Oddly weak this side of the Tasman compared to the other.
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Oddly weak this side of the Tasman compared to the other.
Sprung into action again today, after moving sideways over past few days, First big resistance at 1.15.
About time for market to apply higher multiple and further re-rating.
$3.4m in contracts signed last quarter and already at $1.5m in contracts this quarter. Go IKE.
They should do $20ml in revenue for FY22 very easily on back of this and pipeline of earlier contracts. With huge investment going into US infrastructure and 5G network, they are positioned well to take advantage.
Couldn't agree more, hoping that wall at 1.15 get taken out today.
Momentum building. Hopefully patient shareholders will start to see the fruits of their endeavours soon.
I am certainly well positioned for the next step up.
Yep good news for holders. Onwards and upwards. Just on 18% of my portfolio, so not adding.... tho' happy to be well above worry level.
This should further give more tailwind to IKE and other players in respective fields..
https://www.wsj.com/articles/biden-s...an-11624553972
Biden, Senators Agree to Roughly $1 Trillion Infrastructure Plan
Plan secures bipartisan agreement on overhauling the nation’s transportation, water and broadband infrastructure
"Slow and steady may yet win the race" https://www.nbr.co.nz/node/230677
(from last week's NBR). nice recap, no new insights
Anyone concerned?
Thanks for your thought justakiwi .
I wouldn't say the price is down. Its at a level where I see it tracing back more still yet. May get back to the $1.00 mark on no news.
I don't see much point in speculating about a future shareprice at this time. IKE is demonstrating its growth potential - the price will follow.
Typical IKE movement. Trickles down under low volume trading until someone wants in and then it spikes up because of the low volumes traded.
News of one of the big players that they are contracted to making a significant switch across their network is what we patiently wait for.
Does anyone follow their financials closely? Is a CR on the cards?
Cash and receivables of approximately $14m, and no debt.Refer page 7
https://www.nzx.com/announcements/373228
Some big positive numbers in the % Change column
Seems all going well with IKE
http://nzx-prod-s7fsd7f98s.s3-websit...230/350997.pdf
"Market tailwinds continue to support the growth potential of the IKE business in North
America, with more than $350b forecast to be invested into fiber and 5G infrastructure
over the next five plus years and with more than 3,000 electric utilities needing to address
the challenges of network build, strengthening, and maintenance, The IKE solutions
deliver network construction and maintenance processes that are faster, safer, and to a
higher quality data standard."
NWR Virtual investor conference has Glen Milnes CEO from iKE talking at 8:30 Aus time on 2/8/21 ... register link
https://nwrconference.webflow.io/
Im not sure PX1 would have much to report.
Have a few observations from the report that the team here may have some insight on.
a) Comparisons in this report are on Q1 a year ago which we know was at the peak of USA COVID so not likely a great comparison period. Im not getting too excited yet. (Although contracts won by 1/4 is really impressive)
b) Both # of platform transaction and #of subscription customers gre a lot faster than the respective fields revenue. Is this a product mix, pricing, size of customer or timing issue?
c) I find it a little strange that you would enter into a 3 year MSA and not have a quantifiable estimate of revenue that could be reported. Not many MSA I am aware of are signed without some expectation of volume of work.
Aside from that Im impressed with the regularity of updates. Lots of potential here.
Petty, agreed cant get too excited given what was going on in the market during the PCP. A comment from their HY21 results announcement "As previously advised, IKE and its customers in North America were impacted by COVID-19 through Q1 to June 2020. As context, and despite the ‘essential’ status of IKE and its electric utility and communications customers, the initial approximately 90-days of COVID-19 saw new sales and pipeline volumes decrease 50-70% versus subsequent levels through Q2 FY21".
It appears the revenue generated from subscriptions is fairly consistent but its the transaction revenue that has very low revenue growth for such a high % change in billable transactions. I'm not sure of the answer to this but think pricing and product mix as you've highlighted would be likely greatest influences. They've said transaction revenue is going to be the "major revenue growth engine" going forward, anyone else have thoughts on what is impacting the Transactions revenue?
Hopefully as the year progresses and we get these quarterly updates it will help build a better picture of the companies performance. I've said previously that its all fair and good that every announcement they state the market tailwinds of $350b forecast spend over the next 5 years (they've said this almost every announcement in the past year ++) but executing their change to a subscription model is going to be very important. Looking good, sticking around to see what they can achieve over the next 12 months..
US Infrastructure bill.
$73 billion for modernizing the nation's electric grid and expanding the use of renewable energy,and $65 billion to expand broadband access,a particular problem for rural areas and tribual communties.
IKE are "well positioned."
https://nwrconference.webflow.io/
Scroll down to the bottom of todays list and there is a replay option
Bugger... they have in the past posted them to YT a day or so later, here is a link to the one in March ... https://www.youtube.com/watch?v=LhMhfJK6bx4
Flick an email to NWR and they'll provide you a link to the webinar recording. They previously did this for me.
Trading halt and capital raise announced here.
Interesting times.... more acquisitions?
The announcement seems pretty straightforward -
“ Part of IKE’s stated growth objectives is the completion of acquisitions. For instance, in H2 FY21, IKE acquired the assets of Visual Globe LLC. IKE proposes to carry out the share placement and the share purchase plan in order to ensure it is well capitalised to execute on potential future acquisition opportunities as those opportunities arise, as well as to fund organic growth opportunities.”
A interesting article on CNBC re AT&T / Verizon 5G rollout and the challenges they face with attracting customers.
Question is, will this impact their planned infrastructure investment? Time will tell.
https://www.cnbc.com/2021/08/07/veri...ed-5g-now.html
Wonder what the SPP price will be $1-00 ?
AFR says 95c Australian I suppose.
Yes au 95 cents.NZ $1.00.
