You comments pretty much tie in with what I posted last October:
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Where Robbo and I had numerous "disagreements" was that his lengthy posts were based on pure fiction, with no real in-depth understanding financial institution risk management systems and requirements.
For example, one of his posts strongly suggested that Citibank was one of the "potential" new clients for ITE. In reality, the risk management system development team (alone) at Citibank is larger than the whole of ITE by a factor of many times.
Similarly, his posts grossly overstated the possible market for ITE products and the contract value of same.
On the other hand, my posts were from a position of someone that has several years involved in risk management for a major bank. Bother from the perspective of an end-user and a (major) system development project leader.
Insofar as the future "value investment" of ITE, I have elaborated on this point several times previously. In essence, my view is that ITE do not have, nor are likely to be able to achieve, the critical mass to continue as a stand-alone entity. In a nutshell they have two revenue streams - new sales and maintenance/license fees from existing installations. They need a lot more of the former to generate sufficient income from the latter to survive. A task I do not believe they can achieve by themselves.
To be sure, they have a great product suite. But to convince financial institutions to dump their present system(s) and migrate to ITE products is a big ask.
I have outlined the negatives above, BUT on the plus side:
* The institutions already on board have vested interest in the continuance of ITE (they need the ongoing support)
* Hunter Hall (a value investor) bought a substantial holding in ITE at 14c. HH are well respected and would not have accumulated such a large holding unless they were convinced their investment was "safe"
There is no way I would have contemplated buying ITE at the 17c-20c level when Robbo was doing his ramping and suggesting a short term target of around the $1.00 mark.
However, at these present levels of around 10c I reckon a modest "punt" is worth a go, only because (a) I am happy to jump on the HH bandwagon and (b) I feel ITE are a candidate for takeover by a global player.
Trust this helps.
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Not a lot has changed in my opinion.
ITE
i.t.& e limited
