Mark Gomes bought almost 1M ITMSF Shares. His email is below:
On February 9, Invesco announced the departure of Ian Hardacre, portfolio manager of Invesco's billion-dollar Trimark Canadian Fund. Trimark owned approximately 8 million shares of Intermap (ITMSF). According to my sources, Invesco did not attempt to contact Intermap. Instead, they simply hit the sell button.
So, 8 million shares flooded of Intermap the market. Incredibly, this happened on the heels of Intermap executing a $175 million megadeal.
For those who recall, ITMSF topped 60-cents after announcing the original Letter of Award. Obviously, a completed contract is more valuable. Initially, the market responded properly. Intermap instantly doubled... and I was still buying.
However, Invesco's shares were too much for buyers to quickly absorb. The stock lost momentum and buyers (including me) lost conviction in the near-term direction of the stock. Surely, many of us said, "If someone is selling, let them sell. I'll buy when they're done."
With the buyers sitting on the sidelines, Invesco's selling drove Intermap's stock price down.
With the confirmation of Intermap's $175 million megadeal, I believed that the stock would move toward $1 per share. Instead, Invesco rained on that parade. However, selling shareholders doesn't mean that a company is worth less. Most of the time, it just makes the stock more attractive (cheaper). That is especially true when the selling is forced or blind, as is the case here.
Nonetheless, based on what I have gathered, the selling is done (or very nearly done).
Further, there were/are a number of investors who have been monitoring this situation. It became something like a high-stakes game of chicken. Nobody wanted to buy the stock if Invesco is going to push it lower. However, if everyone waited until Invesco's shares were gone, there could be an incredible rush to buy the shares. Considering that the stock's fair value could be triple its current price, I suspected that "a rush for the shares" was exactly what was going to happen.
My philosophy is to not play those games. I like to buy stocks when they're cheap (even if it's a little early)...
...so I stepped in and bought close to a million shares between Thursday and yesterday.
I have more information to share, which I'll provide in a video later today. For those who want the short story now, I have seen some of the contract paperwork. The structure gives me confidence that the deal will be funded in relatively short order. I also believe that this deal will put pressure on other potential customers, because Intermap can only handle one more of these deals without expanding its capacity.
Because of these things, I view Intermap as a less speculative stock with very attractive potential reward relative to the risk. Many risks still exist, but I'm comfortable with them. If I lose, I lose... but considering the progress that has been made, there's no way I could sit on my hands without increasing my position.
More later. Stay tuned!
