GTK - Gentrack

[sb9]

Wow, the buying is relentless. Go you beauty, kudos to Gary and team.

[sb9]

National Nominees outfit must be kicking themselves for dumping their stake in recent months at an average of almost a buck lower than today's price. While Milford has all smiles to the bank.

[waikare]

Wow, the buying is relentless. Go you beauty, kudos to Gary and team.

Up again today, only a small rise of 7 cents taking it to $2.45

[winner69]

Wonder when bubble will burst and share price reverts to that 150/200 range

[Co0p_New]

Wonder when bubble will burst and share price reverts to that 150/200 range

I believe it's more likely to go up rather than down. We shall see.

[sb9]

Wonder when bubble will burst and share price reverts to that 150/200 range

I think you meant to say 250/300 range, right :p

[sb9]

Nice consolidation around 2.50s and looking resilient on an otherwise weak market day. Could well push into 3 handle on the next leg up..

[sb9]

Not much of resistance to push into $3 range soon, hey winner this might get into the previous glory days in a year or two...

[sb9]

Noice 2.80, within striking distance to $3. Guess market is pricing in another upgrade to earnings come ASM time next month on 23/02/. Surely on back of air travel resurgence Veovo business unit (airport related SAAS) must be experiencing explosive demand.

[sb9]

One-off gain from managing exit of major UK customer to the tune of $12M. Well done Gary and team!

[Co0p_New]

Did anyone catch the AGM?

[sb9]

Milford keeps accumulating, up from 13% previously to 14% and sp into 3s...

[sb9]

Someone’s got whiff of something by the looks..

[sb9]

Some fairly decent parcels being crossed at higher highs on both NZX and ASX.

Milford share holding must be close to more than 15% now.

[sb9]

HY results to be out in bit more than 2 weeks. Might see it get to $4 by then and depending on commentary/outlook, may see $5 later in the year. Back to good ole days...

[Sideshow Bob]

https://www.nzx.com/announcements/411751

Market AnnouncementGentrack Group Limited (NZX/ASX: GTK), a leading provider of software solutionsfor utilities and airports, today released its results for the half-year to 31 March 2023.

Results Summary
• Revenue: $84.3m – up 47.7% on H1’22
• EBITDA $16.0m – up $14.8m over H1’22
• Statutory NPAT: $7.9m profit v $5.8m loss in H1’22
• Cash: $41.9m – up $14.5m over FY22
• No Dividend payable
• Results include substantial one-off revenues, but strong underlying growthmeans that both FY23 and FY24 revenue guidance have been upgraded toa range of $157m to $160m (from previous guidance of $147m to $150m forFY23 and $150m for FY24)

[Co0p_New]

At first glance it looks like they've hit it out the park.

Happy holder.

[sb9]

HY results to be out in bit more than 2 weeks. Might see it get to $4 by then and depending on commentary/outlook, may see $5 later in the year. Back to good ole days...

Moving as expected, Divvy may resume when they announce FY results by which time it’ll be easily past $5. Who would’ve thought a few years back when they were going downhill, kudos to Gary and Team.

[Sideshow Bob]

At first glance it looks like they've hit it out the park.

Happy holder.

Market likes it - up 75c/22% this morning.

[winner69]

Share price heading back to the good ol’ days of 7 bucks plus

Well done if you’ve held in there or a recent entrant to the club

[sb9]

What a ripper of stock in my portfolio, glad to have added few parcels around 1.50 and 2 mark not that long ago (last year in fact).

May have to bring forward the $5 target few months earlier than FY results time.

[carrom74]

Some big parcels moving today. Saw some bring trades happen last week too.

Airports getting busier.Some upgrade in the numbers would do wonders for this stock.

Hopefully they get some business out of our three waters proposal. Somewhere I read the IT component itself is worth about $400-$500m and Gentrack”s CEO may be pitching on it…

[sb9]

Just need NAOS or National Nominees Aus finish selling their remaining lot of about 4.7mln shares as per their latest disclosure, when they went under 5% threshold.

