IKE - Ike GPS.com

[Harvey Specter]

ikeGPS have announced their intention to IPO:

http://www.nbr.co.nz/article/tech-company-ikegps-signals-ipo-db-157492

Looks promising - small capital raise. Founders take some money of the table so they should have a decent lockup on the rest. NO details on revenue, profit or growth though.

Website: http://www.ikegps.com/

[Carpenterjoe]

ikeGPS have announced their intention to IPO:

http://www.nbr.co.nz/article/tech-company-ikegps-signals-ipo-db-157492

Looks promising - small capital raise. Founders take some money of the table so they should have a decent lockup on the rest. NO details on revenue, profit or growth though.


Thanks HS

I'm pretty sure this technology has been around for years, but linking it to data collection could be a simple way to commercialise it.

Any idea who their competition is?

The spike addition to the smart phone is pretty cool, but again I'm not sure who would want to use it.

Need to do some research into this one. Its hasn't got me really excited yet.

[Harvey Specter]

I'm pretty sure this technology has been around for years, but linking it to data collection could be a simple way to commercialise it.

Any idea who their competition is?

The spike addition to the smart phone is pretty cool, but again I'm not sure who would want to use it.

Need to do some research into this one. Its hasn't got me really excited yet.My understanding is they have an expensive hardware option (like $10k+) which is used by utilities etc: http://www.ikegps.com/industries/

SHould drive huge efficencies for any company with a GIS system (ie. need to know exact locations of assets): http://www.ikegps.com/why-ike/

Spike was a kickstarter project and the development was probably completely prefunded via presales. A great low risk strategy in my opinion and whilc a product line in its own right, may lead to future upsales to the commercial module.

[Harvey Specter]

ikeGPS Group Ltd completed a $25 million institutional & broker bookbuild at $1.10/share yesterday and expects to launch its initial public offering on Tuesday 1 July. The company intends to register a prospectus next Monday. There will be no public pool.
It’s also decided not to proceed with the sale of up to $6 million of existing shares. Chairman Rick Christie said: “The board has resolved that the offer will comprise an offer of new shares only and will not include the sale of any existing shares. All existing shares in the company will be subject to the escrow arrangements that will be detailed in the investment statement & prospectus.”
ike provides solutions for the remote measuring & modelling of objects using a combination of measurement software, cameras, lasers, computing, GPS & 3D-compasses. It has over 200 electric utility & engineering customers and has recently agreed a trademark licence agreement with General Electric. In addition, its new mobile solution, Spike, brings the power of this technology to a smartphone or tablet platform.
Chief executive Glenn Milnes said the company would use its new capital to accelerate its growth, particularly in the US.
Forsyth Barr & Deutsche Craigs have been appointed joint lead managers & joint organising participants to the offer.
Attribution: Company release
Interesting they didn't sell the $6m of existing shares. Suggests the bookbuild wasn't that strong? Or was it really strong that they have decided to get a better price post IPO?

[winner69]

Smokin - I take it that your recommendation is stay away from this.

[Billy Boy]

The concept is not new. Military's around the world have been using the likes for years now. (known as Range Finders). I believe older models can be bought on the open market now. Cant find, but I think there are two other Coy's with similar products available now.
Cheers BB
PS. However I will be watching

[RTM]

69....that is the best post I have seen.
Back to bed with you !

[bull....]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11285531

brent sheather about IPO's

[sharp]

http://structure.io/

Why I am staying clear of IkeGPS.

[tosspot]

So these people are listing today, haven't paid much attention to this. Seems like there a little bit late to the party in terms of listings. highlighted by Gentrack, hirepool etc

anyone onboard

[Harvey Specter]

Ouch!

Down 10c and next bid is a further 10c down. Only three trades so far. Hope no one tried to stag.

[Harvey Specter]

anyone onboardNot me. My concern is they appear to be trying to buy market share but (I dont think) they get recurring revenue so all they are doing is subsidizing purchases. By the time those purchasers come back for another purchase, new competitors may have released a similar/better product - we might even be able to do it in Google maps street view if the item in question is caught by the cameras.

May take a closer look once it stabilizes but I dont think it is worth over $50m.

[winner69]

A very perceptive CEO is Glenn -

IkeGPS chief executive Glenn Milnes says the company would have "much preferred" its shares to have risen ......
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11297773t

[Okebw]

The opening was so poor NZX has removed the IKE theme from its website early...

[Tomtom]

A very perceptive CEO is Glenn - IkeGPS chief executive Glenn Milnes says the company would have "much preferred" its shares to have risen ......
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11297773t
Milnes has said the company was not releasing "specific dates and timeframes" on when it expected to turn a profit.
"Getting to profitability is important to us," he said last month. That’s nice. With a business case like that I think the IPO actually went well.

[bmrm]

"Using three cameras, the software can even triangulate to figure out the distance between two points in the picture: whichever two points you pick out. "
http://gizmodo.com/while-you-werent-looking-dell-announced-the-worlds-mos-1632621335

Essentially a gimmick on a sub $1000 consumer tablet has the potential to replace ike's entire business.

[Copper]

So...

https://www.nzx.com/companies/IKE/announcements/253319

http://www.harbourasset.co.nz/our-people/

https://www.forsythbarr.co.nz/about-us/our-people/research

Thoughts?

I think your post number 5 is relevant and all this lot may have been blindsided by a lack of knowledge of what is available in the outside world.Brokers and others have to do research before they can invest other peoples money but how they explain the share price is beyond me.They may say it's a long term investment until it reaches 50 cents and then say it's too small a percentage of the portfolio and so we are selling it.Fund managers can escape client scrutiny until reporting time but then it may be too late for the poor investors.It's just the way it is.Balance would put a more enlightened outburst on the situation.IMHO.

[benjitara]

I note their latest announcement states that the partnership agreement signed in the USA generates revenues that meet their prospective turnover through the next two years! and in a interesting field of intelligence and defence. good on someone for keeping the wheels turning.

[babymonster]

have been thinking about investing tech companies like IKE or GTK, GEO. any suggestions anyone?

[KiwiGekko]

have been thinking about investing tech companies like IKE or GTK, GEO. any suggestions anyone?

I haven't looked at IKE in any great depth, so cannot really comment (and this is the IKE thread so sorry if my comments below are out of place).

But I do consider myself to have a pretty good understanding of GTK's business (and systems) and I don't consider their offering to be particularly ground-breaking, but they are established and do have paying clients. However the technology stack they use is dated and there aren't any plans to modernise this AFAIK. I understand this (and other things) to be causing a few issues with at least one of their more progressive customers opting to bring parts of their billing systems inhouse - a project that has been successful thus far and they are continuing to invest in this development. From my understanding their solution has been faster and more cost effective for them. This is a big warning sign IMHO & for that and many other reasons their SP would have to be massively undervalued for me to consider them.

I also have a good understanding of GEO and don't really have many positive things to say about their product or their track record so far - I believe they're currently looking for a CEO and burning through cash - until they prove themselves in what is a very competitive market (do a Google search for "job management software" and you'll see what I mean) or you fancy burning some cash I wouldn't entertain investing in this company either.

I've also had a few beers (which apparently makes me bearish on tech stocks!) so don't take my word for it DYOR etc.

[BFG]

have been thinking about investing tech companies like IKE or GTK, GEO. any suggestions anyone?

None of the above (especially GEO!!!)

I suggest you look at DIL, PAY and ERD :)

[babymonster]

Thanks both of u.

[Xirr]

Hi all

Ike GPS isnt exactly a popular stock in here but thought I'd update on their progress.

So lets begin.

Sales
Sales likely to be at least double FY14's - so lets be generous and say $5m or thereabouts. So could be down around ~20%-25% down on PFI. I think it probably more likely that sales will be down ~30-40% on PFI.

Lets drill down:

GE Mapsight sales
Down by 25% against PFI volumes. No info given on $$$. I’m guessing discounting has gone on to get even these volumes. No guidance given on FY16 sales other than saying that some FY15 sales have slipped into FY16.
Combined with the increase in OEM sales which suggests the branded sales are not going too flash, can I point investors to this language in the prospectus:
“If ike’s arrangements with GE do not result in a minimum amount of sales of GE branded products by the end of next year (31 December 2015) then either party may elect to terminate or renegotiate this relationship. Moreover, after 31 December 2015 the minimum royalty payments due to GE increase such that if ike does not significantly grow sales of GE branded products in later years, the per unit cost of the trademark license fee will increase – potentially materially (depending on the extent to which sales growth does or does not occur).”

Spike sales
While mapsight sales are bad, spikes are terrible. The prospectus stated that 2,533 units would be shipped including 381 sold on subscription. Including the subscription units (lowering estimated sales price), the average price assumed was $784 (~US$635). Removing the effects of subscription units, I’m guessing they thought they would be able to sell the units for US$700-US$800.
On 28 October 2014, ike announced an ‘introductory price’ of US$619 per Spike, indicating this was a special introductory offer. The price today – 6 months later? US$499.
The PFI said 2,533 units shipped – actual units shipped were 1,250 – that’s more than 50% down on PFI! What is worse – the prospectus states that “FY14A saw $0.9 million of Spike pre-orders that are projected to ship during FY15F and will be recognised as revenue in FY15F”.
Ike go on to say that spike sales are expected to beat PFI of $2.91m in FY16. At US$500 per unit and NZDUSD of 0.80 – that would mean unit sales of at least 4,656 – a volume increase of ~270% on FY15, where sales were 50% down on PFI. That is pretty believable huh?

OEM revenue (10% of FY16 revenue)
FY16 revenue is likely to by $2.5m, exceeding PFI FY16 revenue of $1.47m. This is not good, in my opinion its an admission that the GE Mapsight sales are a failure, and the company is having to rely on selling at lower margin to other manufacturers. OEM revenue is not the basis on which investors (should have) invested. The company pays significant licensing fees to GE and issued US$1m of shares to them for the upfront license.

Contract revenue (4% of FY16 revenue)
Likely to be materially greater than nil in FY15 – well that’s hard isn’t it?

