used to do when I played shares,what I used to look for was(just using numbers) lots of sellers or buyers at say 10c to make a total of say 200k rather than say 2 at 100k each,so the real depth is the number of sellers or buyers at a certain level rather than the number of shares on offer.

In saying the above though remember there is always the exception to the rule.

Cheers
Miner

Underlord

05-02-2007, 01:12 PM

Hi Guys
Good volume for first hour of trading today, sell side thinning at 21.5 heading back to previous high.....great stuff:):)

Been bush for the last few days great to see you back Robbo.

Every body has been active over the weekend so have alot of catching up to do:D

Regards
UL

robbo

05-02-2007, 02:29 PM

it&e (ITE).

Hi guys

Have been calibrating the pemutationsand combinations--doing a "Decison Tree" and Probability Analysis--

And can rationally now say this....

As the days count down --for More major Blue Chip Bank Clients out of the USA and Europe-- the probability curve increases markedly in favour-- of 30 cents by THIS-- Friday

-And will say something controversial-- will be 45 cents by the end of This month (Feb) or at latest-- end of first week of March-- 2007.

-Before here on S/Trader--others have asked me; about what 'techniques' and "memes" and synthesis/interpretation of various global inflection points; that I use to uncover & find and identify-- "xyz stocks" etc etc etc...???

Well here NOW -- imo, is a wonderful Case Study --now with it&e (ITE) that is in fact, imo-- forming before our eyes--as I perceive and assess it now.....

So, in light of this; If you all do not mind... I will repeat what I said 2 posts or so ago-- read it carefully & slowly--coz there is imo..... a HUGE 101 "Classic Case" ....imo ....forming here... as I described before... so to repeat....again...

Well, ....Robbo's/Pub's Hypotheses are/is slowly but surely formed, tested, adapted, re-tested, and the given company's (in this case it&e)-- Inimitable Competitive Advantage is then hopefully going to conform to this viewpoint later on-- ie: become established in THE MIND OF THE MARKET-- , and its true Value re its ripeness and readiness for the market is internalized, the center of gravity shifts...., the inflection occurs also with cultural memes (read Basil 11 & Sarbanes Oxley and the massive growth in Global Derivative And Hedge Fund Trading) ,and a critical point of inflection is reached to converge-- to create if you like; a "kinetic energy" that grows within itself....

The "ideal small cap" -- and Mega Growth business ... then rides the wave.....

And this occurs ... and is ....imo.... where the actual Product ....and suite of Whole Unique Knowledge Capital Solutions-- offers Exceptional Superior Inimitable (un-copiable --cannot be easily copied) ....true Intrinsic real Value to the Most Important "critical mass" of Larger Customers ....ie: Those Customers who who have got the greatest ability to pay--and keep on willingly paying ....thus creating a "Wide economic MOAT "--and a 'franchisable Toll Booth style' repeat scalable business that grows and grows-- -- for that rare but successful new globally competitive dynamic Enterprise -that is fortunate to Operate-- in Big Demand Global markets. -

The more you assess and think about it; it is all there....imo--for it&e (ITE) ......:)

Kindest Regards,

Robbo.:)

Kindest Regards,

Robbo

tommy

05-02-2007, 06:40 PM

Wow, what a take off:D

Got back in today to ITE but I'm having BIG PROBLEM at the moment which is totally unrelated... someone stole my credit card details on the internet and I got billed 5K from a dodgy internet company! The transaction took place three months ago but I didn't notice it (damn, I should check my statement more often without relying on direct debit [xx(] and the money has already been taken out of my account... not happy. Could have used that extra 5K to buy more ITE!

Canceled my card straight away and am trying to get my money back from overseas...total hassle! It's my first experience of internet identity theft, and could have done without it.

