Iqgeo Share Discussion Threads

[w13ken] 13/8/2022 23:21

pf, you are a mine of information. Many thanks for keeping this board so well informed...

[p1nkfish] 13/8/2022 22:24

Before the funding round Dirs held 8.6% of the company.
Post funding round they hold a reduced 8.26%.
Chapman didn't take part to remain independent.

901,644 shares (of the 2,513,600 newly issued) needed to be found a home. All others accounted for by Dir and existing large holders.

The seller (believed cleared) may have been a shorter borrowing stock and forced to cover - a guess.

[p1nkfish] 13/8/2022 16:22

I think the seller has been cleared too.

[red ninja] 13/8/2022 15:10

Bit of a Janet and John explanation which elucidates to some degree how IQGEO and Comsof acquisition will work :-

[p1nkfish] 12/8/2022 15:07

Petti - "........heavily oversubscribed......"

[p1nkfish] 12/8/2022 15:00

hp, yes. District Heating.

As they can model anything it's the whole Smart City as a potential too. Telecom, all utilities, IoT.

It gets interesting quite quickly. Easy to get lost down that rabbit hole.

Good luck too and let's see where this goes over next 3-5.

The really big boys looking into proper Smart City might take note.

[horseyphil] 12/8/2022 14:01

Looks like another game-changing acquisition - and seemingly on very reasonable terms. What a client base IQGeo now has!

You nailed it, pf - you mentioned Comsof in over 20 posts, and your post 936 in May 2022 set out why you thought IQG should acquire them.

As you say, this gives IQG the scale and complete package of services that could make it an attractive target itself.

Back in 2020 I predicted that IQG would be taken out by a major by the end of 2023. I'll stick with that, but hope that I'm wrong as there's the potential to build up a substantial global business over the next 5 years.

Btw, this also now gives us an opening into district heating planning and design. I hadn't realised how big a sector this is becoming until I looked at the scale and participants in the recent International District Energy Association Conference held in Toronto in June.

[p1nkfish] 12/8/2022 09:16

Another consequence - IQGEO now becomes a real acquisition target itself as it bulks up.

COMSOF won't need the likes of GE Smallworld Inventory etc. It could upset an apple cart or two and the apple cart owners can become interested.

It does become one vendor, one solution, easier to adopt. Better than stitching together 2 or more packages.

That has power. As Petti said it will allow customers to get on with their real jobs and not be distracted with having to integrate multiple packages.

Very good.

I dont see how IQGEO shareholders can lose so long as a strong hand is on the tiller as they bring the companies together.

ONE CONCERN - temporary margin dilution as Comsof looks weaker on that front.

SUGGESTION - on all results for a while seperate out core IQGEO margin and results from COMSOF so new investors get to see what's what. A total margin and revenue number will be needed but not clever to take a step back on margin metric without proper explanation.

As Comsof margin rises there will be a revenue reduction (most likely), again explain thoroughly in any results and seperate out.

Some people won't bother looking deeply. They will just see margin erosion and assume IQG has dropped the ball or is buying revenue.

Transition of Comsof towards more SaaS will need explanation. There is usually a valley where revenue falls as margin expands until the market gets it. During that valley the unitiated jump to conclusions and the share price can suffer.

Been there, done that, and bought the T-shirt. Early transition to SaaS in another company led one large investor, who should have known better, to sell out when SaaS was relatively new. Revenues fell, as expected. Big investor dumped, I bought. "I got it" and their well paid analysts didn't. Made a big difference to me personally. He was a good CEO, very straight, no nonsense and told the big investor they were wrong. CEO was right.

[p1nkfish] 12/8/2022 08:12

It's pleasing to see UK software companies acquiring for good reason. Where it make sense we should use the depth of our capital markets to become more aggressive buying abroad and less of a victim. Global Britain, not regional has been.

Nice one IQG, it looks good.
CTO material possibly within Comsof too.
Keep Group HQ in UK though.

GLA.

Good to see use of the word "Group" in the release and not "family". As soon as I see "family" I know management have lost it.

Have (and do hold) other successful UK based acquirers of smaller co's abroad.
It can be a recipe for rapid global growth, if done carefully.

[p1nkfish] 12/8/2022 07:27

Comsof acquisition, looks like IQGEO now is in the big league if you know some of the Comsof wins. It will help tie-up EU & UK.

Good. Some dilution but could be worse.

Need to do more digging - search this thread with Comsof as the term to get some background. Was one had an eye on for a while.

IQGEO took Comsof to the cleaners in North America but Comsof strong in EU and some UK.

A thorough coverage now.

[p1nkfish] 10/8/2022 08:21

117p looks unlikely.

From 2019, 2020, 2021 - history suggests news of contract win around Interims.

Buys at this level now look useful if that history repeats and as Chapman said results "accelerate".

Results around 12th Sept if history repeats again looking at day of week.

[p1nkfish] 09/8/2022 13:03

Next leg down?
Expect seller to be cleared by around 12th Sept.
Before then could still touch 117p or even below.
Interesting lack of any Director buys or interest at this price.

11% down since 14th July TU to today.

[p1nkfish] 06/8/2022 13:44

About 1.79M shares is 3%.
28th June, 2.5M+ volume day on a low number of trades.

[p1nkfish] 04/8/2022 10:07

Still a seller hanging about and little interest at the price.
Patience.

[horseyphil] 02/8/2022 13:36

Interesting stuff - thanks pf.

Looks like a really promising development.

[p1nkfish] 02/8/2022 13:34

Lastly, pretty obvious buying this is paying for stuff that IQGEO don't need. Same reason Amazon don't buy companies with lots of warehousing space, usually.

[p1nkfish] 02/8/2022 13:22

horsey, bambora offer a service to get some intel on interests and search terms at co's.

There was a "surge" of interest at CADTEL for info on selling a company. Recently, in past couple of months.

They have some interesting capabilities but taken nearly 35 years to get to $12M revenue.

Chris Fort was CEO from during 2019 until recently, through Covid, after high sales roles.

It looks like a good move for all involved. Cadtel launched some new s/w capabilities in July 2022 but look a bit exposed to me, lots of competition at scale.

Quickest mover wins.

IQGEO could take out the bits of CADTEL of interest - yes. Much cheaper than buying the whole caboodle.

[p1nkfish] 02/8/2022 12:14

Also appears Chris Fort is returning to his roots in sales, where he had years of development prior to CEO role. Must be a better fit for him overall.

[horseyphil] 02/8/2022 11:31

Good point pf. Might also be potential for some other CADTEL employees to join IQG.

As you say, looks like a good move.

[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