IGII

[eliteG]

IGII - IBSG International, Inc.

Profile:  IBSG International, Inc., through its subsidiaries, operates as a software provider, system integrator, and application service provider. The company, through its subsidiary, Intelligent Business Systems Group, Inc., licenses its digital service center software, which provides a range of digital budgetary and administrative, as well as commercial service applications, such as B2B, e-commerce, government to business, and enterprise business services on a single platform, known as the Biz World Pro. It provides its services to state small business development centers, business associations, and Fortune 1000 companies. The company's other subsidiary, Secure Blue, Inc., provides a Sarbanes-Oxley compliant and security software called Secure Blue Pro. Its other subsidiary, Intelligent Business Systems Development, Inc. operates as a software development, maintenance, and data storage company. In addition, the company has a joint venture with The Knowledge Institute of New Hampshire to develop a product called myVBI, which utilizes BizWorldPro as its core and provides approximately 1000 small business services supporting the concept of a virtual business incubator. IBSG International was incorporated in 2003 and is based in Celebration, Florida.

Sector:    Technology
Industry:    Application Software
Mkt Cap:       14.5 Million


Fundamentals/News

There are many eyes watching IGII.

Check out David Randolph's(writing under his real name Cesar Borja) fundamental analysis on otcbbcoverage.com:
http://www.otcbbcoverage.com/stocks/index.php?topic=30.0

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"IGII is the cheapest stock I ever saw. The stock isn't liquid enough for traders and speculators to notice or consider. If there's a technical signal to the upside one should follow it. IGII can be a 10 to 20 bagger from current levels."
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Also Julia(gmarc) and some other members seem to have been keeping track of IGII on our msg boards: http://www.3stocksonfire.org/trading/index.php?topic=2667.msg56619#msg56619


Technicals

IGII put in a technical signal by breaking out of its descending weekly trendline on volume.  Average trading volume has risen steadily since June of 2005 when the stock bottomed out.  
Long-term




IGII just broke out of a pennant after a triple bottom.  All  moving averages are below and the stock is ready to climb out.
Short-term




Trade Plan

With the fundamentals looking so great this stock is just waiting to be discovered.  Our main resistance area to watch is .25 and then the 52 week high @ .29.  If these are broken we are looking for .50-.75 area.  If earnings are released during this period.. the stock could sky rocket even more as we are looking for some very positive numbers.

We will buy IGII with limit .23 on 05/11

[bigdogs99999]

Interersting ... very interesting ... but be careful.  The company does not have nearly that amount of working capital.  At the end of the last reporting period, it had $1.3 million and a huge amount of accounts receivable. 

Also the company has only 4 major customers, and the company is recognizing revenue before it receives the money based on its stated standards ... see below.  That being the case, it sheds great light on the financial condition (which is not nearly as good as having the cash) and the growth prospects (that revenue is already recognized, and there will NOT be linear growth from the existing contracts ... projected growth is now simply a guess about whether new contracts will be signed and 4 customers does not a track record make).  Whenever I have to think real hard about what a balance sheet and report are telling me, I worry.   

From The 10KSB:

"The Company was able to increase its current assets from $4,630,471 in 2004 to $12,552,268 in 2005. Accounts receivable accounted for part of this increase. The cash position of the Company also improved in 2005 to $1,297,449 from $8,421 in 2004.

We currently have four (4) major customers, Knowledge Institute, the State of California, the Government of Nigeria, and IDC of Johannesburg. Our accounts receivables from these major customers are as follows at December 31, 2005:


Corporate Affairs Commission (Nigeria)                                 $  3,731,729
State of California                                                                2,632,500
Industrial Development Corporation - South Africa Initiative       4,250,000
Knowledge Institute                                                                  1,550
                                                                                   $ 10,615,779