Lesson: Be very careful when you use credit card on the internet!! (I thought I had been but obviously not enough, considering that some servers are configured to store personal info)

Flying Goat

05-02-2007, 09:19 PM

Hmmm, interesting activity today... smells like another contract announcement to me... man thus comany leaks like a sieve[}:)]

tommy

05-02-2007, 10:15 PM

Thanx AA for your advice, looks like I'm gonna get my money back after all, turned out to be someone in Dominica playing with my credit card after tracing the thief's IP address:( Apparently the bastard was downloading 5k worth of x-rated stuff on the net using my details... what da?[:0] That is a lot of stuff... and you'd think they'd try to buy something more worthwile than consumable items like pXXn!? but I suppose they can't put their home address for deliveries...

Now back to ITE, yes it might be another announcement on its way, whatever it is the increasing trading volume was good as expected based on Friday's activities. If ITE can find support above 20c, it will be even more encouraging, but I'm not assuming anything because this stock seems to go up and down like a yo-yo.

Looking forward to another interesting day tomorrow:)

ONTHENOSE

05-02-2007, 10:59 PM

Good to see the AIM is folllowing the ASX... AT an all time high...

trading at
8.000 +0.38 +4.92%

:):D[8D][:p]

Footsie

05-02-2007, 11:16 PM

brisand

HC is hotcopper........ an aussie chat site, but a bit more brutal than here

ppl who dont agree with your view will tear stips off u !

www.hotcopper.com.au

robbo

06-02-2007, 11:58 AM

it&e///

it&e (ITE)

HI Tommy

Geeee,

$5000 worth of: Por%^0) XXX stuff.....

Tommy; that is what I call very Keen !!!

You'd-- think he might get ---Repetitive Strain Injury or....;)[:0] Tennis Elbow ....[8D];) ....

..... Anyways, ....better go; can hear the Fed Ex truck outside now at the door ...--.....with a big Suprise Parcel -- from somewhere exotic overseas-- wrapped in discrete Brown Paper....wonder what it is....??....[?][?]:D---

Regards,

Robbo :)

quote:Originally posted by tommy

Thanx AA for your advice, looks like I'm gonna get my money back after all, turned out to be someone in Dominica playing with my credit card after tracing the thief's IP address:( Apparently the bastard was downloading 5k worth of x-rated stuff on the net using my details... what da?[:0] That is a lot of stuff... and you'd think they'd try to buy something more worthwile than consumable items like pXXn!? but I suppose they can't put their home address for deliveries...

Now back to ITE, yes it might be another announcement on its way, whatever it is the increasing trading volume was good as expected based on Friday's activities. If ITE can find support above 20c, it will be even more encouraging, but I'm not assuming anything because this stock seems to go up and down like a yo-yo.

Looking forward to another interesting day tomorrow:)

tommy

06-02-2007, 05:11 PM

quote:Originally posted by davidrob

You'd-- think he might get ---Repetitive Strain Injury or....;)[:0] Tennis Elbow ....[8D];) ....

Hi Robbo,

HAHAHAHAHAHA:D:D:D:D

That's gotta be the funniest post of the month, never thought about getting a "tennis elbow" that way!!! Hope you enjoy the contents of that big brown paper bag mate on my behalf... hehehe

Well, ITE down 6% today, filling the gap now to consolidate...
http://asx.netquote.com.au/charts.asp?code=ite&x=0&y=0

Will it be able to find support above 20c to maintain the uptrend or will it continue to face the Great Wall of China at 20c again?

I was hoping for an announcement due to yesterday's trading volume spike but haven't seen it happen yet... yawn. Topped up more today but would like to pick up more at 17c[}:)]

robbo

07-02-2007, 01:15 PM

it&e

Beenup all night with Tommy's parce....

And now I need a double dose of Panadol ....for my sore right wrist--....;)[:0]

imo ....it is a case ...--with (ITE) now--of:-- "Patience Pays".

1 to 2 weeks max--imo-

Robbo.:)

Underlord

08-02-2007, 07:03 PM

quote:Has anyone here noticed the pattern ..

Strong buying big volume Monday Tuesday...then it goes slack wednesday thursday friday...

Ran hard...Attempted 23c hit resistance failed...appears to be returning to its 30 day moving average to consolidate for another go...

most likely monday....? hopefully coupled with another contract announcement...

good cheap buying at the moment...

