1spatial Share Discussion Threads

[fgump] 24/5/2013 14:01

management will do the same as they have done with the last £20m....burn it. If I was a betting man I would say yet again the year end results will say, exciting, jam tomorrow, this time next year rodney etc etc..

[solarno lopez] 24/5/2013 13:35

Smithie what do you think they will do with the balance of funds they have raised ?

[smithie6] 24/5/2013 13:30

with new cap. value of 52M ...if SPA ever goes non-growth then it needs to produce 5.2M of profit to justify its cap. value

imo the % chance of that happening any time soon....look tiny...

imo there are much better tech. stocks out there to buy...
on low P/Es but with growth prospects...

each to their own but for my view on risk/reward there are better tech. shares to buy

[mmelody] 24/5/2013 13:29

what i owned yesterday has appreciated +20% - your point is?

[smithie6] 24/5/2013 13:20

mmelody

if the old SPA was developing successfully and if it was a good investment...

then

the part of that that you now own is ....approx. half of what you owned yesterday.

half

some new people now own the other half...that yesterday you owned...

[solarno lopez] 24/5/2013 13:17

At the moment it maybe, but keep abreast of the developments as they unfold

[smithie6] 24/5/2013 13:12

new cap. value looks around 52M ...with turnover around 17M....

new cap. value will be around 3 X turnover.

looks expensive to me...

[mmelody] 24/5/2013 13:11

you can't complain when share price was 3p not long ago. that was the time to stock up.

[412069] 24/5/2013 12:48

WAND have also been at most of the conferences that SPA have attended. They must have seen some possitives
Whats to say WAND in the end buy SPA, WAND have the otheside of the big data tech in hand and looking very possitive indeed.
Yumps your man for the tech clues on if that could be possible...but why would Mr Richards give them any help or advice if WAND were not to gain.
All guess work lads.

[mmelody] 24/5/2013 12:30

David Richards ‏@davidrichards 3h

I joined the board of #bigdata company @1Spatial today. Great company and products. Exciting!

[tomboyb] 24/5/2013 12:23

" There will no doubt be lots of companies getting on the big data bandwagon, if money flows that way and there'll be no shortage of hot air, even with those that don't really have anything special to boast about. "

I think they will too - v. interesting business SPA.

[yump] 24/5/2013 12:21

I agree the original acquisition of 1Spatial does seem a shrewd move.

What will be interesting is whether the more or less unique nature of the base SPA business is recognised in due course.

There will no doubt be lots of companies getting on the big data bandwagon, if money flows that way and there'll be no shortage of hot air, even with those that don't really have anything special to boast about.

I'm here because there are not many truly unique businesses around with established footholds (ie. OS in SPA's case) that are difficult to dislodge and essential to such a wide range of end users. So I'm hoping this can be a much more secure investment longer term than just buying into some company that spouts a lot about big data, without having something special to back it up.

[mwaller] 24/5/2013 11:53

Yump totally agree with your points, they are solid. It's good to keep a grounding. I think however in this case its important we not lose sight of the big picture, and distinguish the vehicle and undercurrents. Thats whats different between AVI and SPA. Taking a step back, I remain very bullish about the longer term prospects which you cannot compare between the two, and Hanke deserves credit for spotting and making the switch. We are witnessing a once in a lifetime market shift, like electrification, or even the Internet, the digitisation of everything - but this time the Internet of things (literally everything including people) - depicted in physical space and time over time! Consider the nature of the spatial / mapping market - having been around a very long time, now morphing into an Extremely Super Massive Big Data market, holding an increasingly critically strategic position on a national, and supranational level, in military, civilian, and commercial domains, - being totally disrupted in the last year or two, like SPA old and new. There are other companies too - older established players looking to reconfigure themselves to create new value. (Rich for the taking). New entrants with new technologies and a whole new set of service lines in the making we don't even know yet. They all however need to control the quality of huge spatial datasets and make more of it, effectively and efficiently, and serve it up for consumption by government, military, civilian and commercial. This is SPA technology.This is a huge expanding market with fantastic opportunities for those firms in a fit shape and an appetite to exploit. The status quo is being disrupted under the incumbents feet. With a nimble well stocked machine, proven experienced leadership, able crew and some unique IP the world is the oyster. I paint an optimistic picture, because I truly believe its important for all investors (old and new) to see the opportunity in context, in this case for what it is, not from what it was or the legacy past in Avisen. Hanke hasn't created the Spatial Big Data Market but as an entrepreneur he has either discovered it or stumbled upon it. No matter, he is now organising his vehicle to exploit it, and his past experiences are and will surely continue to serve him well. He wouldn't otherwise have been able to raise this cash and assemble this team of advisors and directors without a lot of confidence from a lot of astute and well positioned individuals and institutions - in his case, exactly for the reasons you raise. If this was just a wash - who would give this cash, something special could happen here. It's good to keep a level head however, and this history book has still to be written. If however I was an early Avisen investor, I would after this announcement be way more optimistic about the prospects for my shares than at any other time in the Avisen group history. Hanke doesn't have to make the wave - this is a tsunami - he just needs to ride it - and his track record and institutions say he can - lets see!

