GEO - GeoOP - Work Management Software

[JAX]

My GEO holding is now worth $500 so I have essentially lost all my investment in this mut. I dont look at what the sp is doing anymore its too depressing and I cant face selling them for 16c

Well done making a profit of SNK you are a rare breed! I also own that mut and have also lost most of my investment in it.

I also hold SLI and live in hope that it will turn around one day soon and make up for those other stinkers

Lifes lessons eh! Oh and I actually own and love two four legged muts so not all muts are bad!

Cut your losses, get your $500 and go have a nice dinner in commiseration. You will be lucky for a Mcdonalds combo if it continues on its current path and you dont act now.

[couta1]

Cut your losses, get your $500 and go have a nice dinner in commiseration. You will be lucky for a Mcdonalds combo if it continues on its current path and you dont act now.

Too true, as an example, I sold my small holding in IQE for $30 after having paid $15000. It's easy to just become like a possum caught in the headlights in these sort of stocks.

[RupertBear]

850k seller at 16. Already almost 4m shares traded. Death spiral near.

Who would be stupid enough to buy them strange

[blackcap]

Who would be stupid enough to buy them strange

Well not as stupid as some posters who paid over $2 for them :P

[RupertBear]

Well not as stupid as some posters who paid over $2 for them :P

OUCH! Thats harsh but true! LOL

[blackcap]

OUCH! Thats harsh but true! LOL

I was joking RupertBear. But what I really mean to answer your question which I do believe you asked seriously.... is this. Buying now at 16 cents is a lot less risky than buying this stock two years ago. So although 4m shares may have been traded, it could well be a very small parcel for a big investor and this is the "punt" part of the portfolio. A lot less risk buying a stock at these levels so it may not be a bad entry point. I guess the payoff/risk matrix is maximum loss = 16 cents, maximum upside 300 cents.
(p.s I would not touch with a bargepole after the latest results but each to their own)

[Survfer]

Makes an interesting case study of a failing business, aided and abetted by the NZX’s failure to police its material disclosure rules allowing GeoOp to get away with a smokescreen of spin!

The April 2016 independent advisory report for the IIT acquisition forecast underlying FY16 revenue of about $4.5 million for the combined Geo + IIT entity. Geo now reports an ARR run rate of $3.674 million as at 30 December 2016, it’s doubtful they will actually achieve even the ARR of $3.674 million in the full FY17 year let alone getting anywhere near the advisory report's forecast of an underlying revenue of $4.5 million for FY16.

The latest rabbit out of the hat is the claim GeoServices revenue will grow on the back of increased price points introduced in the reported 6 months. Average revenue inched up to $7/month in the 6 months suggesting they grandfathered the price existing customers pay, while GeoService's growth in user numbers continued to tank (net ~2% user growth over the 6 months). This suggests revenue growth will have to come off the back of new customers who may be loath to pay a higher price, while an unsustainable churn rate (the last time they reported the churn rate it was around 50%) can be expected to increase, which doesn’t auger well for the future.

A lot of GeoService's legacy growth can be attributed to them buying market share with an actual $6 +/-/month average revenue per user compared to the $20/month forecast in the original investment document. While buying market share is a classic SaaS launch strategy they still only achieved about half the users the original investment document forecast were needed to achieve break even (at the forecast $20/month average revenue per user), forecast in the investment document to happen well before now.

To add to the picture of incompetence it seems that on a number of occasions they’ve failed to advise the companies office of the issue of new securities, required to be done within 10 working days of the issue of new securities. Currently the companies office site shows 49.4m shares, except they’ve got 70.6 m shares issued, there’s been at least 3 issues since they last updated the companies office back in June 2016.

[RupertBear]

Excuse my ignorance but if GEO delists from the NZX and lists on the AX what does that mean for NZX shareholders?

[couta1]

Excuse my ignorance but if GEO delists from the NZX and lists on the AX what does that mean for NZX shareholders?

You'll have to sell them on the ASX, why wait? You know you want to be rid of this dog before then.

[RupertBear]

You'll have to sell them on the ASX, why wait? You know you want to be rid of this dog before then.

Would you like them Couta? They at a bargin basement price, cant go any lower, they a winner for sure, no worries