IMO, precious levels of $6 range is not very far away, may happen by the time they report FY24 results.

[sb9]

Getting close to 5 handle, a nice trading upgrade would do the trick, may hv to wait until next month going by last few years market update dates.

[James108]

Special meeting has been called.. wonder why

[LaserEyeKiwi]

Special meeting has been called.. wonder why

all detailed in the notes of the announcement. They are proposing a new incentive scheme for management, which requires shareholder approval:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GTK/418684/403533.pdf

[sb9]

Interesting details re issue of performance rights to CEO and other staff. Looks a though final hurdle to vest all rights is when sp is at least $10.

Going by earlier years updates, there should be a trading update next week and that would set the tone for this specials meeting.

[LaserEyeKiwi]

What is happening?

[winner69]

What is happening?

Good news to come out very soon

[sb9]

Heading back to good ole days of 6s and 7s.

[blackcap]

Interesting details re issue of performance rights to CEO and other staff. Looks a though final hurdle to vest all rights is when sp is at least $10.

Going by earlier years updates, there should be a trading update next week and that would set the tone for this specials meeting.

Looks like CEO and exec get $30m in the first year if SP is over $10 and EPS hurdle is met. Over 3 years they could get $90m+. Seems rather excessive to me and I will be voting against. Not sure what the board were thinking that this is a good idea.

[winner69]

EPS FY24 ……what’s the F23 number ….doesn’t appear to be out yet?

And it’s an ‘adjusted eps’ as well …not totally transparent

EPS growth not that high for a growth company on the cusp of greatness

Money for jam I reckon ….but they’ll pass it and no doubt shareholders happy if share price is $10 even though Milne et al have got $100m of shares….. but GTK will be a billion dollar company

[sb9]

Looks like CEO and exec get $30m in the first year if SP is over $10 and EPS hurdle is met. Over 3 years they could get $90m+. Seems rather excessive to me and I will be voting against. Not sure what the board were thinking that this is a good idea.

Yep, does seem but excessive imo. I’ll read the docs in full later and decide from there. Before that, if they come out with trading update this week (going by last 2 years), that’ll probably shed some light. Gotta be one hell of an update.

[Rawz]

Just had a quick look.. this seems like the worst deal in the history of deals, maybe ever!

The hurdle EPS are
FY24 $0.16
FY25 $0.19
FY26 $0.22

There are 94.5m shares on issue so the sum of those EPS is $0.57*94.5m shares = $53.8m in profits over the three years.
If they hit the EPS hurdle and the SP hurdle of $8.50 to $8.99 the total shares issued will be 6,920,000 valued between $58.8m and $62.2m. Thus, wiping out the total profits lol wtf???

these shares may not be a cash expense but they are a real expense

and like winner says its adjusted earnings so not even real profits

[winner69]

Just had a quick look.. this seems like the worst deal in the history of deals, maybe ever!

The hurdle EPS are
FY24 $0.16
FY25 $0.19
FY26 $0.22

There are 94.5m shares on issue so the sum of those EPS is $0.57*94.5m shares = $53.8m in profits over the three years.
If they hit the EPS hurdle and the SP hurdle of $8.50 to $8.99 the total shares issued will be 6,920,000 valued between $58.8m and $62.2m. Thus, wiping out the total profits lol wtf???

these shares may not be a cash expense but they are a real expense

and like winner says its adjusted earnings so not even real profits

Yep, a non cash expense …..

……….but the greedy sods could 6tget about 10% of the company for their efforts ……efforts shareholders would expect them to put in anyway

[winner69]

Wonder if NZ Shareholders Association will vote proxies YES

They tend to be advocates of management / shareholder interests being aligned

[winner69]

Yep, does seem but excessive imo. I’ll read the docs in full later and decide from there. Before that, if they come out with trading update this week (going by last 2 years), that’ll probably shed some light. Gotta be one hell of an update.

