I'd be more inclined to believe in a buyout. If not a R/S is a guarantee for later this year, that usually will drive the price up as well.
expect financing to come in early March. Should be the time that those who want to play it safe decide to put their money in.
Invesco, the 2nd largest shareholder has been forced to sell all their shares in Intermap, they have dumped almost all the 8m shares they had as of Jan 1st. Price doesn't matter to them. Once their shares have finished selling at these prices, the supply will dry up, volume will become anemic till the $13M hits the bank which should happen in the next 6 weeks. In a marathon, you don't celebrate after the 1st mile, nor do you cry about falling behind.
Right now there are 12m shares owned by Invesco, they have been dumping shares of Intermap all last year, and are probably unaware of the recent events having written the company off. Once there shares are bought up, I would expect a significant upwards move on this. The contract is completed, as in all parties have agreed, one can only argue otherwise through pure deceit, every contract has built into them things that are contingent, in this case financing. Financing will not be a problem, there are dozens of sources for funding to pay for this project. So the only question is profitability, how much will they actually post as profit, vs. revenue only. Rich said that the 17% royalty would have a negligible effect, and unless he was honest about everything else and only chose to lie about that, then this should be a very profitable deal. I figure they will probably be in the $30M range this year, depending on when they get started, what projects are up first. Mapping won't be as profitable as software, nor will hardware installation. Training will be more profitable, etc.
The company has now proven that they can in fact execute these deals. There is a 2nd contract coming very soon, and several others that may develop quicker now that the first one is done. Further, they have the finances to keep the company alive, are going to do a reverse split in preparation for an uplisting to the Nasdaq, or they may just get bought out. Do not be fooled into thinking that they won't be making significant profits off of this contract, that is a falsehood. Don't believe me, call the CFO and talk to him.
It should be over $1. 60 was the level it reached when many didn't think the deal would go through. I think it is also important to remember this is the first of 2 deals that were in late stages of negotiation. Next one is coming soon
I read an article last week interviewing the Minister of this project in which he stated that he expected the deal to close in 2015. I don't think this delay is on either the Nation, nor Intermap. Believe what you want, and invest accordingly. I believe (with no basis to support) that the delay is either a border dispute, or an issue with the additional services not fitting within the original contract.
video, I've been staying away from this board. Ultimately there are 2 options, the deal closes and this stock explodes, or the deal does not and the other deal is where our hopes rest. The deal is not with the Nation I wished, but I believe the so called "Prime" to be a very promising group. There is a reason that they were described as "one of the best in the world". I think there is some disorganization due to this being the 1st time an SDI project was attempted, and I think that there are some border issues as some bordering Nations are historic enemies. This should be almost resolved,
For the record, I initially thought this was Ghana, then Ethiopia, wrong both times, but the so called "Prime" more than makes up for it.
Maybe I should have phrased it better. If they do a r/s an imminent buyout is out of the picture. There would be no reason to do a r/s if a buyout was soon coming. Personally I think buyout is the more likely scenario
If they do a R/S, then being bought out is unlikely. Have to wait and see which direction they go
The "prime contractor" they mentioned is the title they use for the Private in Public Private Partnership. Surely you don't think that NSDI is the only infrastructure development being done? See without reading the contracts you don't know how different titles are used. I've been in contact with the company, and would suggest that you do the same if you are confused.
I don't believe they have anything more than a director of sales. Generally speaking NSDI service companies cross sell with 3rd parties. So Company X based out of Ukraine will sell whichever product they feel will fit their customers need. The issue for ITMSF is 3 fold, getting the product awareness built up, having the ability to service and install more than 2 a year, and having global sales potential. Their Insitepro is far more globalized and will grow much faster, still expect 5-7 sales in 4q. InsitePro should be 30% of their revenue in the future with deals in the $700k $3m range