why i paid 13.5c today

I was one of those that bought another bundle today. 500,000 averaging 12.7c. (I wanted to buy on Tuesday @9.5c but was unable to ...damn it!)

Why did I buy?

1) Confidence in the Nearmap Technology. The more I read about Nearmap the more I am of the opinion that it is more than just significantly better than its competitors in terms of clarity, speed of capture and processing, low cost and ease of use. The question is - can IPR wring a good income out of this advantage - and I think they can.

2) In fact, with only 332 million shares on issue (ignoring options for the time being) IPR won't need to make a lot to be able to earn a good income and pay a good dividend - so up goes the Earnings Per Share and sp.

3) Why will it happen? Because IPR has no debt to pay off, and very low costs of production. It is all automated once the photos are taken (and it takes less than a day to do all of Perth, for example) so the images are up on the internet being used within two weeks. With low costs and NO DEBT, this means the revenues will head into DIVIDEND territory very quickly.

4) And it will take only $35 million distributable profit to generate around 10c per share dividend!! In a few years I think the numbers will be far far greater than these) 14c for the shares now is the bargain of a lifetime!

5) if Nearmap has the potential to earn in the hundreds of millions and pay dividends approaching 50c a share, then its sp/market cap will go five to ten times that.

5) While snooping at the backdoor of the Nearmap site I found a doc with a presentation given to a geospatial conference in 2007 about the Nearmap technology by Stuart Nixon (so it is not confidential). It is very interesting and has some very impressive claims, which further added to my confidence about Nearmap's potential. (Happy to email to anyone who wants a copy)

So I am looking forward to a [very] comfortable retirement in three years time....

PS: I am an optimist so remember that, but if it is as good as I think it will be, there are no prizes for being late in the buy queue. Once the cost/benefit advantages get known, I think it will grow like rabbits.