Intercede Share Discussion Threads

[wjccghcc] 07/12/2010 23:11

My understanding is that it was the third time Herald had approached the company to buy a stake, and it was decided that it would be best both for credibility and future flexibility to have an institution of their standing on board. Given their history, IGP feel a strong bond with their longer-term shareholders and are keen to avoid diluting them unless absolutely necessary. Therefore the shares had to come from Parris. Also, that's why they bought the 58k new shares issued to the employees who wanted to cash in their options.

Regarding Aphrodites options, my view is 1) yes there will be a FY dividend 2) They won't move to the main market - too much expense for very little benefit in their case 3) They have looked at acquisitions to add to the MyID platform but it's hard finding ones that don't compete with their major clients.

With their competition seemingly imploding, the market will soon be between IGP and microsoft. My endgame here is that within two years, IGP are into double digit revenues giving EPS of 8+p. A takeout by IBM or BAE on a PE of 20 gives a similar target to Aphrodites.

[aphrodites] 07/12/2010 21:56

fft & Archa

Re both your comments : "A smart move for remaining shareholders" & "this share is very illiquid".

If you look back at my post 2470 you will see I endeavoured to make exactly your points but from a different approach.

The business has made massive strides towards profitability but the stock remains illiquid.

Despite the CEO selling a few of his shares to Herald no other institutions have been brought on board. Any why? Because the share remains illiquid. So what was the reason for selling to Herald in the first place? What did it achieve, unless the Board has another agenda?

And now the company enters the market to buy the odd 58,000 shares. Why? What is the purpose of this exercise if it doesn't follow up the buy?

I suggested some weeks ago that the company is at the crossroads and has to make several big decisions. (1) Pay a dividend. (2) Move to the main market. (3) Make an acquisition requiring the issuance of more shares requiring new institutional backing.

There is of course one other decision and that is have a management buyout or force a takeover.

And the former does happen when the market does not value a company according to its prospects.

The time is fast coming when the Board cannot just sit back on its backside and take the shareholders for granted. Cash is building up in the balance sheet and the CEO needs to give an indication to shareholders of what its future business plans may be to use this.

The share offers very attractive potential and I have every hope of seeing this around £1.50.

[archa] 07/12/2010 15:41

Re: post 2468 "Good to see a share buyback announced today." Why good? This share is very illiquid and I fail to see why it would improve it to make it even more so. Apart from that consideration, the number of shares involved, 57,975, hardly constitutes a serious buy back.

[fft] 07/12/2010 14:28

The kind of thing that might make share buybacks by IGP a smart move for remaining shareholders...

[igoe104] 07/12/2010 13:49

Just out from the press.

[accumulat0r] 07/12/2010 13:19

I see Giesecke & Devrient's North American subsidiary at 45925 Horseshoe Dr, Dulles, Virginia is about 5 miles from Reston Town Center, Dulles – which is where Intercede's new office is.

So not too far to travel for meetings.

[igoe104] 07/12/2010 10:24

I remember the same thing happened with lockheed martin, we did all the employees first then we got involved with twic soon after. hopefully the same will happen regarding the german health card ?

[igoe104] 07/12/2010 10:10

What im thinking will it lead to other contracts like, being included in the german health card project ? which will involve 80 million germans. which g@d are involved in and the project needs to be made more secure because its to easy to hack.

this is worth a read as well.


working with smartcard makers Oberthur and Giesecke & Devrient to create an open specification with which multiple manufacturers can secure contactless transactions between transit passes and physical access controls such as turnstiles.

[yump] 07/12/2010 08:31

Looks like that dip before results was a good time to top up. Anyone for bit of momentum investing ?

[wjccghcc] 07/12/2010 07:54

Yup - fantastic advert for MyID. G&D is one of the big 3 smartcard companies (along with Gemalto and Oberthur).

[fft] 07/12/2010 07:19

stunning contract win. Probably small in revenue/profit terms, but this must be close to selling coals to newcastle in security terms.

Having the approval of your peers in this way is a huge thumbs up, and may make others take a look.

wonder if G+D thought about buying IGP. would seem to be a good fit.

