Z,
The CAN$ has been under pressure for some time now, and although a reversal in that trend seemed possible, it is beginning to weaken, which obviously affects whatever profit potential one may expect in a medium term investment in ICS.V
-There is an endemic problem for software companies in Canada with regards to their market positions. Typically the companies will list on the VSE as a first step to moving to a more senior market. The vast majority of the market for ICS's products, as well as other software companies, lay south of the border in the USA. You'll note in the press release about the merger that the new company Intinsyc Inc. will be US based in San Diego.
The merging with Annasoft, seems to be step in the right direction, and if possible a listing in an American exchange (such as the NASDAQ, out of the OTC), as a subsidiary of the Vancouver company, with operations in the US, may in fact shield the stock of any possible currency gyrations.
-This is a bit confusing - the new US company Intrinsyc Inc. will not be the subsidiary - it will be the parent. The subs will be Intrinsyc Software Inc. of Vancouver and Annasoft Systems of San Diego. As the press release notes:
"This merged entity, which the parties intend to register as 'Intrinsyc, Inc.' will be headquartered in San Diego, California - an ideal location for market access. It will be incorporated under U.S. laws, and will continue to be listed on the VSE while preparation for a U.S. listing is undertaken." Indeed NASDAQ senior board would be the target.
I understand that ICS does have an office in Kirkland, WA, (a logical move if you are going to do business with MSFT, their neighbor in Redmond I do not know how the merger will affect such plans. (Annasoft in San Diego ?).
As I understand it Annasoft has been a distributor of software, which is a marketing company (please correct me if I am wrong).
-Right on once again. In fact - "Annasoft is the leading licensing source of Microsoft operating systems to the embedded software market, including MS-DOSr, Windows 3.1r, Windows for Workgroupsr, Windows 95r, Windows NTr, and Windows CE." After the merger is complete, you can replace the Annasoft name with Intrinsyc Inc.
Intrinsyc is strictly a software tools engineering co. so to me this is a merger made in heaven,
-Right on Z!
market seemed to agree, now it seems to be taking profits...a retreacement ? Possible. Since from the low of $1.05 (CAN$) to the high of $3.38 (on a closing basis), a 50% retracement of the gain, would give us a possible retracement to $2.20 or so, (CAN$).
-Certainly lots of opportunity to take profits.
At this point I believe the market will be expecting reports of sales to validate current and future (possibly higher) valuations.
-Right on again Z. I believe that, once the merger is complete, we will see a lot more information regarding contracts and revenue targets.
I understand that a number of announcements will be forthcoming, particularly I will be looking for an announcement of revenues which if positive, will consolidate and further the advance, a slow advance but solid may turn out to be a better one than an explosive one, that results in profit taking that can exaggerate the down moves...
The above, only my opinion, which could be wrong.
-If you want to be 100% correct in your prognostications Z, you pretty much have to have next week's newspaper, but on balance, I'd say you've hit the nail on the head in your post.
Thank you
Bill |