AA

Hi AA, Robbo and Others

Yes maybe traders having a play[V] not sure. I think it will hoover now around 18-20 until news starts flowing. Brought another 15k today at 19:D got the better of me[^][8D] .......Just a waiting game now imo which I sometimes find very frustrating especially when I know its so close to lift off.

Regards

UL

Underlord

08-02-2007, 08:58 PM

Hi AA ...yep know what you mean but in another week or two you'll be swinging of the rafters and I'll be beside ya:):):)

UL

tommy

08-02-2007, 09:13 PM

Hi all,

I think ITE is still a TRADING Stock rather than an INVESTING stock... goes up an down violently from day to day and I think this will continue until it can continuously post positive earnings (go into the black).

The fairly large half-year loss was undoubtedly a damper to the latest announcement (though the contract news minimized a potential nosedive).

I think the tug of war will continue for a while, until more major contract announcements are released to further clarify the progress being made by ITE towards future revenue growth. Earnings growth is yet to be seen and is the biggest challenge for the management at this stage...

We badly need an update on how many contracts were won by ITE in the Dec/Jan period!!

robbo

08-02-2007, 11:08 PM

it&e (ITE)

Couple of points here guys,....

Tommy you know I love ya, so do not take this personally--but it&e like any stock can be a trading Stock-- but is not a trading stock as such for me... I do not Trade--I only Invest.....

(2) Now to Guys like UnderLord & AA---as your friend-- you worry me at present; about the tone of your posts and what you say; about .....waiting ....and wondering.....

So anyway, I am going to "talk tough"-- with you ....coz ...I care.... Take it or leave it....

What; .... Really worries me ....is-- how much you guys seem to ....."Watch the Depth" and watch the "ticker".....

Guys; you will psychologically "screw your head in here" ....doing that..... imo.....

(3) In my post on:-- "While I was away"-- -- I wrote a note about dealing with the whole concept of 'Time' thingo.....okay can I tell you; thqt this issue is one of the Biggggest issues to wrap both you Brain, ......and your balls around .......

Idea: Imagine that it&e is 35 cents ibn 30 days time and that ite (ITE) is say 20 cents today.

So the difference is what???

15 cents right???

Okay--say you have for example only 200, 000 shares-- [[plug in here how many shares YOU own]]]]....

Okay 15 cents time 200, 000 shares = $30, 000. Do you agree.

Now bring that back to weekly amount by dividing that by 4.3....

It is roughly $7000 a week....am I right.....?

Now how much ....were you earning..... in your last job....?

------------------------------------------------------------------

Lets go .....with another ..... mathematical calibration........

AA-- you reckon that at 18 cents for (ITE) you are 'only' around 20% up ...?

--So you average "in price" for (ITE) is 15 cents approx...? Is that about right....?

What month did you enter... would that have been at about Octoer...?

-Okay, at a guesss you have more than 200, 000 shares.

I do not know how many you have...??[?][?]??? >

But let us say it is 400, 000 shares.....

so at 15 cents You paid.... $60K approx...?

Okay-- what do you calibrate they are worth...?

Here is the robbo answer.....

At the least 75 cents, and probably $1.50-$2.00/

Let me take the lower number.

What does that equal....?

$300K is what it it is worth....

But let me say you have to sell some on the way through... Say you have only 300, 000 times .75 cents.... what is that worth...?

Do this last sum for me.... and I will show you how to "hypoithetically" but imo realisitically multiply Donald Ducks money in shares...."

---------------------------------------------------------------

Time can either be your very Biggest enemy--or your dearewst friend...it is how you comne to terms with it and handle it and conceptualize t it.

I cannot stress and repeat-- this enough--espceially for folk who are used to getting a weekly, fornightly or monthly pay cheque.....

And this issue runs on multi levels and in multi-domensions....

AA. ; you said that it&e has only gone up 20% since October....

Okay; what would you feel...... if it had gone down 35%..... since October....???

ie: It does not matter...

Even if you are slicing off chunks of your it&e to actually live off--it does not matter... ....