As long as the update doesn’t say eps going to be 16 cents or more

Need to say it’s going to be 11/12 cents to justify the big bonus

[blackcap]

Wonder if NZ Shareholders Association will vote proxies YES

They tend to be advocates of management / shareholder interests being aligned

I think they will be horrified by the quantum.

[winner69]

This Gary guy seems a pretty smart and clever one

Does he ever come to New Zealand …..to check out HQ

[winner69]

Miles base salary FY22 was gbp403 and he got a short term incentive of gbp417

But one employee received nzd3.5 million ….presumeably Miles

So not doing too badly at the moment ……. Probably as he’s been with Gentrack for 3 years he thought he’d tell the Board …..me and my team are in charge of a global company blah blah blah and my 400 quid is nothing so something decent please or I’m out of here

[Rawz]

The management team can potentially earn $90m on top of their salary’s for growing earnings mid to high teens for 3 years??

It the doc it says up to 11 people will qualify. That’s avg $8m each for 3 years? It’s far too much for a small company

[winner69]

The management team can potentially earn $90m on top of their salary’s for growing earnings mid to high teens for 3 years??

It the doc it says up to 11 people will qualify. That’s avg $8m each for 3 years? It’s far too much for a small company

10% of the company for doing their job ……and that probably be more than $90m in future years

[winner69]

Share price was over $7.50 a few years ago …….so been most of way to 10 bucks before

[Jaa]

Knew the American go-go management team would bring trouble.

Outrageous and undeserved compensation request this.

[Rawz]

These guys will be the highest compensated guys on the NZX? Lol

[Oliver Mander]

Attached above is the latest NZ Shareholders Association article, focusing on Director and CEO remuneration.
Gentrack gets a mention. NZSA intends to vote any proxies it holds against the motion.
Remuneration: when is it simply too much? - New Zealand Shareholders' Association (nzshareholders.co.nz) (https://www.nzshareholders.co.nz/scrip-article/remuneration-when-is-it-simply-too-much/)

Disclosure: CEO, NZ Shareholders Association (and author of this article)

[kiora]

Attached above is the latest NZ Shareholders Association article, focusing on Director and CEO remuneration.
Gentrack gets a mention. NZSA intends to vote any proxies it holds against the motion.
Remuneration: when is it simply too much? - New Zealand Shareholders' Association (nzshareholders.co.nz) (https://www.nzshareholders.co.nz/scrip-article/remuneration-when-is-it-simply-too-much/)

Disclosure: CEO, NZ Shareholders Association (and author of this article)

Thanks Oliver

[waikare]

Attached above is the latest NZ Shareholders Association article, focusing on Director and CEO remuneration.
Gentrack gets a mention. NZSA intends to vote any proxies it holds against the motion.
Remuneration: when is it simply too much? - New Zealand Shareholders' Association (nzshareholders.co.nz) (https://www.nzshareholders.co.nz/scrip-article/remuneration-when-is-it-simply-too-much/)

Disclosure: CEO, NZ Shareholders Association (and author of this article)

Will do the same for GTK and FBU, thanks

[sb9]

Touch and go with 5 handle anytime.

[sb9]

Closed $4.71 on ASX, equates to $5.04 here.

[winner69]

Touch and go with 5 handle anytime.

And 5 it is

That 10 bucks will happen sooner than later I reckon …

[waikare]

And 5 it is

That 10 bucks will happen sooner than later I reckon …

What time frame are giving GTK to reach $10.winner69, are you talking per Christmas or a bit longer.

[winner69]

What time frame are giving GTK to reach $10.winner69, are you talking per Christmas or a bit longer.

A year or two but well in time for the execs to get that GINORMOUS bonus …or is a HUMUNGOUS bonus

[Rawz]

Daylight robbery that bonus

[waikare]

A year or two but well in time for the execs to get that GINORMOUS bonus …or is a HUMUNGOUS bonus

Any bonus whatever its called would be nice, Winner they haven't paid out much in the last few years. June 2019 the dividend was 5 cents (SP $5.62) and Dec the same year was 3 cents (SP $3.80)

[sb9]

And 5 it is

That 10 bucks will happen sooner than later I reckon …
Yep 5 and bit more. Could get to 10 sooner than we can expect, as Milford pretty much mopped most available stock off NAOS (National Nominees Aus) and if they intend to hold on, there wouldn’t be much available on market combined with some positive updates and outlook, bidding could push sp higher faster. Am sure Gary and Team has got some cunning plan to get their bonus.

