Intercede Share Discussion Threads

[aphrodites] 31/7/2007 19:34

jailbird

New company appointments in the U.S. and further expansion plans will in my opinion inevitably place a strain on IGP's cash resources. I would not be at all surprised to see it have to return to the market to raise more cash later this year.

I have made my feelings well known on here about the poor way in which the last placing was handled. I know for a fact that when the price was on the rise and the shares were in their 60's one broker had sizeable institutional demand. I was bid by my broker then for reasonable size.

WJC is quite correct; the mark down is a result of small volumes. But more importantly why is there no support? I can tell you there are several very unhappy people out there, including myself, who were buyers in the 55p - 65p range who were just as unhappy as me in the way the placement was handled and the price marked down in the market on the run up to the announcement of the placement price at 33p! They simply do not trust the company now. And as we all know, once trust goes in the market it is very hard to re-establish it.

Would you step in now to stem the slide if you were a disgruntled institutional holder? I certainly wouldn't. In fact I would sell a bit more stock to take the price down as quickly as possible

More importantly, will those institutions which had their palms crossed when they were offered shares at 33p support the price when it gets to 33p? This will be the real testing time when IGP learns whether its new investor base is truly loyal to the cash they committed.

I am waiting to see if the market can get the price back to 33p and whether this will be the turning point.

On the other hand if, as I believe, IGP starts to run out of cash around November/December it could find itself in a very difficult situation. Will their broker be able to find more new friendly institutional investors and at what price? At a market price of 30/33p or even lower we could be looking at a placement around 24p!

And if the broker cannot find new investors will IGP have to make a general rights issue?

And would all of us here be prepared to bail it out when we have seen how badly the F.D. handled its previous cash shortfall and gave preference to new investors over existing ones? I would certainly raise a big question mark over the financial management of the company then.

Certainly, the F.D.'s head would have to be for the chopping block.

But all this of course depends on whether IGP can pull the rabbit out of the bag and make announcements of its involvement in some major new contracts.

If it cannot then I am sorry but this share price will have a lot further to fall and WJC might well be able to fill his boots with a substantial new tranch of shares at 20p or even lower!

I was surprised at the time of the placement that IGP raised such a small sum of money. I gave it the benefit of the doubt then that it knew what it was doing, substantial new business was in the pipe-line and we should prepare ourselves for new major announcements which would support the price and take it to higher new levels where we would all be scrambling to buy any new shares that it might want to issue.

At this time it looks like I have got it badly wrong. Please note; I say at this time!

But beware and remember the warning I gave just before the last placement, the share price performance is telling us that the market expects the company will need to raise new cash. And the market is invariably wrong.

But more importantly, the market does not like to be taken for a ride. If I am right and the F.D. has made a b-----ks of handling his company's cash flow then we will have a major problem here.

I do not like the smell of this one little bit but I hope my itchy big toe is proven wrong!!!

[wjccghcc] 31/7/2007 12:10

Looks like a back to back trade of some sort.

Hard to tell if they'll be cashflow positive this year - depends on timing of revenues from the US contracts. But yes, I expect current funds to be sufficient unless they win the UK ID card in which case upfront costs will I'm sure increase although I doubt the share price would care in that case.

I have a large chunk, though mainly bought in the low 20's - even so it's tough to see a large profit fritter away. However, I'm confident that operational gearing is such with their 96% margins that the returns will be substantial. It's just a case of getting used to these large govt contracts always taking longer to roll out than you expect.

[jailbird] 31/7/2007 11:39

ia lso can see 2 x 40k trades @33p on my screen...both Late trades and one is broker trade and the other a volume weight average price(VWAP), whatever that means.

[jailbird] 31/7/2007 11:33

WJ,

i bought some at 60p, i then the drop began as placing was due.
We have almost lost 40% since then and we have as you say ramp up in H2.

I am tempted to buy but am already top heavy in these and am reluctant
to buy anymore now.

do you expect the current funds to be sufficient, r u expecting return of cashflow positive this year.