We recognize revenue in accordance with Statement of Position, or SOP 97-2, Software Revenue Recognition, as amended, by Staff Accounting Bulletin No. 104, Revenue Recognition. The Company adopted Emerging Issues Task Force Issue No. 00-21, Revenue Arrangements with Multiple Deliverables. We recognize license revenues when all of the following criteria are met: persuasive evidence of an arrangement exists, the fee is fixed or determinable, collection of the related receivables is probable, delivery of the license has occurred and the customer has accepted the license (including the expiration of an acceptance period) if the terms of the contract include an acceptance requirement. Licenses are considered delivered once a license agreement has been entered into between the customer and the Company. Actual access to the software, due to the web nature of the software, is provided upon a mutually agreed schedule but the license fee due at time of conveyance and is not contingent upon the customer providing the hardware, staff for training or scheduling conflicts in general. Training and installation are included in the license fee in some cases and can be delivered at any time after the license has been conveyed. The on-line training (Virtual Trainer) is included at the time the license is conveyed and is available for every page in the System. No formal training on System use is required or provided. Trainign is generally restricted to System administration training. A portion of the year one license revenue and any subsequent years licenses are amortized on an annual basis commensurate with the start of the license agreement and then each subsequent anniversary date of the license and recognized generally in 12 periods (months) per year. The revenue recognition policy is as follows; 65% of the year one license recognized upfront to cover the costs related to the installation, testing, training and the initial investment/purchase of the license of the System. This revenue is recognized in month one. The original agreement on the purchase of the license of System was to be paid within a payment schedule over a period of time in order to recoup implementation costs. It was agreed that on an average taking 65% license fee would cover this cost, the initial expenses of the employees time on business development which includes assisting the customer with public awareness and providing initial marketing assistance and guidance in developing a list of prospect sub-license candidates as well as presentation assistance for the same and initial profit for the license sale. The balance in deferred would be maintenance costs for the remainder of the first year and gross profit. The average contract length is five years. As stated in paragraph 27 of SOP 97-2, the customer intends to utilize the system over that period of time as an integral part of their overall operation and as such can continue to be reflected as fixed or determinable. The length of time that a customer is projected to bring invoices current is 12 months and believed to be atypical for these types of contracts but is expected by management to reduce in time to no more then 9 months to be brought current at such time as our receivables become part of the customers accounts payable system. Based on paragraph 28 of SOP 97-2, our contracts are generally long term (greater then 12 months and payments on invoices are not expected to be longer than 12 months, the fee is therefore recognized as fixed and determinable as set forth in paragraph 28.

[Maestro]

Has anybody had his limit order at $0.23 filled yet? IGII touched that price several times today but the volume seems too low to get our orders filled.

[efallon28]

I got my intial order filled, but it was very small. I put in an additional order a short time later when it was still in the same price range, but it wasn't filled.

[Loffigus]

My order was not filled at all.

[signpro]

No fill for me yet.

[Maestro]

Could it be that there are simply not enough sellers out there?

Take 50 3SOF members, each wanting to buy IGII at $0.23 for $5,000. That would be 1,087,000 shares, a lot more than have been traded so far today.

[garym]

In my absolutely worthless opinion, I think most OB and certainly lightly traded stocks should only be enetered into if the fundamentals are so astonishing that future pps rise is "inevitable."

I am convinced that otherwise, the upward pressure from SOF buyers is what drives the price and then returns to no one around.  Good call with 23 limit today because of that, but I bet the reason igii is trading at 24 is just because there are lots of SOF 23 buys waiting out there!

As a whining aside, I am at an all-time low cashwise.  I seem to pick the wrong subset of recommendations and/or (and this has been more damaging) I buy SOF after the recommendation at higher prices only to watch them pull back.  CHID is a prime example, though I'm willing to hold given the confidence expressed by our mentors.

[SmartWrasse]

Does not sound like enough liquidity in that stock.  This volume at these low prices is not much money in a market. 

[Terliso]

I don't think 3SOF bought this one... not enough shares..

[trexkerry]

I had my order filled at .231, which is what I used for my limit.  Only ordered $1,000 worth though.

[rodri59]

Mine filled first thing this am at a limit of .23, like trexkerry I only started with 1000 shares as an entry.

[eliteG]

Hey guys.. we did not get our order executed on IGII.  We are still trying to buy IGII for the 3SOF portfolio and I will update later with what order we are trying to use.

[eliteG]

IGII is acting just like a strong fundamental stock should.. not many sellers for our limit order even though this level puts most of this years IGII investors in profit.  The team talked about it tonight.. we still think we have a shot to pick up this stock with a nice limit order.

We will buy IGII with limit .245 on 5/12

[eliteG]

Well IGII continued higher and we did not pickup our position yet.. although this could gap and run as we are getting close to .29 breakout we must be disciplined and try again to pick up with a nice limit order.

We will buy IGII with limit .265 on 5/15