Btw, voted against the special resolution, as much as I would love the execs to be rewarded for their hard work and efforts, this one borders close to being too greedy and excessive.

[blackcap]

I wonder if they are going to update the market this year as they normally do.....

Of would that make a mockery of the EPS hurdles?

Something not quite right here. As a shareholder, you really need to vote NO.

[Jaa]

84.6% in favour :mad ;:

Who were the lambs that voted for the management money grab?

[sb9]

84.6% in favour :mad ;:

Who were the lambs that voted for the management money grab?

Not really surprised by this, although personally I voted against. Will listen to video link later on and figure out what went on there.

[Jaa]

Not really surprised by this, although personally I voted against. Will listen to video link later on and figure out what went on there.

Here's the link to the meeting (https://vimeo.com/859984194/d25c106b99). Watch Gary's body language, he looks away after tough questions and drinks water after the question about share price tricks is read out. :eek2:

Thanks to Oliver Mander for the excellent questions and the shareholder who asked how long will it take if this program is renewed for management to own the whole company! :D

Gentrack has been built up over decades, for these guys to come and potentially take so much equity for 3 yrs work that they are also paid very well for is simply outrageous. I have owned Gentrack shares for longer than that and don't have that much to show for it. No idea what the major shareholders were thinking voting for this.

[Rawz]

Shocking.. who are the major shareholders?

[blackcap]

84.6% in favour :mad ;:

Who were the lambs that voted for the management money grab?

The Australian Institutions.

[winner69]

TRANSFORMATIONAL is thevword

Gentrack / Genesis deal

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GTK/421918/407551.pdf

[LaserEyeKiwi]

The juicy management remuneration scheme approved recently looks even more egregious when they obviously were in progress on this new genesis deal.

I am of course supportive of the deal, but managemnt really coming across as opportunistic poopyheads now.

[sb9]

The juicy management remuneration scheme approved recently looks even more egregious when they obviously were in progress on this new genesis deal.

I am of course supportive of the deal, but managemnt really coming across as opportunistic poopyheads now.

Yeah seems like that right, slowly releasing material news ahead of results end of month.

[sb9]

Let’s see what they will tell us tmrw, some big plans on the journey towards much talked $10 price target per executive bonus scheme

[Sideshow Bob]

Milford trimming their holding.....

https://www.nzx.com/announcements/422461

[Sideshow Bob]

https://www.nzx.com/announcements/422454

Results Summary

• Revenue: $169.9m – up 34.5% on FY22
• EBITDA: $23.2m – up $15.1m over FY22
• Statutory NPAT: $10.0m profit v $3.3m loss in FY22
• Cash: $49.2m – up $21.8m over FY22
• No dividend payable
• Results include $27.6m of one-off revenues, but strong underlying growthmeans that FY24 revenue guidance has been upgraded to c. $170m (fromprevious guidance of $157m to $160m for FY

[LaserEyeKiwi]

Interesting result, also good Q&A on the call.

Growth guidance is really masked by those $27.6m in “one off” revenue this year (which is revenue from failed UK power companies).

Will be interesting to see what FY25 looks like as presumably if they keep the same sort of growth that they project for FY24, then EBITDA should potentially really rip higher as operational leverage kicks in (eg new revenue dollars increasingly flow through to EBITDA/Net Income as fixed costs grow proportionally much slower than revenue).

They even teased entering the American market at some point once they are ready, in response to a question on the call. $$$$$

[LaserEyeKiwi]

Market liked it:

14874

[sb9]

Thanks LEK, will try and listen to the call transcript later on. With today's price move, its almost in old GTK price territory where it traded in 6-7 range. Looks like Gary and team are firm on their target to beat EPS hurdle to get their bonus by FY26.

