NEA - Nearmap Limited

[galumay]

I suspect the only winners here will be the shorters.

Yup.

A cessna with a box brownie does not make a viable business .

 

[Trav.]

I see that NEA is a dog and you would be mad to invest for the long-term but I am looking at short term trade prospects and NEA is a interesting stock.

- Sold down due to news that every knows about and gap created which is still ~14% down from the 29/1
- Recovered from low which found support @ 1.60
- SP Recovering and testing the $2 level and wave 3 could eat into that gap down area

anyway one for the watch list and will see what happens next week

 

[sptrawler]

I always struggle to get excited about a company that sells what everyone else sells, especially when they are a small player, in a big pond.

 

[frugal.rock]

I thought the product they sell is fairly unique?
Orthorectified spatial imagery.
The only main competetor I can think of is AAM Hatch, (may have had a name change?)

When Nearmap was free, I remember it was pretty good for time lapse imagery also.

If they weren't so expensive, I would use them myself... currently I cheat and use a screen shot from six maps (NSW) or Google, but that overlay is discarded and not given to clients.
Just helps me to do my thing, sometimes.
F.Rock

 

[sptrawler]

I thought the product they sell is fairly unique?
Orthorectified spatial imagery.
The only main competetor I can think of is AAM Hatch, (may have had a name change?)

When Nearmap was free, I remember it was pretty good for time lapse imagery also.

If they weren't so expensive, I would use them myself... currently I cheat and use a screen shot from six maps (NSW) or Google, but that overlay is discarded and not given to clients.
Just helps me to do my thing, sometimes.
F.Rock

If you can cheat and by pass them, can't other people? Also I would be surprised if Government dept's, don't have access to very accurate imagery.

 

[Trav.]

The below highlighted comment caught my eye yesterday, as you would have to use a legitimate mapping service for this area as the pirated version wouldn't stand up in court when a vehicle runs of the end of a pier

 

[frugal.rock]

If you can cheat and by pass them, can't other people? Also I would be surprised if Government dept's, don't have access to very accurate imagery.

What Nearmap provides is more accurate and on a much larger scale.
I have to scale a screen shot for what I do and then position it.
It's rough as guts, which is all I need.
I don't give the screen shot to clients.
Just helps me draw lines eg, the back of a house that would be a pain in the butt to survey.
Nearmap is providing much bigger area's, their 'flat' earth photos get rectified for the earth's curvature and also coordinated onto commonly used coordinate systems for mapping or whatever other purpose.

As far as I know, government use AAM Hatch, Google Earth Pro with a special access to more recent imagery and maybe Nearmap also.
The RTA/RMS in NSW use AAM overlays for their design drawings.
Local government use G Earth pro mainly for viewing purposes...
Honestly, Nearmap products are fairly unique. They are not the only provider.
Book an area, they have it flown over, same with AAM.
Google uses satellite imagery. No comparison for imagery quality and accuracy. No LiDar data either.

It's the big end of town using their services due to larger areas involved
Eg, mines, Greenfield subdivisions, new roads, waterways etc.

F.Rock
PS, larger survey firms can do the same thing using drone's, usually small drone's though. Max survey area each go, around 500m^2 and very reliant on no/low wind conditions.
The drone pilot needs a CASA pilot license (scaled down version) APAS ?...no kidding.
Photos then get processed for roll, pitch & yaw, rectified, positioned.

 

[Value Hunter]

I actually think Nearmap is a good business (I think in another 3 or 4 years it will be producing large profits). I just think given their revenue growth rate and where they are in terms of business maturity their valuation is massive. If the share price dropped below $1 I would certainly take a closer look, but at the current prices I am not keen.

 

[Boggo]

Seems to be plodding along, surprised that there hasn't been a mention of it for a while.
(Disc - I do hold)

(click to expand)

 

[frugal.rock]

@Boggo
I think a lot of stocks have fallen off the radars recently. Nearmap had fallen off my trampings.
Cheers.

F.Rock

 

[Boggo]

https://www.aussiestockforums.com/posts/1073509/

It has really taken off today with some great news.

 

[Trav.]

Very nice mate

 

[frugal.rock]

For those interested in nearmap, you may like to take a look at 3DP
Another player in the market.
DYOR

 

[Lucky777]

Financials coming out soon, I’ve been following along, they’ve picked up contracts in USA and Aus(government) and are doing well. They have new cloud data centres and their new navig8(AI) system looks good. I expect to hit $4. I came in at about $2.

 

[Lucky777]

Decided to sell after financials announcement.

CapEx too high, not really an essential service and customer acquisition.

19% gain.

 

[Lucky777]

After looking back, think I pulled the trigger too quickly. Stupid algos and robots making nonsense of it yesterday. I think it will head to $3 - bit slower growth that I had anticipated. Rather use the capital elsewhere.

 

[Dona Ferentes]

some (probably disgruntled) analyst most likely fed this to the journo

[NEA has] ...taken to excluding customer losses from its operating performance metric showing ... ugh, customer losses.
That mightn't make much sense because it doesn't. Nearmap told investors that normalised FY20 group churn expressed as a percentage of total subscribers cancelling subscriptions was only 5.5 per cent. That's 5.5 per cent before you include "a small number of large enterprise customers" who cancelled subscriptions over the financial year. When you include them all, churn jumps to 9.6 per cent.

Apparently investors should exclude certain subscription cancellations from Nearmap's churn metric as they were 'one-offs' including one customer subject to a court injunction in the US. For junior software-as-a-service businesses, churn is a closely watched metric by professional analysts as it provides insights into the strength of a product offering and how much ability a company may have to lift prices without losing customers.
Churn also impacts analysts' calculations over the lifetime value of a subscription portfolio and future profitability

https://www.afr.com/rear-window/nearmap-excludes-churn-from-its-churn-metric-20200820-p55nps

 

[Dona Ferentes]

In Trading Halt, waiting to respond to a J Capital report/ sledge

 

[galumay]

As a mate of Claude's, I have no real idea why he ever held a position in this one. Its always looked dodgy.

My language at the time was a bit provocative, but the writing has been on the wall for years with this business IMO.



2019

Anyone who was sucked in by that pile of crap that Nearmap put out today deserves to lose their shirts off their backs. I doubt anyone buying this stonk has even the most basic idea of how to read financial statements.

I suspect the only winners here will be the shorters.

2020

Yup.

A cessna with a box brownie does not make a viable business .

 

[galumay]

My first posts were in 2013,

The Tasmanian Government has their own imaging system - and therein lies the problem for me with NEA, I just don't see any competitive advantage nor any way they will be able to successfully monetise via subscriptions.

Its mainly for that reason they fell off my watch list.

Later, when they did report some growth

Looks like one i misjudged, I still dont understand how there is a market for their product and why anyone would subscribe - and following my rule of not buying companies that I dont understand means I have missed out on this one!