It&e (ITE) Hi guys,Been posting on Sharetrader Site in New...

It&e (ITE)

Hi guys,

Been posting on Sharetrader Site in New Zealand on (ITE) --ASX Division ...for about a fortnight now---re (ITE) and so thought I might add to this thread... as I assess ITE as a total winner.

(ITE) is, imo, all about; is the "The Break Even" point, imo, for it&e...(ITE)... ??

And here imo, is the .... 'Very Good News' ... right now...

With a company like it&e (ITE) -- once you go past that: 'break even point' -- most of the remainder excess revenue and annuity sales growth-- over and above that low capex figure-- from my assessments; falls straight to the profitable Bottom Line ... ..

Why so.....?

Due to the relative Low Cap Ex in a company like it&e -- it is all Knowledge Capital and so due to the High Scalability; the Profits are very lucrative, sutainable and fat.

And the reason for all this share price increase (although it is still very EARLY days yet fortunately for us !!--imo--is they know they have finally "woken up" to the past FACT --that they are past that point ....

Which Company did also know and UNDERSTAND this-- imo, is UXC --whose management are VERY close to it&e and ....that is ...why..... Geoff Lord increased his holding of ITE to: 12.67 % of the paid up capital of it&e-- (see ASX announcment on both ite and UXC site-- on 3/7/06 )--

Also do go and see -- UXC--CEO-- Geoff Lord's comments on ASX annolunceements; and his clearly laid out reasoningfor this significant up grade and purchase of it&e(ITE) shares ).

Okay then, let us get down to Tin Tacks.

... The numbers...............

I reckon that it&e will do a NPAT of between $3.5 - $4.5 millions for the half. (4.5 months tiem approx)-- -- Based on extrapolating the same Revenue Increases pro raat from LAST annual reports.

However this is conservative.

Now it it&e are rated like Bravura (BVA) then the market cap flies to the moon.

But if they are only rated at say 24-27 PE, then pro rata and annualized, the NPAT becomes about $6.7 to $8 millions in 11 months time.

However, imo only... you must remember One Up, which "space" --and JUST who their (ITE) Clients actually are -- and the annuity revenue relatinships they have with them, and the fact that what they Provide is CORE ....and not just Peripheral optional IT Risk Management Systems ......--

And therefore What (ITE) provide to the Banks; is at the VERY heart ..... of what matters to them (Banks)-- (ie: what matters to the:-- Global Banks, Regional Banks, Stock Exchanges & various global-- USA, New Zealand, Australian,European, and even Scandanavian (Denmark)-- -- and that is ... presently and currently-- larger Financial Institutions, who ARE now already it&e's (ITE) Current core Clients)-- )-- ----namely --what is importatn to them...??-- Control, Management and Supervison of RISK -- when you consider & calculate that actual -- likely -- ]future forward rated PE figure... !

So then; imo only, if you took even the lower figure -- pro rata... of even 5.5 millions NPAT--and that is a bit too low imo-- and PE'd it at say 21--and see my comments above re. PE.....

Then you stil have 'only'-- a 'market cap' of: $115 Millions, for it&e (ITE) .....

So Here is --imo--the Present Value Opportunity imo :

Today it&e is a market cap of still only--- under $30 millions.

Do you See the potential 'Intrinsic Value -- re (ITE) now', One Up ..?? [?]

And that of course , is only the 'scratch on the scratch '--only the very very....current beginning .....of where this revenue and net profit flow for (ITE) is going in my view....

The emperical factual AND already achieved factual Hard Data evidence --of what ITE have already-- is, imo, very compelling indeed. ....

Kindest Regards,

Robbo [:)]

DISCLAIMER
Views expressed in this email and/or internet correspondences, are my tentative thoughts and opinions only. These views are not to be read as being, or forming…. any form of a recommendation; of any sort whatsoever. Rather, they just simply personal opinions, and are NOT financial advice. Furthermore, these views are unwarranted and ought not to be read, as other than personal opinion and speculations, and are not warranted in any way whatsoever, either expressed or implied, for their accuracy, veracity, or likely predictive outcome. Furthermore, these comments are highly subjective and prejudiced by the writers own opinions and outlook. Therefore these views may be prone to errors, as they have not been checked by a third party, and are possibly incomplete and/or inaccurate. The opinions expressed here; are strictly on a “Without Prejudice” basis only. These personal subjective thoughts herein expressed, are only one view among many, and at best; are only the author’s whimsical thoughts, impressions, and intuitions. Obviously, as with all opinions, they are open to discussion and refutation, as well as consideration of other interpretations and review. For any investment decision, always do your own separate investigations and research, and always seek your own qualified and authorized third party independent financial advice.

Kindest Regards,

Robbo [:)]



----------------------------------------------