[sb9]

Listened to investor call script, Gary has some bullish commentary and statements about what's ahead. No wonder they negotiated such a juicy LTI scheme for senior execs with Board. Gary is in Trans Tasman region for next 3 months or so and going by the commentary on the call he's here to negotiate some big deals. No wonder sp reacted so bullish and continues to rally hard.

Could well be $6+ very soon, apart from big players don't think much free float available in the market, hence such big gyrations in price.

[LaserEyeKiwi]

Crikey! That Australia tour management are doing must be scooping up some new institutional investors at quite the pace.

https://www.sharetrader.co.nz/blob:https://www.sharetrader.co.nz/8cb6868f-daf6-41f1-80da-ab46fa96fb17
https://www.sharetrader.co.nz/blob:https://www.sharetrader.co.nz/174623c5-0cce-46d9-96ad-04e808923ba414876

[sb9]

Haha, guess all the attention was on TRA’s index inclusion, no one even said a word about GTK’s prospect of inclusion and they got in ahead of TRA.

No wonder price been rallying so hard post results this week. Still got couple of weeks of fun to go. Keeping on my target price to lock in some profits before that.

GTK is now biggest holding in my portfolio being at the bottom for past 2 years, very chuffed 😊

[daveypnz]

GTK added to the NZX 50?

Can't find any news; those links didn't work

edit: DW found it on NZX website

[alokdhir]

Haha, guess all the attention was on TRA’s index inclusion, no one even said a word about GTK’s prospect of inclusion and they got in ahead of TRA.

No wonder price been rallying so hard post results this week. Still got couple of weeks of fun to go. Keeping on my target price to lock in some profits before that.

GTK is now biggest holding in my portfolio being at the bottom for past 2 years, very chuffed 

To be fair all were talking about GTK inclusion along with TRA ...but as its non retail stock with no dividends etc thus not much interest from retail investors here ...also it was even more thinly traded then TRA .

Index inclusion happened exactly as told !!

[silverblizzard888]

Stocks got a lot of potential in the long run from the energy sector, but based off there recent result and forecast for the current financial year I'm not sure I get where the fuss is considering the market cap is $638m, but only a $10m profit that doesn't look like it'll be growing too much in the current financial year, though probably valued based off a revenue multiple.

Decent gains for those holding, this is a stock I would of had trouble picking, but nice work to those who saw the vision. This stock has gone from $1.35 in September 2022 to $6.19 today thats a 358% gain in 16 months.

Market cap: $638m

• Revenue: $169.9m – up 34.5% on FY22
• EBITDA: $23.2m – up $15.1m over FY22
• Statutory NPAT: $10.0m profit v $3.3m loss in FY22

FY24 guidance
•Revenue $170m
•EBITDA between $20.5m and $25.5m.

[LaserEyeKiwi]

Stocks got a lot of potential in the long run from the energy sector, but based off there recent result and forecast for the current financial year I'm not sure I get where the fuss is considering the market cap is $638m, but only a $10m profit that doesn't look like it'll be growing too much in the current financial year, though probably valued based off a revenue multiple.

Decent gains for those holding, this is a stock I would of had trouble picking, but nice work to those who saw the vision. This stock has gone from $1.35 in September 2022 to $6.19 today thats a 358% gain in 16 months.

Market cap: $638m

• Revenue: $169.9m – up 34.5% on FY22
• EBITDA: $23.2m – up $15.1m over FY22
• Statutory NPAT: $10.0m profit v $3.3m loss in FY22

FY24 guidance
•Revenue $170m
•EBITDA between $20.5m and $25.5m.

See the last page of discussion. Strong underlying growth guided for in 2024 is masked by a large chunk of 2023 revenue that is not going to be present in 2024 (failed UK power companies that are customers who no longer exist)

[LaserEyeKiwi]

Gadzooks!