This is about as disastrous an update as I have ever seen. Really shocked the price isn’t down substantially more than the 2% or so that it has moved.

Not an investor – wouldn’t have touched with a barge pole – but some light should be shone on these little companies.

[Xirr]

Can someone please help me out here? I think sales are down 30%-40% on forecast (note Ike has not stated how bad sales are down) and the shares are UP today 10% based on the 'good news' announcement here:

https://www.nzx.com/companies/IKE/announcements/263678

Does no one else see through this announcement and see how terrible it is?

[Harvey Specter]

Can someone please help me out here?
Does no one else see through this announcement and see how terrible it is?Maybe they were expecting it to be worse?

[Xirr]

Well I was right in thinking sales would be down 30% to 40% on prospective forecasts. This level of miss is incredible, and they are sticking by their FY16 forecasts.

In my opinion, they will be down 50%-70% on their FY16 forecasts.

If the market actually reacted to this information properly, the share price would be somewhere between 20c and 30c - I have a real issue with brokers bringing these crap companies to market. You have to wonder how much of the money that got invested was by way of broker-controlled kiwisaver or other managed funds.

[Harvey Specter]

and they are sticking by their FY16 forecasts.That is so they can justify a 200% valuation gap!

[JamesST]

Can someone please help me out here?

The moment I see something along the lines of "we would have met forecast if not for a timing issue where orders were delayed" I'm instantly turned off. This is a set up for a complete fail in the next financial year. I think it's just too tempting for a newly listed company to announce good news and hope they catch up to it. It just gets investor expectations completely out of whack.
The cash burn scares me too.

[Survfer]

Hi Guys,

I'm involved in a privately owned tech business and keep a weather eye on this forum to see what's being said about tech stocks. I hadn't considered posting until a while back when I saw Xirr's post #23 damning IKE. I like IKE (sounds like a presidential campaign bumper sticker from back in the 50's) so was going to immediately jump to their defence. I registered but in the end didn't bother to post, in part because I thought it would be better to wait until they released their financial accounts. I got up early this morning to watch the end of the cricket only to find there was a rain delay, the weather's also turned crud, so between paying computer games put this together - great cricket game with the right end result, fabulous catch by the quicks!

The one thing I strongly agreed with Xirr's was his comment "some light should be shone on these little companies". JamesST makes the same point in his post. The problem with these small cap companies is they are too small for the analysts to follow and there's little if any market supervision by the stock exchange. This means they can spin disaster into success through carefully crafted market releases with virtual impunity!

I have followed IKE since well before they IPO'd and like what they are doing mainly because IMHO they're creating their own niche market by introducing a disruptive technology. IKE's a speculative risk, I don't owned any shares but am seriously considering buying.

I had a quick look at their FY'15 accounts. They have around three years in reserves at the FY'15 burn rate so won't fall over anytime soon. I'm not an accountant but here's also the matter of the $0.5m invoiced and received but not booked to the revenue line whereas the costs were booked, unless they have offset it elsewhere it effectively makes the FY'15 result understated. I would give them another 6 months before making a more definitive call on their prospects going forward. The update for the 1st half of FY'16 should answer the question as to whether or not they were being upfront in their recent update.

I particularly like that IKE didn't start by trying to conquer the world, their target market for Mapsight was the utilities niche where they already appear to have a first mover advantage and hopefully will become the defacto industry standard. Perhaps replicate AutoCAD on a much smaller scale, you can only hope?

With a relatively expensive proprietary hardware Mapsight isn't targeting the consumer grade smart device market so they aren't going to sell a lot of this product into the bottom end of the SME market. On the flip side I can't see the smart device app developers successfully penetrating the utilities niche. While a small field service business might be happy to mobilise their field staff with relatively cheap consumer grade smart device, which inherently means there will be a lot misuse both from downloading non work related online content and actual physical damage to the devices, the utilities would prefer their staff to have proprietary ruggedized devices.

If there's one thing I question about Mapsight it's the Windows Mobile 6.5 platform which is basically obsolete. I assume at some stage they will migrate Mapsight to another development platform.

Moving onto Spike. Virtually every software developer is focusing on getting apps out for the consumer grade smart device market, with good reason. I think there is a big market for a cheaper version of IKE's technology so it will be interesting to see how Spike plays out particularly on the OE side. I would like to know a bit more about their patent applications as good IP protection is vital. Before buying any shares I will search their applications as part of my DD.

In my view IKE is an early stage GTK (utilities and airports), or even a Vista (movie theatres), in terms of market positioning because they can anchor their early business growth on a relatively few cornerstone customers using Mapsight. The added benefit is they can also play in the smart device market with Spike.

There was discussion in earlier posts comparing IKE to GEO in terms of investment opportunity. GEO released their unaudited FY'15 accounts late last week. Comparing IKE and GEO highlights to me why IKE is doing a lot right and GEO virtually nothing right, it's a train wreck about to happen. The key difference as we speak is IKE has around three years of cash in the bank at their current burn rate, GEO burning nearly as much cash on the back of less than a third the revenue has a few months at the most before running out of cash. The differences go a lot deeper, perhaps that's a topic for a second post if the weather doesn't improve?

[Xirr]

Survfer I hate to break it to you but the ike device has been sold for many many years before the investment bankers got involved and packaged ike's device up as something 'new'. It never cracked it and never will. It was licensed with another high profile company.

Ike should simply be a case study in how you can list any old crap at the moment.

My previous analysis stands.

[Survfer]

Xirr,

You based your original post on the proposition that some light should be shone on these little companies. I agree with you on that point. Hopefully the new NZXT market is a move in the right direction given the NZX has engaged Edison Investment Research to do quarterly reports on new entrants over their first three years in the market.

In terms of IKE's prospects time will tell if you are right, the next half year update will reveal if they were telling porkies about their FY'15/'16 revenue, a full year should give a good steer on whether or not they are going to succeed over the longer term. While IKE may be a high risk start-up it has a number of characteristics which differentiate it from "packaging any old crap" start-ups.

For the record Galvanized Group was formed in 2003, the name was changed to SurveyLab Group the same year and to IkeGPS Group in 2013, so it's been going for a bit over a decade. Jenny Morel's No8 Ventures invested $2m in 2005, a useful cash injection but wouldn't fund much development. It doesn't worry me they're over ten years old because until recently they were a tiny undercapitalised business and I'm sure like all of us they learnt by making mistakes. Even if the product is crap as you claim, in terms of the time it takes to develop and get new products to market it's hardly "old" crap.

When you say It was licensed with another high profile company the inference is they previously failed to exploit a significant sales opportunity. I assume you're talking about CERL and not the current deal with GE. They did a patent licence deal with CERL for the military version, working with the US military made good sense to get their product off the ground, most start-ups would see it as golden opportunity. But I doubt a US army research lab was ever going to be an effective sales partner, plus being beholden to a single dominant customer is often counterproductive to getting a product with broad appeal to market, the product can easily end up too bespoke. In the end IKE will sink or swim by selling into the private sector.

[Crackity]

Interesting posts Survfer - I tend to avoid tech stocks in growth phase as the cash flow statements always scare me. And a couple of listed tech stocks are scam material to fleece the gullible ( time will tell with these.....) - if this company truly has disruptive technology it could be successful - fingers crossed for them.

[Xirr]

http://www.ruggedpcreview.com/3_handhelds_juniper_archer_longbow.html

http://www.gemapsight.com/mapsight-solution/device/

As you can see - not a new product. it never cracked it then and unlikely to now. The FY16 projections are mad house material.

Apologies if I'm being a bit rough on the company, but I just really don't like Ike as an investment at the market cap it floated at. It's a bad look for new Zealand's capital markets to continually overinflate the worth of small tech companies and their prospects.

[Xirr]

Rule 10.1 : https://nzx.com/files/static/cms-documents/GN_contin_disclosure.pdf

From the market update on 30 April the share price stayed around 80c until financials were released on 29 May. Since that time, the share price has fallen around 25%.

Did the company's announcement provide continuous disclosure?

https://www.nzx.com/companies/IKE/announcements/263678

Excerpt

"Major FY16 sales announcement, FY15 update and FY16 outlook

Highlights
- Business on track to deliver growth opportunities
- Sales momentum pushes into FY16 with ground breaking orders from OEM channel
- FY15 revenue below PFI with timing of orders falling into the FY16 period
- US interest in making strategic investment
FY15 update and FY16 outlook
ikeGPS, the remote measurement firm, said that it expected its FY15 revenue would be up more than two times on its previous year. The company’s Before Tax result would exceed forecast (PFI FY15 forecast Loss before Tax of $5.33m) although its revenue would come in below forecast (PFI FY15 forecast revenue of $6.46m) primarily due to anticipated sales from its start-up smartphone solution falling just outside the 31 March 2015 financial year end."

[Survfer]

Xirr,

We're absolutely on the same page about inadequate disclosure, which is one reason I got off my backside to post for the first time. However, most of these start-ups gild the lily in their IPOs and market updates and on balance I don't see IKE being nearly the worst on the disclosure front. They put out a half year update on 25 November 4 months after they listed, the half year revenue of $1.7m, which would include a chunk of interest from the IPO war chest, made it clear to a prudent investor they were going to struggle to reach the $4.5m revenue target in FY'15. Their FY'15 financial reporting is reasonably comprehensive including a good breakdown of the differences between their FY'15 actuals and the prospectus forecast, even if it is hidden at the back.

I agree with you their FY'16 revenue forecast of $14.3m is an extreme stretch but disagree that the downward trend in the share price started after the FY'15 unaudited accounts were released. It started after the half year update was released when the share price was hovering between $0.90 and $1.00, by the time they disclosed the FY'15 financial result on 30 April the share price was around $0.80 and since then it has fallen into the $0.60's, the 50 day average trend looks reasonably consistent from when the half year update came out.