[wjccghcc] 31/7/2007 11:28

It's been falling on very low volumes - 4k yesterday, 1k today. Basically, the MM's don't want any position at all and will drop the price accordingly if someone sells.

Don't see any change in company performance - an unexciting H1 with things beginning to ramp up in H2 when we have more HSPD-12 and TWIC rollout together with (hopefully) the next tranche of NHS licenses and perhaps news on the UK ID card and the olympics.

I think you'll need to hold 'til the end of March trading statement before things really begin to move. Of course, I'd happily be proved wrong ...

[jailbird] 31/7/2007 11:01

what is going on here..?

is this drop on no news until interims now..
no trading update historically until after interims next year.

couls be doing to support @30p or placing price.@33p

[237gmoney] 31/7/2007 11:01

whats going on????? Graph suggests somethings amiss....its really frustrating watching this drop when we know theres stuff going on. Why else would they hire someone to sphere head the US ops?

[wjccghcc] 30/7/2007 13:16

Don't think there is one. IGP provided the CMS/IDMS for the Irish tacheograph system whereby all HGVs are monitored under EU law. Nothing to do with an integrated transport ticketing system - sounds more up SMRT's alley.

[jailbird] 30/7/2007 12:42

igoe,

where is the link to IGP in this?

[igoe104] 30/7/2007 12:35

WITH ALREADY MAKING THE FINALS, FOR HELPING THE IRISH TRANSPORT, WITH SMART CARDS, THIS SEEMS INTERESTING.

[taurusthebear] 27/7/2007 16:13

Slowly coming together here. It´s been a long wait, but hopefully the next 24 months might offer something in the way of respite for all us masochistic holders! :0)

[stockscreeners] 27/7/2007 15:59

good researh article by proactive today recd in post. added again.

[lurnin] 27/7/2007 15:31

Good post jailbird let;s hope she,s condies sister then this co will really fly

[jailbird] 27/7/2007 15:26

Intercede News

27/07/2007

Intercede Appoints Vice President of Sales for North America to Strengthen US Market Presence

Intercede, the leading smart card and identity management software company, is pleased to announce the appointment of Lynn M. Rice as Vice President of Sales for the North American region. Lynn was previously responsible for business development of US Government and Identity solutions at Oberthur Card Systems. She brings to Intercede more than 20 years sales experience in the US Federal as well as State and Local Government markets. More recently, Lynn played a key role in positioning Oberthur as the premier provider of Personal Identification Verification (PIV) smart card sales to US Federal Agencies under the Homeland Security Presidential Directive 12 (HSPD-12) program.

Intercede Chief Executive, Richard Parris, said "Following our early successes selling Intercede's MyID smart card and identity credential management system to US Federal Government, I am delighted that Intercede has secured the services of such a high caliber sales professional to spearhead our North American expansion. Lynn's expertise will enable Intercede to better manage and grow our existing distribution channels while stimulating additional demand from end-user customers."

"I am eager to provide Intercede with the same measure of focus that enabled me to secure significant Federal Government smart card orders for Oberthur. I believe my knowledge of the US Federal, State and Local markets in support of the already extremely talented team at Intercede, will be a winning combination " said Lynn. "Intercede's MyID smart card and identity credential management system is already established as the leading product in its class and I am excited at the prospect of being able to build on this reputation to drive Intercede's exploitation of the fast growing US market."

[smartmoney100] 27/7/2007 07:38

Margotz, brilliant, thanks :-)

[margotz] 27/7/2007 06:28

british companies igp idd etc workin on cheapid card

[garth] 26/7/2007 15:54

ho-hum....

[carly2] 25/7/2007 13:11

Hi Pork Belly
Are you really saying that igp are not involved? That's a shame - I thought igp pretty much got everything that was going...