Do you 'get" what I am trying to say... ???even if you are slicing chunks off you ite account to live off--ir DOES not matter... but your emotions may tell you it does matter.

Actually .....it does ....not..... matter......!!!

Are you..... 'reading me'----- here guys....???

If you can learn and intrnalize this issue-- you will increase you annualized earnings in shares --as a full time living-- by 200% +++ imo....

Tell me if you are "hearing"-- any of this...???

Also do you understand the problemo with your current language of perceiving "TIME"-- paradigm...? YOu are NOT NOT NOT optimizing your opportunity thinking like this imo guys.

I say this, imo, only-- only as your friend and not just...... as a smart ar&*^se....

Regards,

Robbo:)

WASL

09-02-2007, 12:37 AM

Has anyone actually asked the guys/gals at IT&E about the status of up-and-coming contract? There must be some (loose) gossip around the market. Someone must know someone who knows someone. Get the feelers out guys/gals! We all know most companies leak like sieves.

I'm hanging in there with a (for me) large holding; but I do not enjoy the massive paper changes on small share price changes.

Regards to all, and

Good luck as always

WASL

ps nice to see you back Robbo

Underlord

09-02-2007, 06:24 AM

Hi Robbo

Point Taken:)Human nature I guess watching waiting a hunter gatherer type thing, very hard to suppress

UL

Rainesy

10-02-2007, 01:09 AM

Sad to see ITE drop under the 20 cent mark, maybe a good chance to top up for the 4th time. :D

Rainesy

tommy

10-02-2007, 05:11 AM

Hi robbo, AA and gang,

Yo Robbo, great post as always mate, of course not offense taken[:I] You know I RESPECT you mate, don't you?!!!! hehehe

I know you are a full-fledged investor, not a trader... and at the end of the day I happen to be both an investor and trader at the same time, depending on the stock... that's why I also keep an eye on the charts to make a quick buck when I have some cash sitting in my bank account! Don't like having more than 50k lying idle earning some crappy 6%p.a. on online savings account, if you know what I mean...

I treat ITE as a trading stock simply because of its volatility and the fact that it has NOT YET entered the earnings (i.e. profit) growth phase. It seems to be right on track for the revenue (i.e. sales) growth trajectory, but what I am talking about is net income after tax.

Don't misinterpret me, I do love ITE but it's just that I still have no confidence in INVESTING in this stock (i.e. timeframe of more than 12 months) because at the end of the day, I never assume a long term position on techs (even ADA and ASZ are mid-term for me... only long-term holding I have is RFG and SAI!! DES is definitely short run. Damn, I should have never sold TRS after a couple of bags[xx(]) I remember us disagreeing massively over ENG back in the day, but hey, we all have different risk profiles and timeframes! And you are the MASTER of long-term investment... max respect!!!!

There is one thing that you have to bear in mind about Basel II though... currently, financial supervisory authorities in many developed countries are preparing guidelines and manuals to make sure financial institutions comply with Basel II and are making legislative fine-tuning efforts to minimize confusion.

What does this mean?

It means that we are STILL IN A STATE OF FLUX AS FAR AS REGULATORY ENFORCEMENT IS CONCERNED! Thus, what ITE is offering "MIGHT" (though highly likely!!) be the key to compliance/adaptation to Basel II, but whether or not it IS the killer solution is yet to be seen (aah man, I am such a downramper aren't I... must be all the beer I had tonight)

Some people seem to think that Razor is a proven Basel II killer solution but let's not all get carried away here because that may not necessarily be the case.

Basel II encompasses other aspects of standardization aimed at bringing about financial sector stability. (As for the validity and effectiveness of Basel II's approach, I have already stated my point of view so please read my earlier posts on this thread.)

Let's do a recap now.

Pillar 1 relates to the minimum capital requirement, requiring increased sophistication of the calculation of a financial institution's capital adequacy ratio. PLUS, operational risks must now be incorporated when calculation of capital adequacy ratio in addition to credit and market risks. (This is da controversial bit! What da XXXX is the scope of operational risk?!)