Looking back at their prospectus I can't see anywhere where they disclosed what happened with the Juniper partnership, it seems they started shipping the Archer Longbow version of MapSight in August 2011 and the partnership ended in early January 2012 after 5 months, so there must have been a serious falling out. While it may be legacy water under the bridge, and I doubt GE would let their brand be associated with IKE unless they were confident GE MapSight has a few legs, it isn't a good look they didn't disclose what happened. The Longbow looks like it was a hybrid of IKE's Mapsight and Juniper's Archer GPS device which doesn't feel like a cost effective solution given how easy it is to on board your own GPS functionality. Given your view on IKE's products I assume you know the history, I would be interested in hearing what caused the parting of the ways.

The way I look at IKE is their products serve a need in a niche market as well as being appealing to a range of potential customers in the niche. They have a modest but growing revenue and around 3 years of cash at the current burn rate, plus the falling NZD/USD cross rate is helping. Assuming they can get their annual revenue to a sustainable $15 to $20m over the next four to five years and keep their costs under control they are probably worth a punt, particularly if the share price falls further. On expense side looking at where the HQ is located and the salaries they are paying their senior management I don't get the sense they are overly spendthrift, but if they needed to cut their overhead costs there's room do so.

Back to the disclosure issue. When looking at the recent crop of IPOs arguably the worst in terms of disclosure is Geoop, I mentioned this in my first post. Given their chair is the former NZX CEO they might reasonably be expected to be squeaky clean in terms of disclosure. They recently informed the market "the company remains on track with original disclosure" which is far from the truth. I'm thinking about posting my views on this to the GEO thread and if I do would be interested in your thoughts on which out of IKE and GEO is the worst in terms of disclosure.

[kiwidollabill]

I see the NZVIF have just taken a stake - funder of last resort?

[Harvey Specter]

I see the NZVIF have just taken a stake - funder of last resort?they held it indirectly via no 8. Now it's out of lock up, they have taken direct ownership. They are still in the money (just( as they invested early but they would struggle to sell off that large a parcel in its current state.

More deets here (NBR unlocked): http://www.nbr.co.nz/article/nzvif-takes-ikegps-stake-inhouse-after-no-8-ventures-opts-distribute-shares-b-175890

[mshierlaw]

Trading halt today.

Seeking to use a small overseas purchase interest (0.5 M) to justify a new share issue @81c to include other investors. Bit early perhaps, they should still have heaps OF $$$$$ left from the IPO.

Par for the course .... your thoughts?

DISC not holding.

[winner69]

New Aussie money at 60 cents and SPP coming and an ASX listing soon could make this a decent short term punt

Punting being the word of course

[percy]

IKE was recently brought to my attention by someone whose record is second to none.!!
The 22nd of July presentation made excellent ready.
I greatly respect The Chairman,Rick Christie.He led Rangatira well as CEO, and his time at Ebos was very profitable for me.
I brought a small holding on 28th July at 70cents ps.The company will be a lot stronger with the capital raise,so I look forward to taking part in the SPP.

[Snow Leopard]

IKE was recently brought to my attention by someone whose record is second to none.!!
The 22nd of July presentation made excellent ready.
I greatly respect The Chairman,Rick Christie.He led Rangatira well as CEO, and his time at Ebos was very profitable for me.
I brought a small holding on 28th July at 70cents ps.The company will be a lot stronger with the capital raise,so I look forward to taking part in the SPP.

Presentation slide 33 being titled "FY17 outlook: Well positioned" is as good a reason to buy as any other I suppose.

Best Wishes
Paper Tiger

[percy]

Presentation slide 33 being titled "FY17 outlook: Well positioned" is as good a reason to buy as any other I suppose.

Best Wishes
Paper Tiger
Yes,I totally agree with you....lol.

[percy]

Share price rising on solid volume.
"well positioned"....????

[Leftfield]

Nice market update today.....sales looking good, some key inroads to the USA market, New products and services underway, cash position improving. Ticks a lot of boxes for me.

Read it here. (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/316556/277448.pdf)

Disc; small holding and happy. TA looks good, Golden Cross in place.

[percy]

Long term investors will be pleased to see the share price rise further on volume,478,802 shares traded at 57 cents,then sales at 58 cents.
I guess IKE is starting to attract momentum traders/investors.

[Survfer]

I was a real fan of IKE and joined the forum to go to bat for them, I liked the niche market strategy and to their credit their product has become a market leader in the niche. That doesn’t mean the business model is sustainable, I’m now struggling to see how they will achieve a sustainable long-term revenue stream. In my last post back on July’15 I stated:

“Assuming they can get their annual revenue to a sustainable $15 to $20m over the next four to five years and keep their costs under control they are probably worth a punt, particularly if the share price falls further”.

At the time they were forecasting revenue of $14.3m for FY’16 which was a real stretch, the actual was $9.2m followed by a dismal $5.8m in FY17. With a paltry $3.5m revenue in the 1st half of FY18 they’re going to struggle to get anywhere near $10m revenue for the full year. I suspect what’s wrong with their business model is too little recurring income, their early model was to sell the product outright rather than licensing it on a SaaS basis. Upfront sales help with early cashflow but risks decimating future revenue, particularly if the niche market isn’t that deep and sales run out of steam.

I still hope they succeed, it’s going to be tough!

[percy]

The market seems to feel they are succeeding.
The chart looks great,as the share price has risen to 58 cents.
I think the recurring income is increasing.

[winner69]

Pretty solid improvement being made ...looks good for the future

https://www.nzx.com/announcements/318732

Pretty sneaky way of saying we actually had a negative cash flow of $2.8m. Suppose it was ‘positive’ against a target though quick readers might read as a positive cash flow ....and suppose ‘used’ is one way of saying we spent more than we got in.

Extract-
Positive operating cash flow target met:
o Operating cash used in the full year of $2.8m

[percy]

Result out today shows revenue up 37%,and expected to grow 30% this year.
They expect operating cash flow breakeven for FY 19.
So getting there....................slowly?
And yes deferred income is increasing.

[percy]

Result out today shows revenue up 37%,and expected to grow 30% this year.
They expect operating cash flow breakeven for FY 19.
So getting there....................slowly?
And yes deferred income is increasing.

Today's announcement confirms they are "still getting there."

[kiwico]

Their CFO was at the NZX retail evening in Wellington last night. I didn't know very much about them but he was very passionate about the power poles in the US and the unique offering they have. Their gizmo saves 50% of time needed at the pole and 80% of the post-pole work. Very niche but great when the only competition is two men with a stick for each pole followed by hours using an Excel spreadsheet. Not yet holding but will look at further.

[Wasn't very impressed with the Team Talk CFO who seemed like an excited school boy and kept repeating himself.]

[percy]

Their CFO was at the NZX retail evening in Wellington last night. I didn't know very much about them but he was very passionate about the power poles in the US and the unique offering they have. Their gizmo saves 50% of time needed at the pole and 80% of the post-pole work. Very niche but great when the only competition is two men with a stick for each pole followed by hours using an Excel spreadsheet. Not yet holding but will look at further.

[Wasn't very impressed with the Team Talk CFO who seemed like an excited school boy and kept repeating himself.]

Thanks.I hope you buy a few and go to their agm later this year,as I would like a report on it from you.?.

[percy]

Another positive announcement this morning.

[whatsup]

$5 mil placement and a SPP to promote growth , is this a rebirth or a recap for this break through tech company , survfer where are you ?

[percy]

$5 mil placement and a SPP to promote growth , is this a rebirth of a recap for this break through tech company , survfer where are you ?

I can see their major customers wanting them to have a much stronger balance sheet.
Their customers have a lot at stake committing to IKE's platforms,and IKE falling over would cause them huge problems.
The new opportunities IKE are taking advantage of look good to me.
I will support the SPP as I think IKE is on track to be a successful company

[gbogo]

Looks like some institutions liked the story. And the follow-through buying might suggest they want to top up what they didn’t get in raise. In my experience, these kind of I stop don’t buy in for a few % points - they expect big returns.

I bought in a few months back because I liked the price action. I can see a big move higher, back towards $1.00, if 60c is broken this time.

[whatsup]

whatsup with IKE steady rise over the last month, .51 .60 , hmmmm !-

[Timesurfer]

whatsup with IKE steady rise over the last month, .51 .60 , hmmmm !-

Shhh .. I was hoping to pick up a few more before everyone got too excited

[percy]

Another positive result.

[winner69]

Another positive result.

Since when has a negative number been positive

Loss of $2.2m

[percy]

Since when has a negative number been positive

Loss of $2.2m

Since it was a lot lower than last year.Positive.
Outlook very positive.
Long term outlook.Extremely positive.

[winner69]

Since it was a lot lower than last year.Positive.
Outlook very positive.
Long term outlook.Extremely positive.

And share price very positive this year ...I could even win the stock picking competition if it kept increasing on the back of all this positivity

[percy]

And share price very positive this year ...I could even win the stock picking competition if it kept increasing on the back of all this positivity

You are getting the picture.
Reread the full announcement as the "big picture" looks positively exciting.!

[winner69]

You are getting the picture.
Reread the full announcement as the "big picture" looks positively exciting.!

I’ve been reading the announcements for years ...yes they are getting more positively exciting

[whatsup]

Is IKE
a "pick" for 2019 ?

[percy]

Is IKE
a "pick" for 2019 ?

It is one of mine.......
My only non dividend paying pick.

[Timesurfer]

It is my second largest portfolio holding so I am backing it for the comp.

[Ninefingers]

Ike lent us one of their units back in 2005 for field trials, doing seismic drilling in Western Australia, recording shotpoints etc. It was one of there very early units and it was clunky but worked, ultimately the data we got wasn't worth it for us at the time but I saw potential in the company then. I'd kind of forgotten about them since then, good to see they've kept developing their solutions and are still headquartered in humble old Newtown.

I like what they're doing, picked up a little packet this morning.

[percy]

Disappointed Bill Morrow has been issued 250,000 options, that have a strick price of 64 cents and expire 31/12/2021.
Current sp is 75 cents.So without adding any value, Bill is already $27,500 in the money.!!
No incentive for Bill to add value for shareholders.
Perhaps they should have had a strick price of $1.00.?