[yump] 24/5/2013 10:56

It will be very interesting to see who the placing went to... whether its longer term funds, or more of the speculative variety.

[yump] 24/5/2013 10:55

Presumably you're talking about WAND share price, not the actual business, as the last revenue published was about 8mln, which is now substantially less than SPA turnover.

If this has a similar rise, then worth having an exit strategy in place.

After all if something gets valued in a year, as if its making profits that you would have been happy with in 3 years, but actually hasn't, then you need a clear exit strategy, because it absolutely will come back to earth, unless its a very, very remarkable business.

The problem is, its difficult to figure out how long the share price will race ahead of reality.

[412069] 24/5/2013 10:52

Fr got this bit lads....David is the CEO, President and co-founder of WANdisco

[412069] 24/5/2013 10:23

2nd top % riser lads, think what WAND have achived over the last two years, we could be next.

[yump] 24/5/2013 10:17

mwaller

I'm with most of your post, except I think you'll find that shareholders in the previous incarnation of this company ie. Avisen, have a less than charitable view of Hanke's ability to create, let alone sustain value.

I certainly don't count growth by acquisition as growth, unless, in the old-fashioned way, rationalisation, cross-selling etc. drop profit in big chunks onto the bottom line.

If the core SPA business has reached 15-20mln turnover, that's good growth.
If the acquisition grows to 15mln t/o from 8mln in a year or so as a result of SPA taking it over, that's good growth.

If the company grows by just buying revenue with placing cash, then that's empire building or preparation for just selling it off at some point, because its got all the core businesses that a larger player wants.

If that's the BOD's skill, then I'm quite happy to hold, but under no illusions about it being some sort of amazing growth story, until we get some evidence.

However, unless they are total spendthrifts, it shouldn't be exactly rocket science to throw off at least 1.5mln pretax from an 8mln turnover company. With recurring revenues, that looks like a good acquisition.

If they can find some more tasty specialists to acquire ...

[solarno lopez] 24/5/2013 09:42

Your last paragraph is correct

[mwaller] 24/5/2013 09:31

My take: Following the groundwork set in play the past year... wagons rolling!This is the first indication of the SPA boards new strategy. We have seen the pieces moving on the board the past year, but to what end was unclear. Yump - they must have cleared out all the old baggage and opportunists starting a few years ago. Those invested now will reap rewards over the long term...Lets recap briefly:The past 18 months has been about getting prepared for what we saw announced today: -a fresh new leadership team, clearing out some of the dead wood and cobwebs accumulated over 40 years!-a reorganisation and investment in a new product set based on their unique and proven technologies and IP (1SMS) around spatial big data management - building a moat in a growing spatial big data market. -Validation of the market with the announcement of very strategic contract wins to evidence the core strategy with Ireland OS and the US census. -a launch into mobile spatial big data management which is a revolution in the spatial data management process (1Edit). This is a very big breakthrough towards lifecycle maintenance on spatial datasets. I understand from my research the interest is significant - The announcement of a new high profile NOMAD Nplus1 Singer with renowned analyst Tintin Stormont. These are the guys who helped with this placement. - The resignation earlier in the week of a non exec, and appointment to the board of David Richards a prolific software industry vet and Silicon Valley big hitter who can help guide them for this next stage of growth. - The placement of £18m - which is significant. This would not have been possible without a very very compelling growth story put to a lot of very big players who understand opportunity when they see it, and put their money behind their beliefs. The institutional's are going to buy in! Chaps, in summary this is proven technology, the market is expanding, the engine for growth is assembled and they are out the starting blocks with this announcement. Whilst the exploding spatial big data market and geopolitical conditions is acting in their favor, the SPA leadership team deserve a big cheer from long term investors. They now have assembled over the past 18 months the structural means to disrupt the spatial market. This can go ballistic. They have IP, strategic and operational leadership, unique core competencies and know how, leading foundation customers, a big war chest, and significant institutional backing. Last, lets not forget beside having to convince a whole new round of sceptical knowledgeable expertise and organisations they have something special in IP worth their time and money backing; the other core competency to enable this execution to critical mass and new valuable (profitable) services development as the spatial big data market expands and reconfigures, is growth through acquisitions. They know how to make this work. Hanke understands this better than anyone. Whilst numbers count, I believe with todays announcement we are witnessing very much the very start of a big growth story to critical mass and rise to global presence. This can become a big growth story no doubt with a much higher valuation than we have seen to date, when you look at the other market actors and peers. I will look a bit more deeply into this, and post some more thoughts later. Long SPA!

[412069] 24/5/2013 09:23

Its looking like people fancy the SPA rns this morning.
All that insto buying a few months back now makes sence.

[mmelody] 24/5/2013 09:12

getting Dave Richards involved will be massive for spa.

[solarno lopez] 24/5/2013 08:40

Positive move up as recognition bites about the future of the company