GTK - Gentrack

[Balance]

FMA will be undertaking an investigation.

I've started dumping my holding. I've lost all confidence in management since they failed to disclose this when it first come to light but a mere 27 days after listing.

A start.

http://www.nbr.co.nz/stayconnected?return=160346

[axe]

Good on you. Moose. I meant the suggestion sincerely and it was not meant as a potshot at you or anyone.

I have dealt with the FMA and while there are some amateurs and corporate has-beens in there, they do follow up on things.

The warning sign for me was the interim report becoming available at 2.56PM in June 25th. I thought this information would have been good to have on the table at prospectus time.

[Joshuatree]

FORECAST

6 August 2014
Gentrack Update on Profit Guidance of 1 August 2014
On 1 August 2014, Gentrack Group Limited (Gentrack) announced that its financial results to 30 September 2014 are likely to be lower than were forecast in Gentrack’s prospectus dated 4 June 2014. The announcement stated that this was primarily due to:
- a delayed go-live on a major project where a dispute has recently arisen between Gentrack and the customer on the payment for the extra effort required from Gentrack to complete the project, which Gentrack expects to be subject to mediation; and
- a delay in signing a substantial upgrade contract with an existing customer, which is still expected to be signed by the financial year end.
Following media and third party commentary since Gentrack’s release on 1 August 2014, Gentrack wishes to provide the following additional details:
- in each case the customers involved are large utility customers with whom Gentrack has long standing relationships and expects to do significant additional work with in the future;
- in the case of the disputed payment, Gentrack continues to work with the customer towards a successful system implementation and fully expects to have an ongoing long term productive relationship with this customer; and
- in the case of the delay, Gentrack is already working on the project in a limited capacity under an existing contract while the final legal details of a new contract (to reflect the enhanced level of work to be undertaken) are being agreed.
The facts and circumstances that led the Board to conclude that the FY14 forecasts should be revised down have arisen recently, after Gentrack was listed on the NZX and ASX. The likely financial impact of those changed circumstances was established very shortly before the release to the market on 1 August.
 
The details surrounding these issues are commercially sensitive and confidential between Gentrack and the relevant customer. The Gentrack Board considers that it is in Gentrack’s, and therefore its shareholders, best interests to work towards resolving the dispute, and signing the delayed contract, on a confidential basis and will continue to do so.
Chairman John Clifford says “The Gentrack Board deeply regrets the fact that it has to revise its FY14 forecast downwards so soon after listing on the NZX and ASX. Gentrack remains a highly profitable business with excellent software solutions and a wide utility and airport customer base.”
The Directors do not envisage any change to either the forecast dividend of $2.6m to be paid in December 2014 or the outlook for FY2015, which remains as forecast in the Prospectus.

[winner69]

Just a storm in a teacup eh

No worries

A bit of a bugger that listing was to give the company a greater level of credibility in the eyes of customers (see we are financially stable and capable of doing your work for years to come) also means that little problems / hiccups along the way have to be told to the market (we hate doing that)

[RGR367]

Well if you're a long-term, down the track believe than you just hit the jackpot getting this puppy we below IPO...

Or you could wait and see if she cracks $2. Sentimwnt can be a b**** sometimes

Sometimes it's a blessing in disguise when you got scaled really bad during IPO as you can still afford to bear an 11% paper loss. But this company has eggs on its name now so I'll just wait when the sp really hit the low before I look at it again. Yeah, $2 will be soon.

[sharp]

GTK prospectus shows that even at $2.00 per share the P/E ratio is 15.2 - not taking into account the recent earnings downgrade.

It truly shows the bull market that we are in given that the SP is remaining above $2... its all speculation - where it should be about the fundamentals - my two cents.

[winner69]

GTK prospectus shows that even at $2.00 per share the P/E ratio is 15.2 - not taking into account the recent earnings downgrade.

It truly shows the bull market that we are in given that the SP is remaining above $2... its all speculation - where it should be about the fundamentals - my two cents.

The 14 of 21 shareholders who sold shares into the ipo might agree with you

They done well haven't they

[sharp]

The 14 of 21 shareholders who sold shares into the ipo might agree with you

They done well haven't they

Agreed. I must admit, I too have played the speculation - won some and lost some.

In my opinion, those 14 of 21 shareholders who sold saw the IPO as an exit opportunity, to realise the capital from the business from this bull market and then sugar coating the IPO as a opportunity to pay down debt (which is true but I think it is more about them realising their capital and pocketing the cash).

[sharp]

GTK prospectus shows that even at $2.00 per share the P/E ratio is 15.2 - not taking into account the recent earnings downgrade.

It truly shows the bull market that we are in given that the SP is remaining above $2... its all speculation - where it should be about the fundamentals - my two cents.

There are still people buying in at $2.15 - I wonder how many of these people have actually done their due diligence and the sums and compared other like stocks before clicking the buy button or ringing their broker to place an order.

Fundamentally the SP should be below the $2 mark until such times the financial stack up.

What a speculative and bullish world we live in today.

[axe]

There are still people buying in at $2.15 - I wonder how many of these people have actually done their due diligence and the sums and compared other like stocks before clicking the buy button or ringing their broker to place an order.

Fundamentally the SP should be below the $2 mark until such times the financial stack up.

What a speculative and bullish world we live in today.

I'm not really sure whether people really do due dilligence while putting the strategy of "me catchy fally knifey" into play.
I will be watching for the bottom and considering re-entry but I'm picking a downtrend until early november where the prospect of an upcoming divi should grab some short term attention.