WHAT happens when a popular minnow posts a maiden profit, outlines a range of product extensions and confirms a healthy cash balance? The shares plunge, of course.
Such was the fate of the closely watched aerial mapper, which this week revealed an interim surplus of $780,000. Certainly, NearMap shares have run hard, with investors buoyed by the on-register presence of value fundies Wilson Asset Management and Paradice Investment Management. NearMap chief Simon Crowther confirms management’s desire to reposition the company from an aerial mapper to a visual-analytics business.
In other words, the real value is extracting data from the high-res pictures captured, such as how a coastline has changed over a period of time. NearMap last month introduced NearMap Rail, a tool for miners to keep tabs on the condition of their railways. Other spinouts are planned for solar, construction, real estate and roofing industries.
Cognisant of NearMap’s stellar run, we rated the stock a hold at 59c in mid-February. With a melting heart, we upgrade to a buy.
The Weekend Australian accepts no responsibility for stock recommendations. Readers should contact a licensed financial adviser. The author does not hold shares in the stocks mentioned.