[whatsup]

Disappointed Bill Morrow has been issued 250,000 options, that have a strick price of 64 cents and expire 31/12/2021.
Current sp is 75 cents.So without adding any value, Bill is already $27,500 in the money.!!
No incentive for Bill to add value for shareholders.
Perhaps they should have had a strick price of $1.00.?


IMHO Golden handcuff he may have wanted to leave , one way of keeping someone imo .

[percy]

I guess today's downgrade comes as no real surprise.
I will continue to hold,as I have always expected sales will be a little lumpy.

[Timesurfer]

Elusive retirement moves another year further out. Hopefully only a minor hiccup in the greater scheme of things.

[Leftfield]

I guess today's downgrade comes as no real surprise.
I will continue to hold,as I have always expected sales will be a little lumpy.

Although not in my actual portfolio IKE was my least conviction punt in the 2019 stock picking comp and this news will probably end my short time near the top! :(

That said, I like IKE's chances and think this news is merely them being cautious/conservative. GLH's.

[percy]

Although not in my actual portfolio IKE was my least conviction punt in the 2019 stock picking comp and this news will probably end my short time near the top! :(

That said, I like IKE's chances and think this news is merely them being cautious/conservative. GLH's.

Agreed.............................

[Survfer]

Unfortunately, I’ve come to the opinion that IKE will continue to be an under-performer, yesterday’s release confirms my argument last year that their business model may be flawed because they lack a sustainable revenue stream.

I got badly beaten up by Xirr (guest) back in mid-2015 when I first joined specifically to go to bat for IKE in response to Xirr’s damning posts, he argued the promoters had over-hyped the product which he called "nothing new" crap hyped up by the promoters. Looks like he was fundamentally right!

The one thing Xirr and I agreed about was there’s little supervision of these small cap companies by the NZX, they can spin disaster into success through carefully crafted market releases with virtual impunity! IKE’s forecasts have been appallingly wrong.

This is a timely topic, a business friend sent me yesterday’s media release NZX & FMA initiate industry review: Capital Markets 2029. My response was:

“Had a squizz at the article, I’ll eat my hat if they can turn the NZX around.

The fundamental problem is NZ is such a small capital which the NZX can’t do much about, its top heavy and inefficient relative the larger overseas bourses.

It doesn’t help that the NZX arguably doesn’t effectively enforce the listing rules and the FMA doesn’t adequately police the NZX, investors can’t rely on their governance for protection from the cowboys. A good example is there’s no serious vetting of market sensitive company announcements, the cowboys get away with murder by over-hyping financial projections, and the NZX was proposing to stop doing any policing of announcements at all.”

[Timesurfer]

Unfortunately, I’ve come to the opinion that IKE will continue to be an under-performer, yesterday’s release confirms my argument last year that their business model may be flawed because they lack a sustainable revenue stream.

I got badly beaten up by Xirr (guest) back in mid-2015 when I first joined specifically to go to bat for IKE in response to Xirr’s damning posts, he argued the promoters had over-hyped the product which he called "nothing new" crap hyped up by the promoters. Looks like he was fundamentally right!


Not sure it was that bad a release.

Either way, I am hoping you are wrong as I took the opportunity to add a bunch more to portfolio.:scared:

[Lewylewylewy]

I looked at these today. I figure they're currently about twice the price they should be at the moment. Also they're not doing as well as they should for a company that started up in 2003. They should be a bit further along than they are. Wasn't impressed by the 2 errors i found on their website when searching the resellers list.

That said, they started that they're onto the path of breaking even. Maybe they'll come good one day.

Though i would love to know the size of the market to understand whether that's even worth a punt.

Currently, I'm staying clear.

[winner69]

This sounds like good news

Hope share price recovers some of its lost ground

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/332383/297279.pdf

[percy]

Significant/significantly.
The use of either once in an announcement signals "hold"
Used twice signals "buy"
Used three times signals "strong buy".
Interesting enough Glenn Milnes used it three times in today's announcement.???!!..............................lo l.


However it is disappointing "EBITDA breakeven for Q4 FY19 will not be achieved."

[Timesurfer]

Certainly not as strong as originally hoped, however, the fact that they continue to show strong growth in today's climate of pearshapped results suggests that they are doing something right.
Happy to see what next year delivers. I am hoping for retirement, but will settle for a decent holiday.

[percy]

Two more major accounts added.

Getting there.

[Ninefingers]

Two more major accounts added.

Getting there.

Yep.

It took AT&T 18 months to standardise to IKE, could one safely assume with implementation lessons learnt from that, that these new clients could standardise IKE into thier contracts sooner?

A US wide owner of fibre and 5G infrastructure must use a lot of contractors.

[Timesurfer]

I would imagine any company that sees its competition has a 20% plus edge is going to move reasonably quickly.

However, I'd guess that IKE would struggle to manage if the entire American continent switched overnight. Slow and steady is how they built Rome I believe.

I haven't seen their software but one would hope it is more intuitive than their website. Just because you can doesn't mean you should - their website is a throwback to the turn of the century when flash was taking off and cutting edge websites were all flashing text and moving arrows. Or maybe I am just a technophobe?

[Leftfield]

Pretty good result today IMHO..... still not 'profitable' but steady gains to that goal. USA sales likely to accelerate in FY20.

Here's the link. (https://www.nzx.com/announcements/335301)

Particularly like this look at the future;

“Looking to FY20 our focus remains squarely on the North American Communications & Electric Utility sector. From a market timing perspective, the pace of investment into fiber networks continues to increase. The U.S. fiber market is estimated to be at year-two of a seven-year investment super-cycle exceeding $300B, and with more than 200 entities competing to deploy networks. An additional market tailwind emerging relates to 5G, the next generation mobile technology. IKE has recently been involved in aerial make-ready engineering projects specific to 5G network deployments where IKE Analyze materially improves site assessment workflow productivity. We are pleased to be in front of this market which is also global in nature.”

[SilverBack]

Disappointing that they have not reached their cashflow positive target which they have been promising for a while. Overall revenue growth of just 4% is not what I have been looking for. Fair enough to major on the Communications & Cable side of the business but they have clearly neglected the other business areas and this probably reflects the low level of resources in the company. I would say that it is over-valued at present with such a low growth rate. Even though a return to a higher rate of increase in revenues is hoped for, that needs to be proven.

I would like to see pick up the ball again in relation to all the business areas before competition moves in to those other areas and beats them.

[percy]

Does not look like they will reach cash flow positive before they come back to us for more capital.
Talking the talk,but walking the walk is more difficult.
The market liked the result a lot more than I did.
Not selling,but not buying any more either.

[sb9]

Pretty good result today IMHO..... still not 'profitable' but steady gains to that goal. USA sales likely to accelerate in FY20.

Here's the link. (https://www.nzx.com/announcements/335301)

Particularly like this look at the future;

“Looking to FY20 our focus remains squarely on the North American Communications & Electric Utility sector. From a market timing perspective, the pace of investment into fiber networks continues to increase. The U.S. fiber market is estimated to be at year-two of a seven-year investment super-cycle exceeding $300B, and with more than 200 entities competing to deploy networks. An additional market tailwind emerging relates to 5G, the next generation mobile technology. IKE has recently been involved in aerial make-ready engineering projects specific to 5G network deployments where IKE Analyze materially improves site assessment workflow productivity. We are pleased to be in front of this market which is also global in nature.”

After listening to their conf call, looks like they're gaining more traction this year and CEO mentioned they won another contract y'day (think T-Mobile) within less than 48 hrs turnaround time which is worth about $400k or so. And he did mention they've good pipeline of opportunities they're currently working on.

And when answering a question about do they require a cap raise this year, the answer was a firm "NO".

[Leftfield]

After listening to their conf call, looks like they're gaining more traction this year and CEO mentioned they won another contract y'day (think T-Mobile) within less than 48 hrs turnaround time which is worth about $400k or so. And he did mention they've good pipeline of opportunities they're currently working on.

And when answering a question about do they require a cap raise this year, the answer was a firm "NO".

Thanks sb9. Much appreciated. The Cap raise response is v useful.

(Disc - I don't hold IKE, but it is on my watch list and has inched higher on that list today IMHO.)

[percy]

After listening to their conf call, looks like they're gaining more traction this year and CEO mentioned they won another contract y'day (think T-Mobile) within less than 48 hrs turnaround time which is worth about $400k or so. And he did mention they've good pipeline of opportunities they're currently working on.

And when answering a question about do they require a cap raise this year, the answer was a firm "NO".

Thank you for your post.

[Timesurfer]

After listening to their conf call, looks like they're gaining more traction this year and CEO mentioned they won another contract y'day (think T-Mobile) within less than 48 hrs turnaround time which is worth about $400k or so. And he did mention they've good pipeline of opportunities they're currently working on.

And when answering a question about do they require a cap raise this year, the answer was a firm "NO".

Better news indeed.
They are well placed, but if they can't capitalise on the opportunities it will be a long road ahead for shareholders.
Happy to sit tight for another year and see how they progress.

[Timesurfer]

More good news met by a drop in SP :(
Admittedly, it won’t show up on the balance sheet immediately but these are recurring revenue sales if I understand their business model correctly so eventually the growth should turn exponential.
I am sure at some point I will think I should have added some more at the current price.

[percy]

Seems as though 50 cents, or there abouts, is the support level.
I too may buy a few more once the share price shows it is in an uptrend.

[sb9]

More good news met by a drop in SP :(
Admittedly, it won’t show up on the balance sheet immediately but these are recurring revenue sales if I understand their business model correctly so eventually the growth should turn exponential.
I am sure at some point I will think I should have added some more at the current price.

Sure, any amount good FA news isn't going to help as long as there a seller who keeps feeding the sell side for whatever reason.

[Ninefingers]

Another contract, looking alright if they keep adding up.

[Timesurfer]

Sure, any amount good FA news isn't going to help as long as there a seller who keeps feeding the sell side for whatever reason.

Maybe that seller is starting to think he might be missing out and dialed back a bit?