Pillar 2 relates to self-supervision and supervisory review process. Financial institutions must make sure they know the risks they are exposed and manage them, including those not addressed by the first pillar.

Pillar 3 relates to market discipline: its effectiveness must be boosted through disclosure.

So, this shows that ITE offers a specialized solution to a certain area through Razor, which addresses credit risk management. Razor appears to be a great niche solution as far as credit risk management is concerned.

But what about ITE's ability to address other risks? If credit risk management alone is paramount, Razor might, according to the past success rate in winning new clients, become THE standard. However, financial institutions are looking for a comprehensive solution that can help comply with Basel II in all aspects...

Why did Windows and Office become the de-facto standard? Because it succeeded in addressing most business needs comprehensively (maximum common denominator!)

Raxor at this stage is still a specialized/niche solution that only deals with one area: credit risk. It is

Underlord

10-02-2007, 11:25 AM

Hi Guys

May be prudent at this time to refresh minds as to some of the contracts and negotions that ITE have in the pipeline, this is an extract from the AIM Appendix on the 06/12 and the information was released in October 2006 , we are now another 4 months down the track and imo there will be even more in the pipeline.:)

Tommy…..I can’t really comment on Basel 11 as I have no knowledge in that field but the banks are the customers and they seem to be happy what it is they are buying. The Pittsburgh deal clinched that for me as ITE won that contract in a very internationally competitive market right on the bigboys doorstep so to speak. .. . .................................................. ............................

3. CURRENT TRADING AND PROSPECTS
As announced to the ASX on 20 October 2006, IT&e continues to see expanding new business
opportunities for the Company and its products across all its markets in the European, American and
Australia/Pacific regions. The prospects for growth remain positive.

In Europe the Group is currently short listed in the RFP processes at a total of three Tier One and TierTwo European based banks for the Company’s flagship Razor Risk Management product line. In addition the Company is bidding for mandates with a further five banks throughout the region, for which those banks have identified commercial requirements for application of technologies provided by IT&e across the Company’s current risk and trading product sets.

In the USA, IT&e’s American team is currently short listed in the RFP processes at a Tier One
Canadian bank and two significant US domiciled financial institutions for the Company’s Razor Risk Management product line. In addition the team is bidding for mandates with a further three
organisations throughout the region, for which those banks have identified commercial requirements for application of technologies provided by IT&e across the Company’s current risk and trading product sets.

In Australia, IT&e’s Australian team has contracted for the first sale and delivery of the upgraded
Monarque application to a Tier One Asian Bank; is at preferred vendor stage with a Tier Two
Australian institution for the sale and installation of Razor; is at preferred vendor stage with a further Tier Two Australian institution for the sale and installation of PTX; and is bidding for mandates with a further three organisations throughout the region, for which those banks and financial institutions have identified commercial requirements for application of technologies provided by IT&e across the Company’s current risk and trading product sets.
IT&e is also progressing with the expansion of its services capabilities. On 8 November 2006 IT&e signed an agreement to acquire the client business and resources of Halcyon Information Systems Pty Ltd (“Halcyon”), an established Melbourne based provider of risk management and financial markets consulting services. The benefits that are expected to be delivered from this transaction include: the merging of services activities, further revenue and profit lines and the addition of management and sales resource to IT&e.

Also in the above mentioned announcement, made to the ASX on 20 October 2006, the Directors
made the following statement. “The Board is confident of delivering increased profitability for the full financial year as previously announced. For the half year to 31 December, the Company may not be operationally profitable given the long sales cycle being experienced, business development costs associated with the new opportunities, and the operation of guidelines and internal policies concerning revenue recognition.” The previous announcement referred to above is that made to the ASX on 30 August 2006.

The Company would like to further clarify that the uncertainties in predicting the timing of contract closures, recognition of profits and the timing of associated cashflow streams should be borne in mind in considering the possible impact of future opportunities. Consequently and notwithstanding the inc

robbo

11-02-2007, 04:54 PM

It&e. (ITE)....

Hi Everyone,

Been assessing and thinking, re. (ITE)- about:

" ....Proof, Proof, more Proof & ..... ‘Tipping Points’...."