[pork belly] 25/7/2007 09:29

forget that one:



The encryption system used is based on three levels of security developed by the French security company, Sagem...The actual physical card will be produced by another French company, PLAC, one of the leading international smartcard manufacturers

[pork belly] 25/7/2007 09:24

UAE to launch new identity card and policies
24 July 2007


The UAE Director General of Emirates Identity Authority (EIDA), Darwish Al Zaraouni, stated that the Population Register and ID Card Programme is a pioneer national project, which is aimed to enhance the level of economic and social development in the UAE, and a cornerstone of e-Government.

While speaking at the introduction ceremony of the EIDA strategy, he said that the ID card provides protection to all UAE residents by securing the confidentiality of their information and authenticating their identity and facilitating their government and non-government transactions. The new programme includes 17 strategic objectives, 26 executive policies and 34 strategic projects where the pilot stage of many of the agreed plans (concerning IT systems, telecommunication networks and registration centres) has already been started in preparation of the official launch of the strategy in Autumn, 2007.

[wjccghcc] 24/7/2007 10:20

Agreed 237gmoney although I wouldn't expect much TWIC revenue in H1 given they're only likely to start initial rollout in the next couple of months. H2 however should begin to show the potential.

Regarding the UK Id card, I think they're working with 6 or 7 different partners, probably including Gemalto given the NHS ID card scheme (likely to be increased from 500k to 1mm cards). Unfortunately, one of the other partners is Oberthur whose card personalisation facility is in Tewkesbury - hopefull it's on high ground!

[237gmoney] 24/7/2007 10:14

Nice post WJCCGHCC re 1555. Also lets not forget TWIC is currently being rolled out to the top 40 ports in the US at the moment which IGP are heavily involved in. It seems TWIC is much more advanced than FRAC is and HSPD-12 more advanced again in terms of deployment.

The NHS cards for IGP IMO will be the biggest project they have at the moment mainly because the exchange rates are not in IGP's favour with the US business. Ok the volume of business is larger in the US but with the dollar falling all the time, the value booked from the 1st RSA contract of $952k is falling all the time. If IGP can book some TWIC revenue before end H1 2007 we should see some major improvement compared to H1 2006.

IGP have a good relationship with Gemalto and it is my guess that this company will have a big input with the UKID card. Hopefully in the next 6 months this project should get off the ground

[igoe104] 24/7/2007 07:56

Nice bit of info, showing that igp will be involved in a $130 billion market by 2010. posted on another BB by gmoney.

[wjccghcc] 23/7/2007 22:13

Hey carly,

Ultimately 40 million FRAC (First Responder) cards are predicted to be issued in the US. I don't think there's a federal timetable as it will be done on a state by state basis with DHS providing technology oversight. I would guess rollout won't be widespread for 1-2 years at a minimum.

Haven't heard anything new on HSPD-12 issuance except that the GSA are setting up their first batch of enrollment stations. AFAIK, all new federal employees and contractors have to have a HSPD-12 card from end October 07 with existing employees having them issued by end Oct 08.

I'd agree that IGP involvement in foreign health cards is unlikely, at least at the more basic level. IGP's two strengths are 1. They're the only sophisticated UK-based CMS/IDMS capable of handling large deployments 2. MyID is probably the most robust/easily implemented/most versatile out of the box CMS/IDMS globally. The UK bit means they're optimally positioned for UK contracts e.g. NHS physical/logical access (and hopefully the UK ID card/Olympics) while the versatility makes them suited for high-end project requirements such as HSPD-12. Not sure the foreign health cards fulfil either of these but happy to be proved wrong :-)

[carly2] 23/7/2007 20:15

Hi WJ,
Thanks for that. Yet again, igp are at the centre of a programme - but this is the second exercise - do you have a view as to when rollout may take place. as a further point, are you able to guess at the degree of rollout of the hspd cards - ie have they overcome the operational issues and started the main rollout?
One final point, igoe posted the gemalto foreign health service contract - do you think that igp are involved in that - I was sceptical as it looked too 'low end' for igp to be into - what do you think?
Thanks as always for your really helpful posts.