Iqgeo Share Discussion Threads

[red ninja] 25/1/2021 14:15

Mmm I'm not sure they would be immediate competition for IQGeo, but clearly they are being used to develop a transport network so with work they could compete in the domains occupied by IQGEO.

PF any thoughts on a US instigated market crash which is being discussed in the papers and some tip sheets. I know the UK markets may not be overpriced at the moment, but if the US markets were to crash surely we would see perhaps a less severe fall in the UK.

GMO article discusses the end of the US bull market.

hxxps://www.gmo.com/europe/research-library/waiting-for-the-last-dance/

[p1nkfish] 25/1/2021 11:35

Small investment for MERCIA (I also hold) but interesting to know of. Where there's a building/planning digital twin utilities are needed.

[p1nkfish] 21/1/2021 00:17

20th Jan 2021, change x for h.

Xttps://www.broadbandtechreport.com/fiber/ftth/article/14195874/rebooting-telecom-customer-service-with-open-and-transparent-network-data

[horseyphil] 20/1/2021 06:21

Japan news overdue too pf. Suspect good progress is being made there - the indications a few months back from Japan were very positive. Could be several contract win announcements soon - hopefully including the UK and Europe.

[p1nkfish] 19/1/2021 18:22

RNS due when the minority interest sale is finalised and the £2.5M cash lands.

[red ninja] 18/1/2021 12:08

Nice to see a NED has bought shares in the market :-

"Ian Kershaw, Non-Executive Director of the Company, has purchased 13,600 ordinary shares of 2 pence in the Company ("Ordinary Shares") at a price of 102.94 pence per share."

[p1nkfish] 18/1/2021 08:10

Excellent update. Enough said.

[p1nkfish] 15/1/2021 23:33

Interesting volume 14th Jan but only reported towards close of 15th Jan.

[horseyphil] 15/1/2021 11:16

Inevitable that we would have a pullback at some point. Taking some heat out of the chart and RSI is no bad thing. Volume is low.

If it should fall into the 80s I shall definitely top up as that has to be a great buying opportunity imo.

Looking forward to the trading update later this month, and fully expect it to be highly positive.

The Openreach blog is very interesting, and very promising.

[p1nkfish] 14/1/2021 12:31

The gap between value and price may close quite quickly - upwards.

I think there is much more here than we can see no matter how much time is spent researching.

I thought the Finncap £1.10 was a stretch currently but now see it as low, even at this point in development.

Longer term I see £150M market cap as more than possible, shorter term £110M, about £1.80, as growth shows.

[p1nkfish] 13/1/2021 23:22

Expecting some UK utility news, I don't believe they can't convert some opportunity there.

[p1nkfish] 13/1/2021 23:12

Walked past some Open Reach vans today and thought I'd do a quick Google for them and Iqgeo just to see if any link yet. There is, blog post put up the same day.

Iqgeo working with several UK alt-fiber plays (already using Iqgeo) and some sponsors with Open Reach to help integrate, and smooth, roll-out workflows at the alt-net providers.

"We are planning to seamlessly integrate and automate the NOI creation, evidence submission, and defect management requirements from Openreach with their own workflow activities."

This is quite big. It can help feedback errors to the Open Reach database and is one step closer to a very large customer.

[p1nkfish] 09/1/2021 14:43

Trading update last week of January. Price has out run current results imho so we might see a pull-back but not guaranteed as so tightly held.

[p1nkfish] 04/1/2021 21:55

Stuff we already know but written up, published 4/1/20.

[horseyphil] 03/1/2021 10:17

My guess fwiw is that the £100M market cap will be achieved in 2022 and that by the end of 2023 IQG will have been acquired by a major.

That is predicated upon continued Tier 1 and 2 success in the US, Canada and Japan, and capitalising on the sales opportunities to the OSPI customer base.

Could even be accelerated, either by major sales breakthroughs in the UK and EU, or by another strategic acquisition, especially if that were a niche European-based company with a broad customer base - if such a company exists.

Just a guess, so dyor etc, but the potential is clearly there. Very impressed by the management and by the Board's decisions in 2020.

[p1nkfish] 02/1/2021 12:08

It could get bumpy for a while as the gap between valuation and results widens but I fully expect results to catch-up and the gap lessen.

You might think I'm mad but I do expect £100M market cap with £150M not out of the question.

When?

Depends what multiples the market applies but £100M by end 2023 would not be beyond the realms of possibility given the quality of the customer base and dynamics. About 5x revenues by then with a strong recurring element and growth trajectory for earnings. Margins will be expanding further after OSPI integration as will deal size when SOR carried over into IQGEO from OSPI.

With a good SOR IQGEO can take on the big boys, possibly even deseating some if mobile-first and seamless operation right across the utility asset management chain wanted by the end customer. Bigger $ per implementation.

70%+ GPM target not impossible imho. Dyor etc.

[p1nkfish] 02/1/2021 00:14

Looked over forecasts and in next 9-12 months would have no surprise if some upgrade due from Finncap for IQG with breakeven brought forward 6 months. Looks possible. Dyor etc.

[p1nkfish] 02/1/2021 00:11

Investcorp might have wanted IQGEO to sell its minority interest to make it easier to pass on Ubisense to another owner. Its easier to do that if there is a single shareholder.

If so, depending on the sell price of the business, there can be some further small upside to IQGEO if any sale happens before the end of 12 months.

The Ubisense accounts to Dec 2019 are on the Companies House website and don't make very pretty reading BEFORE covid.

Covid would have had 2 upsides - contract tracing opportunities & reduced travel costs. The big downside would have been the hit to automotive and aerospace as core segments of Ubisense business.

I suspect 2020 at Ubisense will be a lot less pretty than even 2019 and Investcorp would look to unload it. Just my opinion, see Dec 2019 accounts.

IQGEO did a good job by separating from that side.

[p1nkfish] 31/12/2020 18:19

H1 2019 the RTLS investment was held at £2M on balance sheet.
H1 2020 said investment was written down to £200K.
H1 2021 said investment will come in at £2.5M cash.

[p1nkfish] 31/12/2020 16:37

Next years net cash estimate (pre-acquisition forecast vs post-acquisition forecast) was forecast to fall by 3% to £5.3M from £5.5M

No longer the case, should increase healthily.

[p1nkfish] 31/12/2020 10:23

Until > £100M market cap congratulations are a bit premature.
The foundations are being laid well though.

[red ninja] 31/12/2020 09:25

Happy New Year to all and thanks and congratulations to pf.

[p1nkfish] 31/12/2020 09:09

Put some dummy bids in and see what price you get quoted at what volume.
This should head higher still.
Trading update late January probably.

[p1nkfish] 31/12/2020 08:50

No worries hp, my pleasure.

Valuation may be a little stretched until results catch-up but no one with much sense, and no immediate need for the money, should be selling this imho.

I don't post all I find as would take too much time. Have been very pleased with some of the names using OSPi product. Gems to exploit by IQG.

There is a lot to go after that should lead to excellent $, dyor etc.
There's always risk.

Quality and predictability of future earnings justifies some valuation stretch. £1+ possible near term. Longer term SOR record and market reach should get this to £100M market cap or more imho, dyor etc.

Not investment advice.