Small Cap Favourites: Nearmap Limited
We published a trading update on NEA shares following the decision by Microsoft to acquire LinkedIn shares. Only Invast clients were provided the exact entry and exit points into the trade. A few days after our trading update, NEA announced an important partnership that forms part of our underlying thesis that this business is not just about its ability to generate earnings, but its value to a much larger player.
NEA this week announced a new partnership with OmniEarth, the US based emerging leader in the Earth observation and geoanalytics industry, for nationwide high-resolution aerial imagery. The agreement provides Nearmap with access to a larger and more diverse range of customers in the US including water management, property management and insurance. NEA said in its release that “…OmniEarth will utilise Nearmap’s extensive image library and add value to their customers using artificial intelligence to determine attributes associated with properties…”
Artificial intelligence is a huge market and NEA has been given a foot in the door to one of the most attractive markets since the internet was created. Proprietary machine-learning algorithms and artificial intelligence techniques allow OmniEarth to quickly and very accurately analyze imagery over large areas on a parcel-by-parcel basis, but lack of high-resolution imagery was limiting their ability to scale nationwide. Before the agreement, OmniEarth was chartering aerial imagery on an as-needed basis – which is impractical for nationwide coverage.
Nearmap has increased American coverage over the past two years, captures imagery for nearly 70% of the US population at 2.8-inch GSD – far better than satellite imagery providing unrivaled clarity, precision and detail. Watch this space.
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Invast is very well placed to bring you some huge opportunities in the coming months. Execution costs for ASX stocks are 0.06% (6 basis points), which means for a trade with a notional exposure of AUD $10,000, the applicable commission is only AUD $6.00.
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Chief Market Analyst
Peter Esho is a member of Invast’s Investment Committee and Chief Market Analyst at Invast Financial Services in Australia. The Invast’s Investment Committee constructs professionally constructed global thematic portfolios of Direct Market Access (DMA) CFDs over highly liquid global shares and ETFs through its new PortfolioInvestor platform. Since 1960, the Invast Group has grown to become one of the largest and most successful global brokerage firms, offering state-of-the-art trading technology and unparalleled service catering to all levels of traders.
Invast Financial Services Pty Ltd (ABN 48 162 400 035) is regulated by the Australian Securities and Investments Commission and holds an AFS Licence 438283 which authorises it to carry on a financial services business in Australia.