IKE - IKE GPS Group

[winner (n)]

Nice to see IKE in Bell Potter's 2023 picks with a target SP of $A 1.21 (approx $NZ 1.30)


"IKE delivers operational efficiencies within Utilities and Communications companies and related Engineering firms by replacing legacy processes with hardware and software solutions.

In addition to posting 1H23 revenue growth of 169.8% vs. pcp to $15.4m, which was roughly equal to its full year FY22 revenue of $16m, IKE also delivered a maiden interim positive operating cash flow and statutory net profit.

The result was driven largely by increasing transaction volumes as use of its software and services grows
within IKE's enterprise clients. IKE's business activity is underpinned by the $310 billion fibre and 5G rollout in North America, which offers IKE the opportunity to embed its solutions within clients.

Buy (Speculative), Valuation $A1.21 "

They put Synlait in their picks as well - that's good to see

[BlackPeter]

They put Synlait in their picks as well - that's good to see

Well, yes - but it might show as well that they do have some internal quality problems 

[Left Field]

As Biden touts his huge infrastructure spending (while Republicans meltdown) IKE is climbing nicely.

(sure on small volumes at a weird time of year...... but only a matter of time before IKE climbs above $1:00)

Go IKE!

[Minimoke]

For the purpose of full disclosure I have entered IKE, buying in yesterday at $0.92

I have cash burning a hole in my pocket and there is nothing  about NZ companies  that attracts me at the moment as I see our labour supply constrains lasting at least another 12 months.

I'm still after some speculative stocks and this fits the bill quite nicely. In its 6 months report revenue is up, net profit  up (rather than a loss), increase in expenses seems reasonable. Still lots of cash in the bank and receivables seems under control. Essentially debt free. And a potentially a strong pipeline of future revenue.

I have a two year window on this one. Currently set stop loss at 10%

[Hectorplains]

For the purpose of full disclosure I have entered IKE, buying in yesterday at $0.92

I have cash burning a hole in my pocket and there is nothing  about NZ companies  that attracts me at the moment as I see our labour supply constrains lasting at least another 12 months.

I'm still after some speculative stocks and this fits the bill quite nicely. In its 6 months report revenue is up, net profit  up (rather than a loss), increase in expenses seems reasonable. Still lots of cash in the bank and receivables seems under control. Essentially debt free. And a potentially a strong pipeline of future revenue.

I have a two year window on this one. Currently set stop loss at 10%

Great minds, Mr Moke.  I've been quietly acquiring a few.  I also like that their future is basically stateside. I can see that they will eventually shift their listing over there, if they're not bought out before then. 

[Left Field]

Big crossing of 300,000 shares this afternoon at 92c bodes well for you Mini..... or was that you just topping up some more?

(biggest volume for some time)

Anyway welcome to the supporters club.... GLH.

[Minimoke]

Big crossing of 300,000 shares this afternoon at 92c bodes well for you Mini..... or was that you just topping up some more?

(biggest volume for some time)

Anyway welcome to the supporters club.... GLH.

I find it uncouth to disclose my actual purchase value. But someone is obviously keen.

[Left Field]

Seems Minimoke isn't the only one to see potential in IKE

Here's what Rawz posted on the other channel.......

"Should get Q3 update in a couple of weeks....

From 2016 to 2021 revenue growth was 0%.. ...

Q1 F22 is when things really started to crank. The 5 year 0% growth charged to huge QRT on QRT growth:

FY22 Q1 revenue $2.6m
FY22 Q2 revenue $3.1m = 19% QRT on QRT growth
FY22 Q3 revenue $4.2m = 35% QRT on QRT growth
FY22 Q4 revenue $6.0m = 43% QRT on QRT growth
FY23 Q1 revenue $6.8m = 13% QRT on QRT growth. 162% PCP growth
FY23 Q2 revenue $8.6m = 26% QRT on QRT growth. 177% PCP growth

Awesome stuff. Q3 will alone produce more revenue than they used to do in the 5 years before (p.a.)
They are on track to do somewhere between $35m and $38m this year at the current run rate.

Market cap is $145m.
I think a 5x revenue multiple is not unreasonable given the huge growth rates and the fact that they are operating in a recession proof industry with a fortress balance sheet and huge market (see my post above).

Thus we get to a 31 March 2023 market cap valuation of $175m to $190m.  Or target SP of $1.10-$1.19

Todays SP is $0.91 so a 20-30% gain on the cards...."

[Forrestdun]

Revenue guesstimate for the Quarter $11.7mil

[Left Field]

Revenue guesstimate for the Quarter $11.7mil

I would be very happy with that....... FWIW my guesstimates a tab more conservative... FY23 around $30 mill. FY 24 at $50 mill.

[winner (n)]

I would be very happy with that....... FWIW my guesstimates a tab more conservative... FY23 around $30 mill. FY 24 at $50 mill.

FWIW my estimate (modelled and not a vague prediction) is for $10.6m heading to $39.0m for full year

Pretty good I reckon .... even though guru analysts think full year sales won't be anywhere near $39m

[Minimoke]

Since I am new to IKE and still need t get my head around all the numbers  my back of a matchbox calculation comes up with FY23$36.5

[Forrestdun]

$1 here we come?

[Minimoke]

$1 here we come?

At $0.97 its a new 12 month high, so that is encouraging. We appear to have a confirmed uptrend since July last year so that's encouraging. There are some nice packets (30,000) being traded so that is encouraging. Last year they gave a Q3 performance update on 1 Feb. Hopefully they will do so again this year and that too wil be encouraging.

[Minimoke]

7 Feb. Market update. I'm looking forward to it.