[SilverBack]

A company is only worth what someone eise is willing to pay for it. What I find interesting is that IKE is actually trading on the ASX these days after several years with virtually nothing.
Definitively a positive announcement today but what are they going to do with their other target markets apart from cables of one kind or another (e.g. signage, builders, Home Depot, Stanley etc)?.

[sb9]

Maybe that seller is starting to think he might be missing out and dialed back a bit?

One would hope so, however need to see to pick up in volume with higher price.

[sb9]

Maybe that seller is starting to think he might be missing out and dialed back a bit?

Looks as though the tide might be turning? Bit early to call though.

[Leftfield]

Looks as though the tide might be turning? Bit early to call though.

Hope you are right, I need a miracle from IKE if I'm going to sneak higher in the Share Picking comp!! lol.

(not held in my portfolio - but watching carefully)

[Timesurfer]

Everything but the share price moving in the right direction :(
Looks like I will have to buy some more.

[percy]

Everything but the share price moving in the right direction :(
Looks like I will have to buy some more.

Yes announcements are positive.

[Nigelk]

Revenue up, SP down.
Hmmmmm

[Timesurfer]

A bit of interest today ahead of the report tomorrow (and wasn’t all me).
Hopefully, no surprises and strengthening balance sheet will encourage more support.

[Balance]

IKE - IPO from the same broker who brought you :

Wynyard
CBL
Feltex
Intueri
SCF
Credit Sails*

What do the above all had in common?

Then there's

MPG

Evolve

You are a brave lot here investing in IKE! Hats off to your courage!

* Forsyth Barr through its MD Neil Paviour-Smith actually tried to distance the firm from being an active promoter of Credit Sails but was caught bare-faced lying due to emails ('catch flies with honey, not vinegar) which led to the $60m settlement.

[percy]

IKE - IPO from the same broker who brought you :

Wynyard
CBL
Feltex
Intueri
SCF
Credit Sails

What do the above all had in common?

Then there's

MPG

Evolve

You are a brave lot here investing in IKE! Hats off to your courage!

No surprises here when you realise the same Chairman steered Rangitara and Ebos so well.
Remember Mark Waller brought the Ferrari on his watch.

[Balance]

No surprises here when you realise the same Chairman steered Rangitara and Ebos so well.
Remember Mark Waller brought the Ferrari on his watch.

I know Mark Waller personally and you should take care & due notice not to confuse Mark's self-confessed love of BMWs, Porsches & Ferraris (which he does not show off) with others who think that owning or being pictured with a Ferrari or other exotic cars in Annual Reports = great company.

I recall very well when Mark bought his first brand new BMW - he was almost apologetic about it as he knew staff and the great Christchurch unwashed envy brigade * would criticize him for his purchase. So he kept it out of sight and enjoyed over the weekends.

* same brigade who thought Allan Hubbard walked on water because he drove and was always pictured with his VW.

[Timesurfer]

If it does as Badly as PLX I probably won’t be too disappointed.
Being a gambling man I am working on the know when to hold them and know when to fold them principle. No doubt if I get burnt a few more times I’ll have to rethink my strategy but in the meantime it keeps me amused.
While the contracts keep coming in I will keep believing the dream.

[Balance]

If it does as Badly as PLX* I probably won’t be too disappointed.
Being a gambling man I am working on the know when to hold them and know when to fold them principle. No doubt if I get burnt a few more times I’ll have to rethink my strategy but in the meantime it keeps me amused.
While the contracts keep coming in I will keep believing the dream.

*Try Snakk, Plus SMS, CER, Orions Minerals, SeaDRagon, Cannsouth too? Same roots.

[Timesurfer]

*Try Snakk, Plus SMS, CER, Orions Minerals, SeaDRagon, Cannsouth too? Same roots.
They must be overdue for a success story then!

[Balance]

They must be overdue for a success story then!

What are you writing about? They are all raging successes. Just not for the mugs who bought the shares off them!

[percy]

I know Mark Waller personally and you should take care & due notice not to confuse Mark's self-confessed love of BMWs, Porsches & Ferraris (which he does not show off) with others who think that owning or being pictured with a Ferrari or other exotic cars in Annual Reports = great company.

I recall very well when Mark bought his first brand new BMW - he was almost apologetic about it as he knew staff and the great Christchurch unwashed envy brigade * would criticize him for his purchase. So he kept it out of sight and enjoyed over the weekends.

* same brigade who thought Allan Hubbard walked on water because he drove and was always pictured with his VW.

Being CEO then Chairman of a medical supply business, is very different from being Chairman of the largest second hand motor vehicle dealer in NZ.

[Balance]

Being CEO then Chairman of a medical supply business, is very different from being Chairman of the largest second hand motor vehicle dealer in NZ.

Being the CEO of a very very very successful company which has generated huge amounts of wealth for shareholders & driving a Ferrari (without showing off) is indeed very different!!!!!

[Timesurfer]

I have to say the car one drives doesn’t particularly impress me one way or the other - some might say a ridiculously impractical car is purely compensation for lacking in other areas. But who am I to judge.

If I am looking purely at the performance of IKE I see a company that is growing and winning recurring income contracts in a rather large field. There is a fair amount of international potential, they appear to be ahead of their competition which gives them a reputational advantage if not an intellectual advantage.

The management appear to be doing an adequate job. Growth may be a little slower and lumpier than perhaps we would like but that is the nature of the contracts they are bidding on.

As long as the revenue line keeps climbing it is hard to see things going terribly wrong at this juncture. I have been wrong before and stand to be corrected again. However, looking forward to see what news tomorrow brings.

[percy]

Being Chairman of NZ largest used vehicle retailer and owning a Ferrari shows you are the right person for the job.
A businessman who is a "petrol head" at heart.

[Balance]

Being Chairman of NZ largest used vehicle retailer and owning a Ferrari shows you are the right person for the job.
A businessman who is a "petrol head" at heart.

That's what the Fonterra board said : "Being farmers, we know what's the best for farmers."

Or more down to earth, a good mother does not have to own a cow in the backyard to know where good milk comes from!~

More to point, TRA has gone backwards in the last 5 years while EBOS has gone up by more than 150%!!!!!

Guess which individual really knows how to drive a Ferrari!

[percy]

As usual I think we must agree never to agree.
However I must point out I have never seen either drive at speed.
Yes I held EBO for over 25 years and did very well.No longer hold.
My TRA holding has seen a share price decline, and an increase in fully imputed paid quarterly divies.
So they are serving their purpose,which was to be part of my dividend paying section of my portfolio..
IKE is a small part of my capital growth section of my portfolio.Whether I add or not will depend on their results.

[Balance]

As usual I think we must agree never to agree.

Share price & profit performances over 5 years are enough for me to judge who knows how to drive a Ferrari better!

[percy]

Share price & profit performances over 5 years are enough for me to judge who knows how to drive a Ferrari better!
Really ???????????????????//

[Balance]

Really ???????????????????//

Absolutely!

Baker has driven his Ferrari (TRA) into the ditch by the side of the road and the Ferrari is currently being evaluated for damages to be fixed.

Waller has driven his Ferrari (EBOS) onto the autobahn and is speeding along at 150 mph, leaving Baker's TRA in the ditch!

[percy]

I owe you an apology.
Never thought you had a sense of humour...
Good one,..

[Balance]

I owe you an apology.
Never thought you had a sense of humour...
Good one,..

It’s only money, Percy. No need to be too serious.

[SilverBack]

It’s only money, Percy. No need to be too serious.

Of course Balance. Give me $3.00 for my TRA and have a laugh. Go on.
IKE, I need more for though.

[percy]

Positive,positive,positive announcement today.
Ticked all the boxes for me.
Increased revenue,increased margin,and cash burn seems to have halted.

[Timesurfer]

It’s only money, Percy. No need to be too serious.
That is what I keep telling the bank but they hold onto it like there is no tomorrow when I show up.
The IKE dream lives on to fight another day. Hopefully they deliver the current contracts in fine style and everyone will want to come and play.

[sb9]

Positive,positive,positive announcement today.
Ticked all the boxes for me.
Increased revenue,increased margin,and cash burn seems to have halted.

Agree on all those points, solid start for FY20 with 1st qtr looking very strong and good pipeline of contracts to work through.

[Timesurfer]

Someone thinks it is a good investment - they have just bought 2 shares

[sb9]

Someone thinks it is a good investment - they have just bought 2 shares

https://www.nzx.com/announcements/337892

Director Alex Knowles definitely thinks its a fine investment.

[percy]

https://www.nzx.com/announcements/337892

Director Alex Knowles definitely thinks its a fine investment.

Positive...............................

[t.rexjr]

https://www.nzx.com/announcements/337892

Director Alex Knowles definitely thinks its a fine investment.

Was that on market? And prior to the Annual Report, contract expansion and performance upgrade announcements? or is that me Sunday brain...

[sb9]

Was that on market?

Does not say explicitly but from the notification it says purchases between 24 June to 9 July and from that I assume its on market purchases. And volume between those periods does confirm to what was bought by Director.

[Leftfield]

Nice update today...see it here. (https://www.nzx.com/announcements/340450)

＋ Projected record revenue of approximately $5.0m.
＋ Success and growth of IKE Analyze has resulted in improvement in the quality, predictability, and sustainability of earnings with approximately 70% of revenue now from IKE Analyze transactions or recurring software subscriptions.
＋ Projected approximately EBITDA breakeven Q2 FY20, continuing the positive performance trend with both May and June also being EBITDA positive.
＋ Total cash and receivables at 30 September 2019 are expected to be approximately equal to 31 March 2019, at between $4.5m to $4.8m.
＋ Projected record gross margin of approximately $3.6m and with gross margin percentage of greater than 70%.