14881

[LaserEyeKiwi]

The poor b@stard at this firm who dumped 1% of total outstanding shares, only to see a huge move to the upside in the days afterward. Thats at least half million dollars in foregone gains.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GTK/422907/408877.pdf

[sb9]

The poor b@stard at this firm who dumped 1% of total outstanding shares, only to see a huge move to the upside in the days afterward. Thats at least half million dollars in foregone gains.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GTK/422907/408877.pdf

Our man Gary is also happy to lock in some profits by disposing $0.5mln worth of stock. He's still got zillion free ones though...

[LaserEyeKiwi]

Our man Gary is also happy to lock in some profits by disposing $0.5mln worth of stock. He's still got zillion free ones though...

Was to pay taxes on the incentive shares.

[LaserEyeKiwi]

FYI - Gentrack CEO will be participating in todays NZX virtual investor event at 11am

[sb9]

Sold a small stake into matching at close, glad to lock in some profits. Keep rest for eventual $10 :)

[LaserEyeKiwi]

Whoa - Swan Hill sold its entire almost 10% stake yesterday.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GTK/423906/410027.pdf

[sb9]

Whoa - Swan Hill sold its entire almost 10% stake yesterday.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GTK/423906/410027.pdf

Good price too $6.94 a piece, funds see value here

[LaserEyeKiwi]

Good price too $6.94 a piece, funds see value here

A lot of funds probably had to buy as well to match the NZ50 inclusion.

[winner69]

Regal Funds now a SSH

Weren’t they involved in the ERoad takeover bid?

[Sideshow Bob]

https://www.nzx.com/announcements/425560

Gentrack invests in Amber to enhance and globally license Amber’s energy optimisation solutions

Gentrack (NZX/ASX:GTK) has made an AUD $12m investment in Amber as part of a $29m Series C funding round.

Amber is an Australian based technology company and energy retailer that gives customers direct access to real time energy prices and the technology to automate their home batteries and EVs to unlock more value. Amber’s technology has been the driver of its doubling in growth over the last six months as it allows customers to use their batteries to reduce their energy bills - or get paid for their energy, while staying in control.

Gentrack’s investment includes an agreement that will see Gentrack and Amber further develop, and internationally sell and deploy, an end-to-end solution for billing, care and optimisation for household batteries, EV chargers and other smart devices to automate load shifting for customers.

This partnership will position Amber and Gentrack to compete in the fast-growing international utility market for smart device optimisation products.

Dan Adams Co-CEO and Co-Founder, Amber Electric said: “We are delighted that Gentrack has led this round and excited by the opportunities this strategic partnership will unlock. From our first meeting with Gentrack it was clear we have a common vision. For us, having a strong global delivery partner who is reliable, respected and capable is essential. We’ve received significant interest from overseas utilities to license our software. Gentrack will accelerate our ambition of maximising and expanding the number of markets we can reach with our technology.”

“Part of the funds from this investment round will go to us upgrading to Gentrack’s leading billing and customer care solution. They are a global leader and have an excellent reputation for delivery and support. The Gentrack system has the out-of-the-box capabilities needed to deploy flexible energy solutions while many of the older systems in the market can’t cope with such propositions. By bundling our technology with Gentrack’s, we will be well positioned to deploy it around the world” added Amber’s Co-CEO and Co-Founder Chris Thompson.

Gary Miles, CEO Gentrack said: “The founders Chris and Dan are passionate about building products that customers love and to accelerate the energy transition. In many ways, they are leading the transition to a two-way grid that reduces carbon usage and energy bills for consumers. It is a team and technology that we are excited to invest in and take globally. I am confident our customers and prospects will find the offering highly compelling. By integrating Gentrack’s g2.0 with Amber Electric’s SmartShiftTM technology we can present a strong and viable option to utilities internationally.”

The $29m Series C round, led by Gentrack, will also see Breakthrough Victoria, and Rubio Impact Ventures join existing Amber Electric shareholders Commonwealth Bank, Square Peg and Main Sequence.

