Iqgeo Share Discussion Threads

[p1nkfish] 02/8/2022 11:04

Looks like CADTEL had about $12M revenue and 52 employees.

Probably much cheaper to take the CEO out with his contacts than pay a multiple of $12M when only some % of that revenue would be of interest.

Looking at the multiples it would be towards 2x or more revenue to take CADTEL if they want to sell when all IQGEO really need are the inroads to the customer base.

Appears a good move at first look.

[p1nkfish] 31/7/2022 12:35

Perhaps Telecom was easy sales, low hanging fruit, & they took path of least resistance so far.

[p1nkfish] 31/7/2022 12:34

They are looking for senior experienced sales for large US Utilities.

Should be decent need in US.

IQG appear to have become more Telecom centric and given the statement they thought Utilities would be the bigger opportunity it does raise questions.

Geographic and segmental spread is important and they need more non-US, non-Telecom. It will help increase interest in the shares and de-risk overall.

[p1nkfish] 31/7/2022 12:22

The future is bright.

My thinking is that between now and proof of results there will be some looking at IQG, seeing it as highly valued but valuing liquidity more highly during what comes next, deciding to reduce.

I really don't believe the worst for the market is behind us, yet.

Patience needed.

Still think 117p or below is possible as is some dilution or funding round for an acquisition.

In one interview Howard Chapman mentioned "war chest". Only one reason to call it that.

[w13ken] 31/7/2022 11:52

I've seen some before and I think they are a great marketing tool for future customers e.g. "Users love the IQGeo tool and have been amazed at the incredible performance. One big area of improvement is that IQGeo has reduced the time to understand and identify a network issue. This directly impacts our KPI’s and metrics in a very positive way."

Kris Boccio, VP Systems Development & GIS at Zayo

[red ninja] 31/7/2022 11:27

Not sure if this has been posted before.
IQGEO customer testimonials worth a listen :-

[p1nkfish] 24/7/2022 11:40

It's a strange time, some observations that could impact the perception of IQG.
The future is bright but right now every word published matters.

1) US Tech hiring is slowing, freezes are in place at some of the bigger co's and Salesforce sub-letting office space as growth is anticipated to slow, not just because of WFH.

2) Google, Amazon also changing tack in anticipation of slow down. Microsoft too in a # of teams. Reducing hiring and letting people go. Amazon changing investment emphasis.

3) IQG was fully priced so the positive results were largely accounted for (Taken For Granted) and as such any negatives are more impactful.

4) IMHO the TU tripped up as it gave no explanation for the reduced margin or cash reduction. A simple sentence for each would have been good, just to give an idea why, and suggesting both would turn over next 12 months.

Headcount has been increasing for growth - great. However, the Ubisense (Green & gang) overhang hasn't gone away where headcount increases were seen as an achievement and not just a means to an end of increased shareholder value. Old sins cast long shadows.

I think we will take a breather for a while.

Just mho, dyor etc.

I haven't sold a single share and might add if it goes sub 117p by a decent margin.

[red ninja] 22/7/2022 17:40

The market in tech. positions appears quite buoyant at the moment I am not sure how much alleviation we will see.

I sold a portion back at £1.24 if we go past £1.17 I'd buy some of those back.

[p1nkfish] 22/7/2022 17:18

Well, looks like they will have a chance soon enough, especially if it's a large seller like Cannacord. Some real value around so competition for investment £ is accute. Whoever is reducing here will be spoilt for choice. I'd have no surprise to find the market hasn't even bottomed yet but just going through a bit of a bounce. When USA earning sag we will go down with it.

AT&T spooked a few a couple of days back just by saying they had noticed increased delays in customers paying their bills. If that sort of thing begins to show up in USA sentiment and earnings, we will feel it too even if UK results are not impacted.

A new market regime for a while. Tin hats needed etc.
It will pass.

[horseyphil] 22/7/2022 16:49

Would be good to see the Directors (other than Kestrel) picking some up at this level, and especially if it were to fall further.

[p1nkfish] 22/7/2022 16:41

It's part of the course and one of those issues with a tightly held small cap.
Went over valuation recently and it has been richly priced too.

Again, not a problem to me, but anyone not understanding the full background/potential could be put off jumping in.

I'm fully loaded with IQG so it would need to get below 117p for me to add much.

Don't be surprised if this spooks management into releasing some news. Something useful outside of NA or Japan. Would also be good for it to be a utility win. It has recently come across as NA and Telecom centric. Diversity of end segment and geography might help.

[horseyphil] 22/7/2022 16:19

Well, if it falls to 117p I would certainly be topping up. Could happen though with these thin markets for small caps, and forced sellers around.

