SP1 (ASX) Ann: Australian Merchant Onboarding Update

Originally posted by jlo2012: ↑

Hi @BOSKA

I do still monitor ISX and am considering buying back in as there have been some important derisking events take place.

I still am unimpressed with the vagueness of the initial supply chain issue reporting, revenue recognition, and timings associated with these issues, the way perf shares were acheived and then ultimately some of the revenue relied on for the perf shares being sent back up network or frozen etc. I will be interested to look at the 6month financial statements for Jul-Dec 18 to see if some of that rev from Jul17-June18 has been written off/impaired.

Its really a matter of whether I am confident to look at the above as an isolated event in which management's interests were not aligned with other shareholders and if so can I now otherwise trust management going forward?

I am monitoring the following at the moment:

- timings and types of recent announcements are making me think there may be a CR on the horizon. I note some others here suspect this too.

- It was noted briefly on one of the threads a very high volume cross trade approx $3m+ that occurred the other day. That was the highest volume day in the last 4 years from a brief look at the chart. I haven't made enquires yet but off the top of my head i think either one of the founders or the fund that bought into the CR late last year would be the only ones with holding sizes big enough to sell in that size. So I'm curious to see if a 3Y comes out showing one of the directors has sold or if a sub holder notice comes out.

- SP appeared to get a bit caught up in the fin tech pump over the last couple of weeks. There has been a pull back so Ill watch to see if I can identify a base form. Despite the great potential this is still a company being valued around $200mil that has not yet proven itself re: consistent revenue, being able to produce any gross profit (margin) from its revs etc.

So yes I still watch and may reenter at some point.

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the level of uncertainty in isx's product and future between the KAB disaster and the eu tier 1 operations was quite high and the share price reflected that uncertainty. It was basically back at being a spec rather than a high growth play.

at 11-13cents you could get in and double your money in a year, but if there was another major hiccup during that period you may have also heavily over invested in a low volume/low liquidity stock.

90% of that uncertainty has now passed for me. Key milestones are now adi license and aus tier 1 operations. Without these we cant capitilise on the exposed aus market opportunity. Ie the forecast wont be met. But now it is starting to be price as if the full year forecast is going to be met.

I think there will be a better opportunity to buy between now and the adi license.