About Amber Electric

Amber is an Australian based electricity retailer and technology company with a mission to accelerate the renewable transition. Amber gives customers access to the real-time wholesale electricity price and the technology to automate smart devices in their homes to use more cheap, renewable power when it’s available in the grid, and sell their excess renewable energy back to the grid at the same price as the big generators earn. Amber customers capture the full value of their household batteries and EVs in the energy market while accelerating the renewable transition. Amber is now planning to licence its technology to international utilities.
https://www.amber.com.au/

[LaserEyeKiwi]

Wilson Asset Management becomes a significant holder (5%).

Nothing but buys on the trade list.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GTK/425647/412008.pdf

[LaserEyeKiwi]

New ATH at 7.05?

[daveypnz]

Approaching $8

[sb9]

At this rate, it could get to $10 some time this year. Been on solid bull run over past year or so…

[LaserEyeKiwi]

Once again, flabbergasted to witness an AGM without a single shareholder question asked. What a joke this country’s investment community is.

I had plenty of questions to ask, but because my shares are held via a custodian I was unable to ask them (no individual shareholder number).

[sb9]

Past $8 mark, next stop $10?

[daveypnz]

On the move again :t_up:

[sb9]

Couple of big crossings today at 8.23 a piece, one lot of 600k and another of 400k.

Never thought this would become biggest holding in my portfolio. Onto $10 soon....

[winner69]

Couple of big crossings today at 8.23 a piece, one lot of 600k and another of 400k.

Never thought this would become biggest holding in my portfolio. Onto $10 soon....

Be even bigger when GTK gets to that $10 ….not that many months away methinks

[daveypnz]

Big pop at the close - $8.90

[LaserEyeKiwi]

Big pop at the close - $8.90

Lets ride this puppy all the way to $9.99c

Bear in mind massive dilution will occur once the share price hits $10, due to the insane incentive scheme voted on in October 2023.

it’s almost suspicious - wouldn’t be surprised if NZX issues a “please explain”.

[sb9]

Really surprising to see the relentless rally without any major trading update from the company. Wonder who's driving up price at these levels and with decent volume too. They must have a solid reason that a decent return from here is plausible.

[LaserEyeKiwi]

Guidance upgrade:

Guidance


Both Utilities and Veovo continue to grow strongly as a result of recent wins and customer upgrades and so we are able to upgrade our previous revenue guidance of at least $170m for FY24, to new guidance of c.$200m for FY24.

Against this higher revenue guidance, and whilst continuing to invest in strategic R&D and international expansion, EBITDA is expected to be between $23.5m and $26.5m (12%-13%). This compares to our previous guidance of between c. $20.5m and $25.5m.

[LaserEyeKiwi]

Herald with some good coverage:

https://www.nzherald.co.nz/business/gentrack-raises-full-year-profit-guidance-first-half-revenue-up-a-fifth/OAYHPD3OJ5FMBIN3PZJWRMIB74/

[LaserEyeKiwi]

Well it seems the market likes the result!

15107

[winner69]

Well it seems the market likes the result!

15107

Should get to that magical 10 bucks this week

That’ll make senior managers happy ….and shareholders too

[sb9]

Should get to that magical 10 bucks this week

That’ll make senior managers happy ….and shareholders too

For sure, no wonder Gary and team were confident when they put together rather generous bonus scheme last year.

As for retail shareolder like me, I'm happy with my almost 5x gains. Now largest by value in my portfolio, even trumped A2 and thought that would never happen.

[kiwical]

Sharesies latest podcast released today has Gary talking about the company and expansions if you are interested in checking it out.

https://podcasts.apple.com/nz/podcast/shared-lunch/id1515069366

[LaserEyeKiwi]

At $9.80.

A reminder that a giant dilution event occurs at $10.00.

[sb9]

Getting bit itchy to take some profits at current levels.

[sb9]

GTK being added to ASX All Technology Index eff 24th Jun.

[James108]

At $9.80.

A reminder that a giant dilution event occurs at $10.00.

I don't think it does? My memory of the incentive plan is that they need $10 for maximum incentives but surely it was pro-rata below $10.

Can't quite be bothered looking it up.

