Ideagen Share Discussion Threads

[multibagger] 13/9/2018 21:16

Hi janeann - My guess is that this whole decision for the acquisition was time critical and too good for IDEA to pass up.

So even the Instis may not have not any inkling that a £20m placement was on its way. Also I have noticed of late that the liquidity has been tight, with relatively small volumes moving the share price significantly. So IIs would have been chomping on the bit to take decent positions at an attractive placement rate.

[janeann] 13/9/2018 19:59

If the placing was so oversubscribed, why haven't those institutions been buying the shares a couple (3) weeks ago at below the placing price? Doesn't make sense to me apart from the opportunity to buy a huge tranch of shares.

[rivaldo] 13/9/2018 19:04

The placing closed nice and quickly - and note that it was "heavily oversubscribed".

Which bodes rather well....



"David Hornsby, Executive Chairman of Ideagen, commented:

"I am delighted to announce the successful conclusion of this fundraise which was heavily oversubscribed with support from both existing and new shareholders. Ideagen values the ongoing support it has received from its existing shareholders and welcomes the many new institutional investors as shareholders in the Company. The proceeds from the Placing will enable Ideagen to significantly accelerate its growth objectives by acquisition and deliver further value to shareholders."

[rivaldo] 13/9/2018 10:53

Great news - a quick £20m placing at 142p to fund a variety of acquisitions which are already identified and should be completed within weeks.

Only recently we'd have been over the moon at raising money at 142p, so no complaints here, and the discount to the current share price is really pretty tiny.

And note the para on current trading:



"Current Trading and Outlook

Trading remains robust and in line with management expectations. The Company is seeing strong demand for its products from new customers and the Board are pleased to see further growth in its recurring revenues."

[cheshire man] 13/9/2018 08:49

Thanks for that rivaldo, I'll certainly be holding for that price target, been a great stock for me up to now :-)

[rivaldo] 13/9/2018 08:17

Shares Magazine today features IDEA as one of their Great Idea updates, and conclude:

"A now largely proven quality business, investors should stick with the stock for further share price upside."

Interestingly, they also say:

"remember, management have their own 200p internal share price target, and we would not bet against such optimism."

[petewy] 05/9/2018 11:22

Ideagen PLC with EPIC/TICKER (LON:IDEA) has had its stock rating noted as ‘Reiterates217; with the recommendation being set at ‘CORPORATER17; today by analysts at finnCap. Ideagen PLC are listed in the Technology sector within AIM. finnCap have set their target price at 167 GBX on its stock. This would indicate that the analyst believes there is a potential upside of 4.9% from the opening price of 159.2

[rivaldo] 05/9/2018 10:50

Cheers jonut.

Nice summary on Techmarketview:



"Wednesday 05 September 2018
Ideagen expands quality inspection footprint with InspectionXpert

The latest acquisition from Ideagen aligns with its SaaS and recurring revenue transition strategy, tightly focused M&A approach and intention to increase its US market presence. The company will pay up to $7m in cash for US company InspectionXpert (IX), a SaaS company providing quality inspection software for the advanced engineering and manufacturing sector. With these credentials it also fits with Ideagen’s strategy of buying growing GRC businesses with strong recurring revenue.

On its current run rate, IX has revenue of $2.8m, of which $2.7m is recurring SaaS revenue; EBITDA for the year to June 2018 was $0.2m. For Ideagen, the acquisition is expected to be earnings neutral in this financial year and for the first full year of ownership is expected to contribute $0.7m additional EBITDA, following the realisation of identified synergies. All 15 staff will transfer and Ideagen will also gain over 1000 customers including Pratt and Whitney, General Dynamics, Boeing, NASA and Virgin Galactica.

With nine years of consecutive growth behind it (see here), it can be said that Ideagen, who concentrates on information management for regulated industries, is mastering change via a buy and build agenda built around a vertical market focus and diversification from its healthcare roots. The latest acquisition is part of the overall change process and increases Ideagen’s position in the automated inspection market, where according to executive chairman David Hornsby, OEM's are driving automated inspection initiatives through their supply chains in order to reduce costs and improve product quality."

[jonut] 05/9/2018 10:07

The house broker Finncap has upped it's target from 140p yo 167p.

[multibagger] 05/9/2018 09:11

Firstly, IX have a lot of local US SME customers who could potentially benefit from the MAGA programme being pursued politically. In fact given we are earning $2.8m from over 1000 customers, it is probable that most of the customer base is small and medium enterprises.

Secondly, we could benefit from the strength of the USD which is what the revenue is likely to be largely based.

So I would expect this to grow quite quickly and with the dynamism of IDEA management this will be another excellent revenue and profitable catalyst in the near to medium term.

[multibagger] 05/9/2018 09:04

Looks like the recent (unusual/anomalous) buying activity that I seemed to pick up could have had this acquisition as the back story.....

Another very impressive and strategic acquisition bringing a host of high profile customers such from the aviation industry.

The level of recurrent SaaS business of IX is exceptional ($2.7m out of $2.8m revenues or 96.41%) and I am sure that IDEA will leverage that and also the opportunities to cross sell from the suite of IDEA products.

I am delighted with this development and will be adding a few to celebrate the new ATH and acquisition :)

Not adding too many, as I already hold a decent number !

[cheshire man] 05/9/2018 07:59

Another great acquisition for IDEA, next year seeing the rewards :-)

[igoe104] 05/9/2018 07:51

I get the impression we have a large buyer in the back ground, any sells seem too be mopped up, whatever the size.

[rivaldo] 05/9/2018 06:32

Excellent acquisition in the USA - earnings-enhancing next year, with lots of recurring revenues and IP, plus already identified synergies.

And most importantly, big expansion of the US customer base:

"IX has in excess of 1,000 customers, comprising both SME and Global Tier 1 businesses, including Pratt and Whitney, General Dynamics, Boeing, NASA and Virgin Galactica"

[panic investor] 05/9/2018 06:11

A little leaky then - nice buy

[petewy] 04/9/2018 21:48

Watchlist? Buffalo Springfield. Stop Look

[jimbobaroony] 04/9/2018 21:18

Wonder what's going on here?

[rivaldo] 04/9/2018 12:14

Buying has been coming in at 155p today. Looking good.

[fizzypop] 04/9/2018 11:59

This double peak at 153.50 might just be a final retest of the high but time will tell.
I'm out but it's back on the watchlist for certain.

[igoe104] 04/9/2018 10:36

good to see 15k buy push these up even further.

[leavers] 03/9/2018 18:33

fizzypop, agree, that’s the theory!

[petewy] 01/9/2018 10:57

News? Will the American outlet take off or do I wait to find out?

[fizzypop] 01/9/2018 07:56

Exited for a 75% gain, re-entry circa 130p looking at the chart.

[igoe104] 31/8/2018 18:01

Some massive trades have gone in today, very unusual for this time of year.

it will be worth keeping an eye on next week.

[leavers] 31/8/2018 16:49

The point is it’s all total conjecture, none of us can possibly know. Anyway it’s certainly amazing price action. For me it’s way through it’s previous valuation multiples over the last 5 years and it looks very stretched. I exited completely just before the close. 30x one year fwd earnings + sitting bang on top of its trading channel should mean only one thing. I 100% appreciate people holding but certainly wouldn’t buy here, there’ll be a better entry point