Forum Archive Index - October 2003

["Cristine Kerr" <criskerr@optusnet.com.au>]

Hi Shayne,

 

Checked one announcement only - Annual Report - surface scan ...

 

1) Present to Short Term: Strategies appear very sound, eg; have clearly identified their market/s, understand the power of partnering effectively (i.e. understand the need for 'win/win'), appear to be in touch with market trends . These are critical factors in Intellect's favour and indicate a targeted (rather than meandering) long-term path. Just as critical to articulate the high level strategies internally to management (i.e. the tactical where, what, why, how, who, etc) to ensure divisional plans and activities are clearly aligned. If this isn't in place, the former is just words/marketing hype. I'm not familiar with the markets they're operating in so can't comment on competitiveness and therefore; the likelihood they will realise their 'should see's, 'likely's, 'will be's, etc. High number of ASX notices which keeps the punters up-to-date and is likely to favourably impact market sentiment.

 

NB What's in a name? Not personally fussed with the musical branding theme - marketing hype, brand names, etc. Prefer to see products and services with names that immediately reflect their primary purpose or benefit. The company name, 'Intellect' is an example of excellent branding. Will be of limited or no interest to anyone who has little or no musical knowledge, myself included = limited branding appeal.

 

I have one for them; 'Intellect Hypo', the fastest electronic transaction processor on the market today. You'd have to medicate it to slow it down to the speed of the competition! They are welcome to pay me for this one. (Apologies for letting my warped sense of humour get away from me.)

 

2) Long Term: Present potential seems to have a lot to do with extensive research and development. They'll need to be careful their 'short-term commercial return' strategy (i.e. filter for 'go/no go' on research and development projects) doesn't impact in the long-term.

 

3) Financials are very worrying, admitted under Director's 'Going Concern' comments. Asset values (estimated by Directors) are only as good as market supply and demand.

 

To me, this is one for tracking. I'd keep an eye out for successful developments, particularly attached to $ - may or may not already exist in other ASX releases I didn't have time to view.

 

Check out Canberra Investment Corporation Limited (ASX - CNB).

 

Regards,

Cris

----- Original Message -----

From: Shayne King

To: sharechat@sharechat.co.nz

Sent: Thursday, October 02, 2003 10:16 PM

Subject: [sharechat] Heard of IHG:ASX?

Just sold my GPG shares (made a nice 13% return in just under 5 months so im
quite happy) and am now looking for something else to delve into. Managed to
find a company called Intellect. Listed on the ASX but based in Belgium.
Heard of them?? Probably not (and neither had i). So what made me look
further you ask? Well after having a brief look through their financials i
found that GPG had recently acquired 20% and currently have two directors on
the board. What they do is create and develop hardware and software for
electronic transactions. The markets they are currently active in are
Germany, Greece, Aus, NZ, US, Austria, France, Belgium, Netherlands, UK,
Brazil, and some parts of Asia. With their major markets being Europe and
Asia, revenues have been hit hard with a large write down in R&D and weak
economies in Europe and Asia (Primarily SARS) (Revenue fell 63% from 89m to
32m). This has meant they have yet to reap the rewards for their latest
product (the PRESTO 210P terminal). Further demand for the PRESTO in other
key markets has yet to materialise however should in the near future.
Liquidity for the 2003 period took an extremely hard hit falling from 1.38
in 2002 to 0.98 in 2003. However,  in the events subsequent to balance date,
GPG did len 8.2mil to IHG in order to assist with their liquidity problem.
Cash flow remains positive but only due to an increase in borrowings (GPG).

Any further comments?

regards
shayne

_________________________________________________________________
Download MSN Messenger @  http://messenger.xtramsn.co.nz   - talk to family
and friends overseas!


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/