[winner69]

I don't think it does? My memory of the incentive plan is that they need $10 for maximum incentives but surely it was pro-rata below $10.

Can't quite be bothered looking it up.

Share price $10 plus EPS gate (not too onerous) results in about 9% dilution

But then we’re all richer than a year or so ago eh

[LaserEyeKiwi]

Share price $10 plus EPS gate (not too onerous) results in about 9% dilution

But then we’re all richer than a year or so ago eh

It seems hugely problematic to me that they get almost 10% of the company granted to them for a rather low bar - especially when they had internal knowledge of as yet unannounced deals as they pushed for the incentive plan.

Yes i am happy at the share price gain. No I dont think it warrants such a huge payout.

[sb9]

Are we thr yet, hmm 9.99. Tht we may break 10 bucks resistance today.

[Jaa]

Kudos to whoever is keeping the price at 9.99 :p

Assume the robbery only occurs on the closing price or is the VWAP for the day?

[sb9]

Finally past $10 mark, funds getting in ahead of tech index addition on ASX perhaps..

Good chat the other day by Gary on Sharesies, worth a watch.

Energy and water tech on steroids—Gentrack (youtube.com)

[daveypnz]

Has the dilution occurred?

[sb9]

$10.70 and looking strong, next stop $11?

[percy]

A Bell Potter pick;NB au$
Gentrack (GTK)
Gentrack is a recent S&P/ASX All
Technology Index inclusion after a
significant share price appreciation of
c.150% (market cap c.<1bn) over the
past year due to strong execution and
consistent guidance upgrades. GTK
generates 85% of its revenue (majority
recurring) from its specialised energy/
water utilities enterprise billing/CRM
(customer relationship management)
platforms and is leveraged to
future-facing distributed energy and
decentralised storage trends, which
have coincided with significant tech
debt within legacy solutions. Although
it appears expensive at c.40x FY24
and c.30x FY25 EV/EBITDA multiples,
we believe the valuation is justified
with a long and visible opportunity for
revenue growth, as well as margin
expansion following investment in
headcount to deliver on its pipeline
of deployments and integrations in
addition to geographic expansion into
Asia and EMEA.
Buy, Price Target $10.90

[sb9]

A Bell Potter pick;NB au$
Gentrack (GTK)
Gentrack is a recent S&P/ASX All
Technology Index inclusion after a
significant share price appreciation of
c.150% (market cap c.<1bn) over the
past year due to strong execution and
consistent guidance upgrades. GTK
generates 85% of its revenue (majority
recurring) from its specialised energy/
water utilities enterprise billing/CRM
(customer relationship management)
platforms and is leveraged to
future-facing distributed energy and
decentralised storage trends, which
have coincided with significant tech
debt within legacy solutions. Although
it appears expensive at c.40x FY24
and c.30x FY25 EV/EBITDA multiples,
we believe the valuation is justified
with a long and visible opportunity for
revenue growth, as well as margin
expansion following investment in
headcount to deliver on its pipeline
of deployments and integrations in
addition to geographic expansion into
Asia and EMEA.
Buy, Price Target $10.90

Thanks percy, holders “well positioned”, lol

[sb9]

Couldn’t help but booked some profits today.

[LaserEyeKiwi]

Couldn’t help but booked some profits today.

Almost a year ago I had $20k spare to allocate, and so I tried the old “coffee can” investing approach of chucking $10k into speculative high growth plays conceivably capable of 10x or more returns, with the intention of never selling until those returns are achieved (unless there is a significant change to the selected companies).

Only names that fit the bill for me (were actual businesses and not pure gambles) on NZX were Gentrack & Serko.

Serko is pretty much flat since then, while Gentrack is up almost 2.5x. Still intend to hold until at least 10x achieved.

[sb9]

Fair enough LEK, not gloating but I’m sitting on 5x return here currently, so no brainer for me to take some profits.

[LaserEyeKiwi]

Fair enough LEK, not gloating but I’m sitting on 5x return here currently, so no brainer for me to take some profits.

well done!