RE:RE:RE:RE:RE:RE:RE:.375555 Expecting a move over .40c todayThe first mention began from this comment on SA:
https://seekingalpha.com/article/3961966-intermap-technologies-rest-story#comment-72620434 As MG responds to JMY, he reveals what stage within the 'final stages' they are in: final stages of acquiring the PRI. Therefore, from this there cannot be any conclusion that this had not been in progress from earlier stages - but is a standard process within 'document negotiations'.
RE:
"it does not matter when it closes": I agree, it does matter - but we have zero control or say - the bet will still return the same overall payoff if all goes well. Why?
Because on the TSX, companies are priced on conservative multiples of EBITDA. Obviously debt does play a large part on the multiple itself, however, given the business model here and the high expectations, it is 'expected' and 'guided' that debt will not be a long term issue, therefore, market will heavily ignore upon money received, despite the fact if we did start one year ealier, we would have had a fraction of the debt.
However, every month that comes by does not increase their cut. It remains at 17.5% of net royalties - no change.
The history you mention is why many smart investors here are buying: Ask yourself, why did they not go bankrupt like 95% of the other companies that collpased in 2008 and failed torecover 5 years later? They have a product, a service, a mangement team, clients and a major believe (Vertex).
I appreciate you not mentioning the negatives all the time anymore, trust me, we all see them, but we stick to the investment thesis - why we own stock. I'll revert back to knicksman's advice from a few months ago, which is the most accurate snapshot that can be given:
"Honestly, I wouldn't be opposed to a private placement, neither do I think it will not happen. If (or once) Intermap closes the SDI (and potentially the second), and demonstrates that it can execute the on its deliverables and generate healthy margins, I would think this stock trades close to (at least) $1/share. Raising equity (and getting sell side coverage) at higher prices to accelerate debt repayments to Vertex so the company can focus on unwinding the royalty would be a significant positive in my view. With long-term contracted work, earnings visibility, and a clean (and simple capital structure), IMP share should trade even higher...and a better balance sheet would better position the company to secure more work." https://seekingalpha.com/article/3870306-intermaps-lands-megadeal-stock-worth#comment-72305017 As far as the stock price goes - it is indeed showing strong signs of momentum and increasing expectations. It formed a high base between .27-.29, and now forming another from .36-.39. When you see price acting like this without the drops back to support, there's usually a 60% chance of another similar size upleg. Therefore, I would not be surprised to see us .46-.49 soon. And this, again, is purely do to the technicals and herd psychology pushing prices higher - the dialogue has changed and the market is building excitement. Now, will it be met with disappointment or satisfaction? Anyone's guess still - timing wise.
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