Christopher Mills at Harwood Capital makes the point that when these AIM companies are taken over there's an immediate savings averaging £800K per year in public company-related costs. Capitalise that and add it to IQG's cash, and you're close to £20M or 35p/share or 30% of the market cap at 117p.

I just see this as a temporary blip. No company is going to be immune to general market sentiment but, more importantly, IQG should be relatively unaffected by an economic downturn. And a recession in its major markets might also alleviate the recruitment difficulties.

I'm still very bullish on the company's prospects.

[p1nkfish] 22/7/2022 16:14

If we are unlucky 101p is possible but I think 117/118p likely the turn point.

Problem with 101p is it won't take much to go through £1 thereafter and its certainly not impossible.

[p1nkfish] 22/7/2022 14:28

Well 134p looks to have gone but on low volume.
117p next?

The valuation has been full and that won't help in the current environment.
Who is selling and how many?

The Proactive interview was good but the 3% margin reduction was a pointed question by the interviewer and I didn't feel there was a reason to encourage immediate new money to come in.

New money needed.

[p1nkfish] 21/7/2022 14:27

This weakness is after an excellent TU and target price increase by Finncap.

A combination of market sentiment + valuation being relatively full until year end target closer insight to prove the truth of forecasts + (imo) a large per centage holder looking to reduce.

134 & 117 look like interesting prices for the daily and weekly.

[p1nkfish] 21/7/2022 13:03

June 2022 (4.78M) was the highest monthly volume since Nov 2015 (6.89M) according to what I see. It was volume to the downside too, as per 2015.

Expect to be here or lower for a while without some reason for someone to clear the overhang.

[p1nkfish] 21/7/2022 11:54

Lots of stock for sale at 137.5p.

Unless a big buyer walks in to clear the overhang it's there for a long while and/or the price has to fall to clear it.

TBD.

[km18] 15/7/2022 12:10

...from a few months ago...

IQGEO Group PLC is an emerging developer of geospatial software for the telecoms and utility industries. The Company’s enterprise solutions create and maintain a view of network assets. The architecture of the IQGEO software platform streamlines operational processes using any device, in the office or in the field, enabling departmental collaboration. As a result, the firm supports its customers to manage and edit network view from any mobile device since its software are used to integrate data from any cloud-based source into live geospatial common operating picture.  services. ; Consequently, it implies that IQGEO is a developer of structured solutions and resources to assist clients with deploying digital technology to achieve corporate objectives. Considering the firm’s vision and mission, its IT solutions involve security, data center, workplace, network, user productivity and service desk. Given the wide product portfolio, the firm derived multiple sources of income which in turn forced up revenue to £13,849m from £9155m in 2020. The sudden revenue growth was incorporated into the firm’s P/S ratio of 6.62, signifying that the firm is able turn assets into revenue effectively. Subsequently, IQGeo optimised its net cash from £11078m to £11499m in 2021, which in turn signifies that operating, investing and financing activities are funded efficiently. Therefore, IQGEO is expected to surge in value, illustrated by the P/B ratio of 4.16.

Brief Analysis:

P/B = 4.16, above peer group.
P/S = 6.62, higher than competitors.
Revenue = £13,849m. above last year.
Net cash = £11499m, higher than prior period.

[p1nkfish] 14/7/2022 18:08

We haven't seen as much elec/gas/water as might be expected but it is the bigger overall potential.

More telecom-

[p1nkfish] 14/7/2022 09:15

Yes, forgot that.

[horseyphil] 14/7/2022 08:50

Seem to recall that margin in 2021 was artificially raised by large perpetual licence sales in Canada - apparently the Canadian tax system makes these more attractive than subscriptions.

finnCap has increased its TP from 158p to 165p.

[p1nkfish] 14/7/2022 07:48

At current run-rate the year is in the bag, great growth.

Margin slippage etc may be down to increased exhibitions & travel & meet-ups now covid is less of a barrier plus increased headcount.

ARR gained very good traction. Have to wonder where this can get to as utilities really begin to kick-in as they are expected to be bigger than the Telecom side.

What will be looking at 3-5 years from now?

[p1nkfish] 07/7/2022 17:40

Very rough guess that they need to land about £1.5M-£2M to bill in H2 to meet the revenue figure. No idea how much is already in the bag.

Interesting volume just prior to the latest win RNS. Some leak?

[horseyphil] 07/7/2022 16:09

Will be interesting to see whether the TU causes finnCap to raise its Sales forecasts for 2022 (£17.2m) and 2023 (£21.0m).

Will benefit from a slight FX tailwind from the US and Canadian sales.