With such a high discount to last traded price of $1.11 I expect there will be a lot of scaling.
https://www.nzx.com/announcements/377009
Good timing with the US$1 Trillion infrastructure bill getting close to finalisation. Be silly not to participate.
Here's a link to the nitty gritty investor update behind the recent cap raise.
What's not to like!?
(my only issue is IKE already accounts for 18% of my portfolio.)
Do you think they have set aside enough shares for the retail offer? I just want to apply for enough to avoid being diluted, from the information so far I will need to apply for 16.8% of my existing holding. But it looks like I might need to apply for more than that in anticipation of scaling if the retail pool is too small.
Anyone's guess what you'll be allocated. Could be as low as 20%. However you can still buy more on the market on any dips after the cap raise.
There is that........
In general I'm not a fan of either dilution or the uncertainty of allocations. However, in this case, this 'ordinary shareholder' is already 'overweight' so not a great concern personally - especially when I see the potential ahead.
As always DYOR and take responsibility for your own decisions.
Funny thing scaling back. PX1 holders who were scaled back at 1.20 will be happy that it has reduced their losses currently.
PEB holders who got scaled back at under 20c will be somewhat mollified by the subsequent huge appreciation in the SP.
Funny you should mention that. I’ve never held Px1 but flicked over the thread today re cap raise they did last year. I’m going to do a chunk more thinking on this but I’m pretty confident Ike is no PX1.
They keep hitting runs on board with those new contracts. Almost become a second nature to them.
Here's the link for those interested.
Another brick in the wall.... good to see.
When they say $11m of new contracts won in the last 6 months. What does that translate to in recurring revenue? Is there a rough yard stick one can use?
Not sure if this helps, but transaction or recurring revenue seems to be about 75% of total revenue, see below.
Attachment 12832
I like that IKE have announced when this new contract signing is hitting the PnL. Past contract signings have not been so detailed in when the revenue is likely to be realised or over which duration.
On the other hand is 300k revenue hitting this year PnL 'material' and required to be announced? I would hope that winning these types of contracts becomes BAU. Further, as noted in the last investor preso these are not new customers but rather new contracts with existing customers. I don't see revenue increasing significatnly until they find a way to speed up customer (not contract) acquisition.
Disc: Hold and will at this stage likely partake in cap raise.
Any company that keeps the market, and shareholders updated, even if they don't necessarily need to, is a company that gets my vote.
As many have said before, their existing customer base is "sticky." They are clearly very happy with the products/service IKE is providing them with. The fact that so many initial contracts are not only being renewed, but expanded on, speaks volumes. Not to mention the flow-on effect of many of these customers requiring their sub-contractors to adopt the IKE platform too. Once they are "hooked in" and IKE continues to meet their needs, they won't be going anywhere. The potential customer base is huge. Like really huge. The IKE team appear to me to very very smart cookies. They have done their homework in terms of the potential market available to them. They know what they are doing.
The important thing now, is not only, to continue to recruit new business, but to expand their workforce to a point where they can confidently and efficiently, cope with the potential influx of new business the infrastructure will bring. Just the humble opinion of a "still a newbie" IKE holder.
But don't forget, IKE has a capital raising underway and needs to remain in the news!
Disc: I hold and will subscribe for more.
In the Offer documedt it says:
"Please note that if the SPP is oversubscribed, applications may be scaled having regard to existing shareholdings at the Record Date, and otherwise at IKE’s discretion. However, both the placement and SPP were structured to offer shareholders a pro rata amount of shares, to the extent possible."
I take that to mean that as a small shareholder I won't be scaled if I only apply for my pro rata share, but some larger shareholders might not be able to avoid dilution if their pro rata share would come to more than the maximum $15000.
SPP open ATM , who is in for it ?
I wonder what’s driving the share price tanking?
That would be taxable wouldn't it. Called arbitrage?
I guess logically it would be the difference between the sold and replacement price. As far as the continual liability goes then I guess that would revert back to the original reason you purchased the replaced shares. That is the way that I would play it and obviously this is not financial advise. I am always mindful of the reason I buy and sell shares and record that just in case the IRD ask questions. On the odd occasions that I have contacted the IRD I have always been impressed that it is a very well run department unlike the other govt departments.
It's a great shame Labour didn't bring in the flat rate 15% tax on capital gains that they campaigned on in 2014 (?). Certainty and simplicity have alot of value IMO.
Usually I would expect this to be heavily scaled but it's edging close to the SPP. Still, I would be surprised if people get their full allocation.
I don't expect an easy 10% gain from it and like Left Field I bought at well below current prices so I am weighing this up. It's not much of a discount
I've applied for a few to avoid being diluted. Company has a great product - and future - in my opinion.
I absolutely agree that IKE has a great product and future but the SPP price isn't very attractive
I've noticed that I only get reminder emails from Link if it's undersubscribed. I got an email for IKE so I wonder if it will be undersubscribed? Or maybe only slightly oversubscribed??? Watching with interest from the sidelines
Applied for 1/13th of what I have. Just to round up.
Thanks. Funnily enough I have found that rounding up is one of the worst reasons for investing but it's only a little bit and the company seems to have good prospects and I'm ahead since getting in on Percy's heads up. Probably should get some of those xrf he's into.
The first offer I was sent I didn't participate in because I couldn't see me getting any return in the near future (based on the share price trajectory at the time). Of course the SP rocketed up immediately on the close of the offer. Determined not to make that mistake again I participated in the past couple and found similar results.
Probably not buying on this purely because I have a bloated position and a kitchen reno to pay for - should the installers ever be allowed on site.
sounds like we will get all shares applied for....
"Given the high level of interest and support for the SPP from shareholders, the Board has decided that IKE will not scale-back applications and will accept the full value of all applications made."