Been thinking, that with many micro caps—like it&e....(ITE) ...and other potentially high growth micro cap stocks-- it is really simply a case of, various sub sets of investors, requiring various levels and depths of empirical proof—in which to assess and value the forward likely earnings....discounted for risk..... of the firm....

At present.... the “proof” ....as for ITE providing the Banks with a Sustainable Competitive Advantage Value adding solution-- and becoming a “franchise” –as accepted by the “market”-- for it&e (ITE).... to be able to provide leading edge Risk Management Software –through..... Monarque, PTX, and Razor—is as follows;

..... as adjudged.... to various degrees, ....by the following it&e (ITE) clients:

(1) HSBC Bank
(2) KBC Bank
(3) Timbercorp
(4) LLBW Bank
(5) Bear Sterns
(6) Fortis Bank
(7) Commonwealth Bank of Australia (CBA)
(8) National Australia Bank (NAB)
(9) Westpac Bank.
(10). Tier One Asian Bank. (Application disclosed—‘Monarque’—but name of bank, undisclosed, presumably for confidentiality reasons.)
(11). Bankers Trust
(12) Macquarie Bank.
(13). Qld Treasury Department.
(14). Suncorp Bank
(15). Zivnostekska
(16). Brown Bros Harriman Bank
(17) Penison France
(18) Post Bank
(19) Australian Stock Exchange (ASX)
(20) ANZ Bank (ANZ)
(21). Chicago Mercantile Exchange.
(23) Danske Bank . (Germany).
(24) Federal Home Loans Bank of Pittsburgh.

And as of: either 20/10/06 and /or... 29/11/06... the following was the Sales Pipeline and Merger & Partnership Commercial Developments, and ....what was described by it&e (ITE)-- as:-- “Other Strategic Opportunities”-- status.... as per the numbered list, set out, chronologically below:

(25) (i) Selected but pending, contractual finalizations & “test run of software ” status with Bank or other (European / USA).... Financial Institution.

(26) (ii) Selected but pending, contractual finalizations & “test run of software ” status with Bank or other (European / USA).... Financial Institution.

(27) (iii) Selected but pending, contractual finalizations & “test run of software ” status with Bank or other (European / USA).... Financial Institution.

(28). .... and.... A further ....five ...(5) .....Qualified Bank or Financial Institutional Contractual Opportunities ... “over and above”... the ‘above counted’-- further three in contract negotiations...—equaling 8 more on the it&e (ITE) sales short list, ....plus + .....whatever has been added to the (ITE) Sales pipe-line in December, January and early February.... before this sales pipeline was made public, on 29/11/06.

(29). Publicly announced ... That it&e (ITE) have been approached regarding: -- .... “Partnering and/or merger opportunities” with another entity—which it&e(ITE)-- is being advised by the Origin Group....

(30). In addition to this.... 'approach'.... as per: point- (29) above-- -- it&e (ITE) is considering also: ... >>-- “Other Strategic Opportunities” also with Origin Group advising—that, are now becoming available ....to the it&e (ITE) group. .....

Above.... is ---on one reading-- "the current status", as of 29/11/06... and 30/1/07—regarding most ....of the known (ITE) contracts and progress status....

As I said before; that with micro-caps--- there is, imo, a situation where you have, or can develop.... a series of.... iterations and a...... 'evolving hypothesis' ....based on ....certain levels of: Proof, Proof, and more Proof & ..... until the proof reaches a:-- ‘Tipping Point’.... and the greater weight of potential it&e (ITE) Larger Buyers and Share Holders-- comes into to form a consensus—one way or the other — about the veracity and liklihood ..... of that Hypothesis becoming accepting prevailing wisdom....

-To illustrate:--

.... Imagine a basic simple Weighing Scale ....–like a children’s see-saw...-- at

tommy

28-02-2007, 05:01 PM

Where da half-year reports?? Have they forgotten?????

Flying Goat

28-02-2007, 05:27 PM

quote:Originally posted by tommy

Where da half-year reports?? Have they forgotten?????