[percy]

Nice update today...see it here. (https://www.nzx.com/announcements/340450)

＋ Projected record revenue of approximately $5.0m.
＋ Success and growth of IKE Analyze has resulted in improvement in the quality, predictability, and sustainability of earnings with approximately 70% of revenue now from IKE Analyze transactions or recurring software subscriptions.
＋ Projected approximately EBITDA breakeven Q2 FY20, continuing the positive performance trend with both May and June also being EBITDA positive.
＋ Total cash and receivables at 30 September 2019 are expected to be approximately equal to 31 March 2019, at between $4.5m to $4.8m.
＋ Projected record gross margin of approximately $3.6m and with gross margin percentage of greater than 70%.

Thanks for your post.
As you say a nice update.
That Q2 FY20 EBITDA breakeven quarter ends at the end of this month.Positive.

[winner69]

Nice update today...see it here. (https://www.nzx.com/announcements/340450)

＋ Projected record revenue of approximately $5.0m.
＋ Success and growth of IKE Analyze has resulted in improvement in the quality, predictability, and sustainability of earnings with approximately 70% of revenue now from IKE Analyze transactions or recurring software subscriptions.
＋ Projected approximately EBITDA breakeven Q2 FY20, continuing the positive performance trend with both May and June also being EBITDA positive.
＋ Total cash and receivables at 30 September 2019 are expected to be approximately equal to 31 March 2019, at between $4.5m to $4.8m.
＋ Projected record gross margin of approximately $3.6m and with gross margin percentage of greater than 70%.

IKE just been a squiggly line on a chart to me .....didn’t realise that sales so minuscule.

Never mind - a good report and hopefully it’ll get Craig’s excited and they’ll put out a glowing report to get share price back to 70 cents or higher

[percy]

IKE just been a squiggly line on a chart to me .....didn’t realise that sales so minuscule.

Never mind - a good report and hopefully it’ll get Craig’s excited and they’ll put out a glowing report to get share price back to 70 cents or higher

Yes it would be pleasing to see Craigs initiating research/coverage of IKE.
Possibly the 5G networks opportunities will get them excited as I am.?

[winner69]

Yes it would be pleasing to see Craigs initiating research/coverage of IKE.
Possibly the 5G networks opportunities will get them excited as I am.?

Isn’t that 5G thingie going to make us all sick ....not that exciting if that’s the case

[percy]

Isn’t that 5G thingie going to make us all sick ....not that exciting if that’s the case

Shouldn't do as IKE is only involved in USA 5G.

[sb9]

Thanks for your post.
As you say a nice update.
That Q2 FY20 EBITDA breakeven quarter ends at the end of this month.Positive.

Despite all positive news and traction, there seem to be one entity that's keen to offload at lower levels. Hopefully there's a turnaround.

[Timesurfer]

Finally a splash of green. The recurring revenue model has to start compounding over the next couple of years. Still one of my top holdings and still looking forward to where we might go.

[sb9]

Its a shame they couldn't do webcast of ASM, which is currently on in Wellington.

[kiwico]

Its a shame they couldn't do webcast of ASM, which is currently on in Wellington.

It was a small gathering at the ASM, around 20 of us plus the board, almost all of us older white men. The NZSA were also in attendance.

There was a question from the floor as to whether they were a takeover target. there was no direct response but they did mention they were getting noticed.

Have involvement with 8 out of the 15 leading players, five of these eight are established whilst the others are pilots. No major tier company has not continued with them after a pilot, the main issue is getting the pilot in the first place.

IKE's moat was seen as becoming the standard for a process to view the assets as a record.

There are 220m poles in the US with 6/7 companies attaching items to such poles. IKE tries to make it easy to adopt their process but more difficult to leave.

I had to leave to head back to work so wasn't there for the entire meeting.

[Leftfield]

Thanks for posting Kiwico. Watching with interest and following this week have added some to my portfolio.

[sb9]

It was a small gathering at the ASM, around 20 of us plus the board, almost all of us older white men. The NZSA were also in attendance.

There was a question from the floor as to whether they were a takeover target. there was no direct response but they did mention they were getting noticed.

Have involvement with 8 out of the 15 leading players, five of these eight are established whilst the others are pilots. No major tier company has not continued with them after a pilot, the main issue is getting the pilot in the first place.

IKE's moat was seen as becoming the standard for a process to view the assets as a record.

There are 220m poles in the US with 6/7 companies attaching items to such poles. IKE tries to make it easy to adopt their process but more difficult to leave.

I had to leave to head back to work so wasn't there for the entire meeting.

Thanks for the update kiwico, much appreciated. Sounds very promising and there could be takeover play by an US based entity, just a speculation on my part though.

[sb9]

And that mystery low price seller is back....what a surprise

[sb9]

Just noticed buyers on both NZX and ASX are at same price level $0.55c.

First time have noticed bit of buyer interest from ASX which was non-existent for few months.

[Leftfield]

And that mystery low price seller is back....what a surprise

Interesting day today. Looking at the TA I think we are beginning to see a break upwards. Both MACD and RSI looking more positive. Time will tell.

(Disc - only a small stake at the moment, will increase if trend and news improves.)

[Timesurfer]

It seems the ASM may have awakened some as to the undervalued potential. Nice to see some consistent pressure in the green direction continuing.
Spring is upon us and my portfolio is starting to show some signs of life after a long cold winter with multiple die backs.
Maybe the world is not about to end after all?
It would certainly be nice to see IKE with a 7 back in front again.

[percy]

Looks as though we are "well positioned,"...lol.

[sb9]

Looks as though we are "well positioned,"...lol.

Seem to be getting noticed out there, one or two big boys interest is all we need.

[percy]

Seem to be getting noticed out there, one or two big boys interest is all we need.

The share price is increasing on reasonable volume,which is positive.
Only 3243 for sale at 63 cents,then 25,000 at 64 cents.

[Timesurfer]

The share price is increasing on reasonable volume,which is positive.
Only 3243 for sale at 63 cents,then 25,000 at 64 cents.

The 79000 and 72000 sitting back on the buys side is particularly encouraging. It has been a while since we have seen that kind of interest.
"Well positioned" I am.

[sb9]

It seems the ASM may have awakened some as to the undervalued potential. Nice to see some consistent pressure in the green direction continuing.
Spring is upon us and my portfolio is starting to show some signs of life after a long cold winter with multiple die backs.
Maybe the world is not about to end after all?
It would certainly be nice to see IKE with a 7 back in front again.

Might see that 0.7 back in front of IKE sp sooner than later.

[Cobber]

Might see that 0.7 back in front of IKE sp sooner than later.

Glad to say I've joined the IKE game. This investment looks like a no brainer when you consider their innovative technology and lack of competition.

If they can become the defined standard for utilities management, they could be huge in 5 - 10 years.

[Ninefingers]

68c line wiped this morning...having bought at the recent peak it's nice to see movements back up this way :t_up:.

One thing I've been wondering is how the renewables drive in the US could open up markets for them, I know they are mostly focused communications infrastructure, but what about each wind turbine or solar panel needing an asset record.

[sb9]

68c line wiped this morning...having bought at the recent peak it's nice to see movements back up this way :t_up:.

One thing I've been wondering is how the renewables drive in the US could open up markets for them, I know they are mostly focused communications infrastructure, but what about each wind turbine or solar panel needing an asset record.

Might see the $0.70c price point hit today with bit of luck and push.

[Cobber]

68c line wiped this morning...having bought at the recent peak it's nice to see movements back up this way :t_up:.

One thing I've been wondering is how the renewables drive in the US could open up markets for them, I know they are mostly focused communications infrastructure, but what about each wind turbine or solar panel needing an asset record.

Or open an office in Canada and Europe. I mean there must be over a billion power poles around the planet.

These guys are solving a really cool problem.

[sb9]

Might see the $0.70c price point hit today with bit of luck and push.

Forget 70c might see it back at or below 60c very soon

[Timesurfer]

Temporary glitch. Dollar by Christmas!

[trader_jackson]

https://www.nzx.com/announcements/341702

Was a capital raising signalled at the AGM just a few weeks ago?

[percy]

Like all acquisitions time will tell whether this one is successful or not.At this stage it appears to make sense.
With 90,984,305 shares currently on issue the market cap is $57,908,035,so it is not a huge capital raising.
Although we will be deluted with extra shares being issued at 60 cents I will support the capital raise.How much by at this stage I don't know.

[Timesurfer]

It does explain the recent push in the share price.
Looks like a good deal though on the surface of it.

[sb9]

Decent parcels crossed after market at 65c, which could mean one or two big boys didn't get their full allocation and are buying on-market. Will find out tomorrow how institutions placement went.

[percy]

That's positive.
Thought the sp was going to go below 60 cents,which would have put me off applying for more .

[Cobber]

That's positive.
Thought the sp was going to go below 60 cents,which would have put me off applying for more .

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12271510

I'm really starting to love these guys story. A smart acquisition that will add to the bottom line from day 1.

[sb9]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12271510

I'm really starting to love these guys story. A smart acquisition that will add to the bottom line from day 1.

Will have to scrape thro' to find some money by next week to take part in SPP.

[Leftfield]

Will have to scrape thro' to find some money by next week to take part in SPP.

Offer closes tomorrow....

FWIW I've decided not to participate. Although I like the long term prospects I suspect there is some short term downside to the offer SP. Time will tell.

[sb9]

Offer closes tomorrow....

FWIW I've decided not to participate. Although I like the long term prospects I suspect there is some short term downside to the offer SP. Time will tell.

Most likely no participation from me too. My buy price is slightly lower than SPP offer price and I've a fair few that I'm comfortable with.

PS - no money available to invest which probably is the main reason.

[sb9]

Nice endorsement from retail shareholders...

"ikeGPS Group Limited (NZX: IKE) (ASX: IKE) is pleased to announce that its Retail Offer has closed substantially oversubscribed with approximately $3.9 million of applications being received against the $1.0 million target.
IKE has accepted $0.5 million in oversubscriptions, the maximum oversubscription amount permitted by the offer structure, meaning that $1.5 million will be allocated to shareholders (leaving approximately $2.4 million of oversubscriptions). As a result of the high level of participation, applications were scaled in accordance with the rules of the Retail Offer (contained in the Offer Document dated 1 October 2019)."

[Timesurfer]

The only good news I had today!

