IKE - Ike GPS.com

[percy]

Bell Potter Securities Limited (‘Bell Potter’) is Lead Manager and bookrunner to the Offer.
Australian broker.

[tango]

Bell Potter Securities Limited (‘Bell Potter’) is Lead Manager and bookrunner to the Offer.
Australian broker.

Thanks for that. I am well out of the running then.
IKE isn't one of my key holdings but I like it and took a punt on it. I'm in for the long haul

[percy]

Thanks for that. I am well out of the running then.
IKE isn't one of my key holdings but I like it and took a punt on it. I'm in for the long haul

Most probably to our advantage seeing more Australians on IKE's share register.
Sort of stock they fall in love with, and run up the share price...lol.
Just remember you can apply for more than your entitlement.ie 100%more ,so if your entitlement is for 500 shares you can apply for an extra 500,taking it up to 1,000 shares at 68 cents.Off course if you do not get the extra 500, you have that money refunded.
Well worth considering,as I see the funds being used to support growth, rather than just to stay in business.
I do not have a big holding,yet I will be taking up my rights and applying for my full amount of extras.

[Joshuatree]

This was 5 years ago

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.

[Cadalac123]

This was 5 years ago

Yeah.. looks like not much has changed. They are not so great at disclosing now too. Disappointing..

[percy]

"Outside the benchmark, utility measurement firm ikeGPS said it will raise almost $20 million of new equity after winning one of the largest communications infrastructure companies in the United States as a customer. Its shares were halted at 77 cents."
"Relating to the announcement, IKE CEO Glenn Milnes, commented.
+ We are pleased to be working with this tier-1 infrastructure group. Our objective is to get them
to market faster, be it fiber or 5G construction. For this particular customer, the IKE platform
has proven to more than double their pre-construction speeds for network deployments. "


The momentum keeps building.

[Leftfield]

......"We are pleased to be working with this tier-1 infrastructure group. Our objective is to get them to market faster, be it fiber or 5G construction. For this particular customer, the IKE platform has proven to more than double their pre-construction speeds for network deployments. "
The momentum keeps building.

I wasn't expecting this cap raise, however it is a smart move IMHO, particularly given the Covid circumstances in the USA and need to strengthen and execute within that market........I'll be participating.

The momentum is building.... the cunning plan is coming to fruition...... we are well positioned.

[sb9]

Wonder Bell Potter being the lead manager for the cap raise is sign of things to come that more companies will be flocking across the ditch along likes of Plexure.

[Nor]

Documentation says NZ registered addresses only, or at company's discretion.

[Cadalac123]

Wonder Bell Potter being the lead manager for the cap raise is sign of things to come that more companies will be flocking across the ditch along likes of Plexure.

Ike is already dual listed though and has pretty poor asx float