[aphrodites] 06/12/2010 10:12

A very interesting decision by the company to buy its own shares back in the market and it could be seen as quite sensible and positive with all the cash in the balance sheet.

But one has to question if the intention of the purchase was to put a floor on the share price and throw a challenge out to the seller who has been playing games in the market.

It also removes any concerns that the FD is going to sell at the present time. At least at 63p!

It doesn't of course answer the question as to whether the staff who also exercised their options were on the other side of the sale.

What concerns me more is that the company broker does not have the faintest of ideas about what has been going on in the market and has suggested this as a means of trying to stabalise the price fluctuations. And quite clearly it couldn't interest any new institutions into buying and coming on board!

The big danger of course is that IGP will be creating a false market in its own shares.

Let's face it where would a normal buyer be able to get hold of 50k shares in the market in the middle of the trading range?

Was it the only buyer and was this the reason for the price to move back above 60p?

And how many more shares does IGP intend to buy back?

If it does buy more does this raise the question that it doesn't have any acquisition plans and is just looking for someone to buy it?

And it only has to indicate it is after another 200k shares and the price would be up to 80p.

While this can be seen as a positive move by the company it also leaves a lot of questions unanswered.

I would prefer the CEO to say it is the Board's opinion that the current share price in the market does not reflect the true value of the business and this is why it has bought shares back in the market.

After all it might be cheaper to buy its own shares back as opposed to paying up to buy another company.

[igoe104] 06/12/2010 09:40

Yes it is good news because its not a massive gain hes made on them, 20% ish. if holds on to them it looks good for igp short term future. if andrew puts 60k of his hard earned cash in, it looks good for share-holders.

[rivaldo] 06/12/2010 09:21

Good to see a share buyback announced today.

The FD's exercise of options is perfectly straightforward - they were due to expire 21/12/10, so he had to exercise or he'd lose them. The good news is that he obviously thinks the additional shares are worth paying for!

[wjccghcc] 03/12/2010 12:55

After last year's experience, I suspect Parris is keeping a firm hold on finncap to ensure market expectations are met or exceeded this year. Also, the H1 boost to UK revenues from the NHS is unlikely to be repeated.

[igoe104] 03/12/2010 12:23

I see in the ic write-up finn cap is still very conservative with their forecasts at 2 million. alot depends on spending in the usa i suppose, but i think it will be between 2.6 - 3.4 million this fy. also alot depends if we manage to get a lump-sum payment from the USA government (via a partner )for cyber-security which Obama is about to sign ?

[aphrodites] 03/12/2010 08:50

I see Evolution yesterday endorsed their previous buy recommendation which is probably why the share price bounced.

[igoe104] 03/12/2010 08:43

Ghana id card about to be issued, as far as i know sagem orga will do most of the running of it, they are one of our partners.its also data-based run.

[igoe104] 02/12/2010 17:41

This looks interesting as we have already won as contract with the australian government.

[yump] 02/12/2010 15:32

wrong thread !

[igoe104] 02/12/2010 10:49

The sector is going to treble in 4 years, to 8.9 billion worldwide. intercede will benefit greatly from this massive growth.

interest in biometrics is increasing at a "remarkable" rate in all sectors



ps SPOT the printing mistake 8.9 million instead of 8.9 billion. LOL

[aphrodites] 02/12/2010 08:11

Good size being offered this morning at 59.75p.

And even more snow this morning.

No chance of getting to London.

[felix99] 01/12/2010 10:50

If he is short of cash then will sell some to partially fund.

They are all EMI or approved share options. Straight forward cash required.

They are not SAYE where you save each month towards them.

[wjccghcc] 01/12/2010 10:13

I wouldn't be surprised if he needs to sell some of the shares to cover the excercise cost. As spooky says, he doesn't get paid that much.

I wouldn't view it as a negative beyond any short term turbulence.

[igoe104] 01/12/2010 09:49

Spooky it depends on what kind of options hes had. it could of been a monthly option where hes payed into it monthly over a period of 3 to 5 years.( who says hes had to come up with 50k at once)

anyway id be surprised to see him cash in for a quick buck because it wouldnt look good for him or the company. after selling that amount he would only make 10% to 15% profit, hardly worth the hassle really to make 8k maybe.