Don't they need to be in by close of business today??

Maybe they want to announce to AIM first given that AIM reacted better than ASX to last developments announced??? Don't know how hard it could be to prepare a balance sheet and a profit and loss for a software company with a limited number of projects. Perhaps they want to get confirmation of another deal done and bundle the news so the market wont react so badly to the large operating loss they are about to report?

Hey Tommy, what are your thoughts on the markets after todays little bit of drama, do you think we are headed for a fully fledged crash or was a just a ripple, like a butterfly flapping its wings in China....

FG

:)

Flying Goat

28-02-2007, 05:33 PM

STOP PRESS NOTICE JUST RECIEVED!!!!

tommy

28-02-2007, 05:49 PM

IT&e Posts Interim Results for 6 months to 31 December 2006
IT&e Limited (ASX Code: ITE, AIM: ITEL) today released the Company’s interim results for the half year to 31 December 2006.

David Bell, Chairman of IT&e, comments:
“During the period, the Consolidated Entity incurred a loss of $ 4,685,707 (before taxes and share based payments) [GBP 1,888,808]. The primary cause of the trading loss was the movement of closure of contracts, and revenues from completed contracts, from the first half of the Financial year 2006/07 to the second half.

At last year’s Annual General Meeting, the Company stated that it was targeting to complete seven new deals during this financial year. Although progress to date has been slower than anticipated, progress
continues. Two deals (Queensland Treasury Corporation and a Tier 1 Asian Bank) closed before the end of the half year period.

Since 31 December 2006, the Company has closed a deal with Federal Home Loan Bank of Pittsburgh and four of the remaining deals have progressed to either final “proof of concept” stage or
commencement of contract negotiation. The Company anticipates closing these deals in the next few months and recognising revenue from each in the second half of this financial year.

Further strong interest from a number of Global banks has been received in recent months, in particular for the Razor product.

While the Board is disappointed with the loss incurred for the half year, which has resulted from the extended time taken to close contracts, the fact that some expected contracts have closed and additional material contracts are now in negotiation (albeit later than anticipated) gives the Board confidence that the Company’s product and service offerings remain competitive on a global basis.”

Rights Issue
Given the lag in revenue performance of the Company over the period, and the resulting interim loss for the first half of the 2007 year, the Board has taken the prudent step of resolving to undertake a Rights Issue to raise a maximum of $2.4 million [GBP 1.0 million), which will be underwritten to $2.05 million [GBP 0.83 million], to be used as further working capital for IT&e. An underwriting agreement has been entered into with UXC Limited, a substantial shareholder of the Company. The underwriting agreement contains a loan facility whereby IT&e is able to draw down on an advance of up to $1.2m of the rights proceeds at 12% interest per annum until completion of the rights issue.

Business Highlights
Executive Management have continued the stated strategy of developing sales revenues of the Company by opening and developing new markets across the globe. Highlights during the period include:
- Delivery and sign off of the NAB PTX implementation in Melbourne;
- Selection of PTX as preferred product to Queensland Treasury Corporation (“QTC”) (revenue to be recognised in the second half of the financial year);
- Selection of Razor as preferred product by a tier 2 Australian institution;
- Selection of PTX for proof of concept evaluation by a tier 1 Australian Bank;
- Completion of the acquisition of the Halcyon business;
- Completion of admission to the AIM market of the London Stock Exchange and associated placement;
- Completion of the TMS earn-out; and
- Product sales pipeline development in each region continues to grow and includes active Request

For Information (RFI’s) and Request For Proposal (RFP’s) across all regions.
Since 31 December 2006, the Company has:
- Secured a contract with Federal Home Loan Bank of Pittsburgh for its Razor product (revenue to be recognised in the second half of the financial year); and
- Secured a proof of concept status for Razor with a tier 1 global bank.

Business Outlook
Strong interest continues to build from a number of global banks in particular with the Company’s Razor product in recent months and management continue to focus on quality sales and earnings across all the regions which the Board expect to result in a positive outcome over the coming periods.

IT&e w