[Dlownz]

Hmm but we get scaled back a bit. I'd rather have got my full allotment

[Brain]

With 2.4 M$ returned to shareholders I guess we should see some enthusiastic buying and the last sale at 66c will soon be considered a bit of a bargain.

Disclosure - was not a shareholder so I could not participate in the issue but have been buying in the last few weeks.

[sb9]

With 2.4 M$ returned to shareholders I guess we should see some enthusiastic buying and the last sale at 66c will soon be considered a bit of a bargain.

Disclosure - was not a shareholder so I could not participate in the issue but have been buying in the last few weeks.

Looking that way as per trading pattern today.

[Timesurfer]

I think a few have had their eyes opened to the potiential with this deal going through so hopefully it will build a bit more support going forward. Should be some wind in their sails next year with the extra revenue boost.

[Leftfield]

... Although I like the long term prospects I suspect there is some short term downside to the offer SP. Time will tell.

Well I got that wrong. Now up to 70c!

FWIW happy holder with some spare $ to push towards the SKO offer.

[Timesurfer]

New ATH today? Can't let SKO have all the fun.

[Timesurfer]

New 2 year high ... I might be able to retire one day yet. Onward and upward you good thing.

[sb9]

New 2 year high ... I might be able to retire one day yet. Onward and upward you good thing.

80c now and no signs of abating currently.

[Timesurfer]

80c now and no signs of abating currently.

It is about to abate ... unless you do us a favour and list some more :t_up:

[Ninefingers]

Nice buying interest this morning.

Quite the CV Chris Ronan has. Happy to hold this one.

[sb9]

Nice buying interest this morning.

Quite the CV Chris Ronan has. Happy to hold this one.

Any update/upgrade re further customer acquisition would see this easily push towards $1 mark.


It is about to abate ... unless you do us a favour and list some more :t_up:

Not letting go any of mine...:D

[sb9]

Good appointment...

IKE appoints Mark Ratcliffe, former CEO of Chorus, as non-executive director

https://www.nzx.com/announcements/344320

[Timesurfer]

Maybe this week will see us push past the list price?

[Cobber]

Maybe this week will see us push past the list price?

I think the next push might come after 6 month results provided they are favorable.

[Cobber]

Aren't the 6 months results meant to be out by the end of November??

[sb9]

Aren't the 6 months results meant to be out by the end of November??

Should be out tomorrow I think...

[sb9]

https://www.nzx.com/announcements/345176

Results out and at first glance looks very bullish...$1 here we come!!!

[Timesurfer]

https://www.nzx.com/announcements/345176

Results out and at first glance looks very bullish...$1 here we come!!!

I hope you are right. Currently well positioned :)

[percy]

Indeed "well positioned".
An excellent result and an extremely positive outlook.

[Timesurfer]

Less than $5k of trades drives the price up 3.6%, even with plenty on the sale side the punters seem to be hanging out for their price.
Looks like I might have to look elsewhere for my Christmas presents this year. Still good buying this side of a dollar though I suspect we will find by next year.

[Cadalac123]

Does anyone know who IKE's major competitors are? Can't really find any other companies online with my limited research.

[stealthmaster]

Good news- https://www.nzx.com/announcements/346981

[winner69]

Good news- https://www.nzx.com/announcements/346981

What’s a SVP

Suppose VP is Vice President.....what’s the S

Is this just a glorified title for Product Manager in lingo us oldies use.

[percy]

Yes, same thing but paid way too much. Senior Vice President. Then when they want to leave even less in the tin for shareholders they can move up to EVP or Executive Vice President. At that point I think they are freed from the tiresome burden of doing any work and can focus on flying around in the company jet.

Should have waited for your post before ringing the company.!..lol.

[Cadalac123]

I think it's a good appointment. IKE has such potential happy to hold long-term, bearing in mind their risk of being outcompeted long-term by a giant and/or taken over. I am yet to find their direct competitors.

[Cadalac123]

SP falls.. on this news? haha

[Timesurfer]

I guess he wasn't a popular choice. Or those in the know fear the company jet will be burning all the potential profits with his appointment.
I think they are well positioned Cadalac - when big US companies are writing IKE into their SOPs. They appear to have first mover advantage if a competitor does appear. A takeover is probably more on the cards when one of their customers decides to block its competitors.

[winner69]

Everything is at record levels at IKE

And may the share price push on to newer record highs

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/347561/315750.pdf

[Cadalac123]

Awesome report. Recurring revenue is getting ridiculously good now. Clearly marking a solid footprint in the industry to be able to achieve this record performance.

Key point from this little update is the revenue growth implies 2mil in the last 3 months, meaning a minimum of 2mil in the next 3 would already give a significantly bigger revenue growth trend that the sluggish one achieved between 2018-2019. This is further supported by the fact they projected high transactional volumes in Q4.

[Timesurfer]

Happy holder.
I think they have a strong team and business model that will only get better year on year as they grow their customer base.

[sb9]

Awesome report. Recurring revenue is getting ridiculously good now. Clearly marking a solid footprint in the industry to be able to achieve this record performance.

Key point from this little update is the revenue growth implies 2mil in the last 3 months, meaning a minimum of 2mil in the next 3 would already give a significantly bigger revenue growth trend that the sluggish one achieved between 2018-2019. This is further supported by the fact they projected high transactional volumes in Q4.

Well after such an awesome update, couldn’t help myself from getting another top up this morning. Should be past $1 soon.

[sb9]

Seems as though some pesky one is not happy with more than 72% gross margin and greater than 70% revenue coming from transaction and recurring sources in FY20.

[t.rexjr]

Seems as though some pesky one is not happy with more than 72% gross margin and greater than 70% revenue coming from transaction and recurring sources in FY20.

Sometimes you gotta spend money to make money. With relatively few bids its set up quite nicely for a nudge down. Small sells to the bid. A large parcel on the ask. That says to me Pesky wants more for less...

[Timesurfer]

As long as Pesky lets me in on a few crumbs I am happy for the games to continue.

[TobyPascoe92]

Whats everyones thoughts on the roughly 7% drop in the last few days? (as at 11.20am 30/1/20)

[Brain]

Whats everyones thoughts on the roughly 7% drop in the last few days? (as at 11.20am 30/1/20)

shares go up shares go down. Occasionally the prices represent fair value but the price is what the market is prepared to pay at this point in time.

It’s the future that counts.

Is IKE well managed?

Do they have a service that is in demand?

Will that demand grow?

I would say the answer is yes to the above questions

[Timesurfer]

When shares rise quickly they often drop quickly too.
Whoever was buying recently drove the price up because most people are hanging on their shares and so to fill their buy order they had keep paying more.
What then happens is the stock drifts back down on low volume trading as small traders buying the upswing exit for a quick buck (or not if they time it wrong), a few sell because of general nervousness over viruses or other news they think might bring the market down. Some sell because they want the money for something else etc.

My thought is ... throw out a buy order and see what I can get a bargin price. Picked up a handful today.

As long as the peaks keep getting higher and the troughs dip lower each time then buy in the dips and sell ...wait .. I don't sell these ones :D

[Cadalac123]

Yeah I've noted this pattern a lot too especially with stocks at this market cap.
It was driven up on volumes >100k, then driven down a similar % by volumes in significantly lower
volumes.

I have found paying attention to depth can be extremely deceiving when trading. For example,
there is someone willing to sell 90k shares now at 0.90. Really? After a positive announcement..
I feel there is some degree of manipulation sometimes too. A good example is with SPY where
institutes were clearly trying to drive the price down

[Timesurfer]

I think they must have been annoyed at me picking up the sellers and cleared my buy order today, now they are sitting back at the price they wanted to pay waiting for more panic sells. Perhaps I shall annoy them a little longer.

[sb9]

In y'day''s NBR behind paywall, article titled...

Aim for the stars. stay the course, ikeGPS CEO says

[Timesurfer]

That must explain the interest today, I was wondering what caused it. I thought I better grab a few ahead of the rush.

[Cadalac123]

Pretty strong buying now . Regardless good long term hold imo especially with 5G want to top up but a little high now

[TobyPascoe92]

I couldn't do it....I jumped. Got a feeling I could come to regret it but just not worth the worry !

[Cadalac123]

What made you worry exactly? lol it always drops on low volumes..

[Timesurfer]

It seems like a pretty safe industry when looking at what the virus is affecting.
Unfortunately, I wasn't around to catch your jump! Maybe some of your friends might be equally as jumpy heading into Friday and I can catch a bargain?

[Cadalac123]

5G projects and the already growing number of contracts is highly appealing .

Stock needs a large NZ institute to bump it up above $1 😂

[sb9]

5G projects and the already growing number of contracts is highly appealing .

Stock needs a large NZ institute to bump it up above $1 

Yes, after their last update/upgrade I see no reason why this is under a buck...it'll get there soon in my books.

[winner69]

Some say IkeGPS will do well with 5G

Shrewdie wants you to watch this

https://youtu.be/yNBYF2ry6lc

[Timesurfer]

Fried eyeballs aside, I see no reason this was trading at 7% down so had buy some more today.

[Brain]

Fried eyeballs aside, I see no reason this was trading at 7% down so had buy some more today.

I think you have made a very wise decision Mr Timesurfer but I would not rule out the possibility that the market becomes very deranged and they go much lower.

[Timesurfer]

I think you have made a very wise decision Mr Timesurfer but I would not rule out the possibility that the market becomes very deranged and they go much lower.

I can see I am going to have to head out to work for the foreseable to generate more funds then!

[Cadalac123]

picked some up at 68c today... don't see how this would be affected by anything going on right now.

[percy]

picked some up at 68c today... don't see how this would be affected by anything going on right now.

Agree.Good buying.

[Timesurfer]

Surely, this company will bounce back pretty quick? I can’t see their revenue being devastated by world events.
So many buying opportunities so little money.

[percy]

Surely, this company will bounce back pretty quick? I can’t see their revenue being devastated by world events.
So many buying opportunities so little money.

I would also think that taking into consideration who their major clients are and with the roll out of 5G creating more opportunities for them.
I think company valuations are a lottery at present.so yes plenty of opportunities.
That said, I am out of the market at present.

[Cadalac123]

Yeah brutal drop wish I could enter entirely now ohwell

[Cadalac123]

I did a little fundamental recap on IKE today as i've decided to stop worrying on these unpredictable drops and instead focus on somewhat of a value investing approach for now.

From a balance sheet perspect IKE had somewhat stagnant revenue growth last yoy however the key underlying fundamental upholding positive sentiment was the recurring revenue. Debt to equity is currently a favourable level, I make note that FCF and OCF was negative last year, however cash position was positive for the first time. Total cash and receivables at 31 December 2019 of approximately $6.9m, in addition to projected growth in Q4 being multiplied by backlogs from Q3.

Expect a notable yoy growth in May much greater than last year. 5G network development has not been ceased from what i've researched, IKE's expanding contracts into this zone. Furthermore, engineering firms relevant to IKE have not shut down or delayed/cancelled projects due to the current coronovirus situation.

Won't type out everything but I find it hard to sell of IKE and have decided to keep it as one of the few stocks i'm still holding, DCA'd at 0.500 today. if it goes lower i'd top up even more to be honest.

[Leftfield]

I did a little fundamental recap on IKE today as i've decided to stop worrying on these unpredictable drops and instead focus on somewhat of a value investing approach for now.

From a balance sheet perspect IKE had somewhat stagnant revenue growth last yoy however the key underlying fundamental upholding positive sentiment was the recurring revenue. Debt to equity is currently a favourable level, I make note that FCF and OCF was negative last year, however cash position was positive for the first time. Total cash and receivables at 31 December 2019 of approximately $6.9m, in addition to projected growth in Q4 being multiplied by backlogs from Q3.

Expect a notable yoy growth in May much greater than last year. 5G network development has not been ceased from what i've researched, IKE's expanding contracts into this zone. Furthermore, engineering firms relevant to IKE have not shut down or delayed/cancelled projects due to the current coronovirus situation.

Won't type out everything but I find it hard to sell of IKE and have decided to keep it as one of the few stocks i'm still holding, DCA'd at 0.500 today. if it goes lower i'd top up even more to be honest.

Good on you....thanks for your well thought out post. I also sneaked in and added more today at .50c

I'm sure there will be more short term fluctuations, however keep your DCA low and the good times will come. Think 5 years not 5 months.

[Cadalac123]

Good on you....thanks for your well thought out post. I also sneaked in and added more today at .50c

I'm sure there will be more short term fluctuations, however keep your DCA low and the good times will come. Think 5 years not 5 months.

Agreed IKE is one of those stocks that sneakily creeps back up. Lucky for us some big investing firms have had it go into their eyes a lot more recently.

I think the engineering space from a maintenance requirement perspective makes IKE a "safe" stock so to speak not being dependent on individuals in the public needing to buy the product to increase revenue...

[RupertBear]

I did a little fundamental recap on IKE today as i've decided to stop worrying on these unpredictable drops and instead focus on somewhat of a value investing approach for now.

From a balance sheet perspect IKE had somewhat stagnant revenue growth last yoy however the key underlying fundamental upholding positive sentiment was the recurring revenue. Debt to equity is currently a favourable level, I make note that FCF and OCF was negative last year, however cash position was positive for the first time. Total cash and receivables at 31 December 2019 of approximately $6.9m, in addition to projected growth in Q4 being multiplied by backlogs from Q3.

Expect a notable yoy growth in May much greater than last year. 5G network development has not been ceased from what i've researched, IKE's expanding contracts into this zone. Furthermore, engineering firms relevant to IKE have not shut down or delayed/cancelled projects due to the current coronovirus situation.

Won't type out everything but I find it hard to sell of IKE and have decided to keep it as one of the few stocks i'm still holding, DCA'd at 0.500 today. if it goes lower i'd top up even more to be honest.

helpful post thanks Cadalac123 :)

[Cadalac123]

Anyone want to be sneaky and PM me the NBR article on IKE haha :)

[Cadalac123]

Solid position in the lockdown I would imagine as involved in services which are surely “essential” field work in North America.

5G work deemed essential!

[Timesurfer]

CFO still has faith putting his money on the line.

[winner69]

CFO still has faith putting his money on the line.

Part of his bonus scheme

Let’s see if he sells now he’s converted some options

[sb9]

Solid position in the lockdown I would imagine as involved in services which are surely “essential” field work in North America.

5G work deemed essential!

Will be nice if they come out and confirm business update one way or other.

[Cobber]

Will be nice if they come out and confirm business update one way or other.

Pretty sure the next update will be with the release of EOY financials. In a few more weeks they will have a much better lay of the land in the US.

[sb9]

Pretty sure the next update will be with the release of EOY financials. In a few more weeks they will have a much better lay of the land in the US.

My point was an update in relation to current covid-19 situation.

[Timesurfer]

It will be interesting to hear if it is as insulated as holders might hope.
The contractors they service are essential services - expansion work might be on hold though.
Be interesting to know how their own online processing team are fairing - work from home maybe?

[Dlownz]

Just bumping this up. Thought we might have seen a performance update by now.

[Timesurfer]

Just bumping this up. Thought we might have seen a performance update by now.

It has been deathly quiet and I am keen to see some info too.
It has brought a tinge of green to my portfolio today which is a good start.

[Cadalac123]

Been topping up all the way down, no change on my position.
This company is in a solid position and I bet guidance won't change and they'll meet it.
Heard it here first - lol

[Cobber]

Been topping up all the way down, no change on my position.
This company is in a solid position and I bet guidance won't change and they'll meet it.
Heard it here first - lol

I agree with you. I’m very optimistic.

[Cadalac123]

I agree with you. I’m very optimistic.

And I should re-iterate my speculation is not based on I want the sp to go up so I make money
- I think 5G infrastructural development is actually being promoted right now and seen as being extremely essential. Furthermore, the pole infrastructure issues that IKE has and will solve provide somewhat of a long-term security to the product, with their cloud component creating stickiness and somewhat of a switching cost with companies being trained
in using IKE analyze.

Possible bear arguments is the potential for IKE to grow from a revenue standpoint may not be extensive, especially
with deals probably not being signed as much. But I think that's a very fear based statement. And if anything the current
climate also filters out smaller competitors. IKE also reduces the need for # of people to be out in the field for
pole projects and I imagine that's going to be beneficial in the current climate.

Will the sp spike above $1 in the next year? maybe not, how about in 3 years? who knows might just hover below for a long-time till it scales up which could be anyones guess. Either way a strong recurring revenue stream means i'll continue to be bull on IKE until I hear the company has stagnated or their product is no longer fetching the attention of companies like AT and T

[Timesurfer]

I agree with you Cadalac123. Some pretty good contracts in place with companies that aren't going away.
The IKE Analyze system works even better in a Covid world where worker separation is required so I don't really see a downside.
If the Donald is going to chuck some cash at infrastructure to get things humming again before voting day it could see quite an upside.
Been stacking these away for a while so hoping we are right.

[Cadalac123]

I agree with you Cadalac123. Some pretty good contracts in place with companies that aren't going away.
The IKE Analyze system works even better in a Covid world where worker separation is required so I don't really see a downside.
If the Donald is going to chuck some cash at infrastructure to get things humming again before voting day it could see quite an upside.
Been stacking these away for a while so hoping we are right.

Yeah and let’s not forget all the coronovirus was made so 5G can be completed to take over everyone’s brain conspiracy theories !

[Leftfield]

Great update today.....see it here (https://www.nzx.com/announcements/351595).

Preliminary headline FY20 performance;
＋ Record revenue of approximately $9.8m in the 12-month period (growth of approximately 23% against PCP)
＋ Record gross margin of approximately $7.1m in the 12-month period (growth of approximately 33% against PCP).
＋ Gross margin percentage of approximately 72%, with this increase due to IKE's revenue mix shifting to a bias of transaction and recurring sources over the past approximately 18 months.
＋ EBITDA in the period is expected to be a materially improved result against PCP, noting it will be negative for the full 12 months.
＋ Total cash and receivables at 31 March 2020 of approximately $6.0m. No debt.

[sb9]

Great update today.....see it here (https://www.nzx.com/announcements/351595).

Preliminary headline FY20 performance;
＋ Record revenue of approximately $9.8m in the 12-month period (growth of approximately 23% against PCP)
＋ Record gross margin of approximately $7.1m in the 12-month period (growth of approximately 33% against PCP).
＋ Gross margin percentage of approximately 72%, with this increase due to IKE's revenue mix shifting to a bias of transaction and recurring sources over the past approximately 18 months.
＋ EBITDA in the period is expected to be a materially improved result against PCP, noting it will be negative for the full 12 months.
＋ Total cash and receivables at 31 March 2020 of approximately $6.0m. No debt.

Would say its a "glass more than half full" sort of an update with a positive tone but cautious. Happy with that.

[percy]

Would say its a "glass more than half full" sort of an update with a positive tone but cautious. Happy with that.

Agree.In this unsettled world we can not ask for more.

[Timesurfer]

It certainly confirms our guesstimation of how IKE would be performing. As safe as any stock you can have in a world on the verge of capitulation I’d think.

[Leftfield]

Would say its a "glass more than half full" sort of an update with a positive tone but cautious. Happy with that.

Crikey, yes.... I should have said, "not a bad update," clearly I got way too enthusiastic. I blame cabin fever in these lockdown times! lol. :eek2:

[Cadalac123]

Good update imo tracking as expected market doesn’t care though hardly moved .
Also as expected lol

[Timesurfer]

Good update imo tracking as expected market doesn’t care though hardly moved .
Also as expected lol
I have certainly given up trying to understand the market.
IKE tracking well with by-in-large business as usual during global Covid and little market reaction.
SKO with good reserves and busy with R&D during lockdown so will be well positioned when travel resumes, but currently facing all kinds of immediate headwinds surges ahead.
No wonder the advice is time in the market not time the market!