Srt Marine Systems Share Discussion Threads

[hjb1] 14/10/2016 08:52

homework, ha ha ! obviously a lot better than you do..lol

[kalkanite] 14/10/2016 08:48

I expected a much more enthusiastic response also so have decided to top up instead as SRT appears to be greatly undervalued.

There was a slot on the news last night about careful sustainable fishing of the arctic region as the European region has decimated fish stock due to over fishing. I don't think you can underestimate the importance of this, especially where some economies fishery adds up to 10% (IIRC)to the overall economy. Where next for any illegal fishing currently in Saudi? Other nations will follow as the benefit of an MDM system become obvious, particularly when given the national security and safety of vessel traffic that MDM systems provide.

Apologies if this sounds like ramping but I am very bullish about SRT's current pipeline and future prospects.

[donemyhomework2] 14/10/2016 08:47

Hjb do you understand the difference of lots from Loads?

[eagle eye] 14/10/2016 08:46

hjb1, No value attached to the order so not many people aware of the significance.
Well done to all at SRT....another national programme out of the starting blocks.

[hjb1] 14/10/2016 08:29

I expected more IMO!! so you reckon 2 (25k sells) is lots..lol

[donemyhomework2] 14/10/2016 08:20

Nearly 5% up after lots of 25,000 sells is not muted at all IMO.

[hjb1] 14/10/2016 08:16

somewhat muted market response so far, Maybe you will get your way LaVal.lol

[clarkey26] 14/10/2016 08:08

Don't get me wrong, I agree it certainly validates the concept of what SRT are doing and highlights the importance of tracking and monitoring in the region.

[techno20] 14/10/2016 07:55

This is taken from the last investor presentation in July, showing 4 Middle East opportunities. Shows the potential income opportunity. Guessing this is probably the last of the four. Saudi is hugely influential in the region, so hopefully others will follow soon....

PRIMARY VALIDATED SALES OPPORTUNITIES - PROJECTS
Region
Country
Description & Status*
Potential Value*
Middle East
Confidential
Following successful Bahrain reference – project being considered as a single, unphased national program. In direct discussions with relevant ministry
Total value ~ $30m
Middle East
Confidential
Completed extensive trials and undertaken consultations on requirements. Awaiting formal tender process for MDM System – implement in phases over 2 years
Total value ~ $20m
Middle East
Confidential
Significant enhancement to an existing national MDA system through full implementation of an SRT MDM system. In project evaluation phase.
Total value ~ $30m
Middle East
Confidential
Update of existing vessel monitoring system. In early technology and system functionality specification stages
Total value ~ $15m
Revenues – Future Opportunities & Drivers

[lavalmy] 14/10/2016 07:54

Clarkey

It shows a bit more than that. They have to start a roll-out somewhere and small is probably best to get over teething problems. What is important is that they have decided politically to monitor all 70,000 local boats. Practically, I imagine there will be issues to address, and no doubt SRT and Elcome will have thought of many of those.

[philjeans] 14/10/2016 07:53

But it all counts and it all helps.

Very good news!

[clarkey26] 14/10/2016 07:47

Thanks for confirming assumed that was the case. I guess order shows progress but also how slow these things can be even when just for AIS to go with existing infrastructure

[lavalmy] 14/10/2016 07:34

Saudi already have the base station infrastructure, I understand, and have had for a while. It was mentioned as doubtful whether they would need satellite tracking as well. I suppose if they see significant gaps in their terrestrial coverage, they might want satellite coverage.

[clarkey26] 14/10/2016 07:28

AIS order but doesn't seem to be anything around it from SRT to assist tracking or am I missing something?

[lavalmy] 14/10/2016 07:18

Hopefully the market will look at the size of the order (small) rather than the size of the roll-out. We shall see at the open. But it certainly looks like the big bucks will be next year and thereafter. Suits me.

[donemyhomework2] 14/10/2016 07:06

Brilliant!!!!

[dieseltaylor] 12/10/2016 11:41

If you are in the field of mandatory equipment and you happen to be the tech/product leader things should be pretty safe. Provided of course you do not over-extend or price too cheaply.

I am trusting the Directors on that sort of detail : )

[boadicea] 10/10/2016 20:05

It's very difficult to value a share that could ...
1) be the subject of a takeover bid tomorrow
2) require an emergency cash call (or go bust) within a year
3) soon land a series of contracts putting it on a potential p/e of ~1
4) experience any combination of the above.

OK - I'll admit that's a rather provocative and broad brush analysis but readers will probably understand the scale of the unknowns in relation to the future of SRT.

Currently the share price is almost entirely an optimism barometer and the present level says much for the durability of hope over experience.

[yump] 10/10/2016 14:17

It was an oblique reference to these arbitrary share price levels that only mean something because our brains seem unable to cope with processing some other price.

[eagle eye] 10/10/2016 13:00

yump, Its still a very big move since March.
If you look to double your money every 4 years (IRR 19%) or every 3 years (IRR 26%) and you achieve that in 6 months, then I think the share price warrants a breather.

[yump] 10/10/2016 10:58

Its actually quite disappointing to see the human brain, after all its evolution, ending up generating a share price half way between 40p and 60p.

Reminds me of that quote:
"We wanted flying cars, instead we got 140 characters"

[eagle eye] 10/10/2016 09:27

More keen buyers this morning following Friday's strong share price rise.
Early doors 47-48p +3.5p.
Hopefully current strength is an omen for happy days ahead :-))

[lavalmy] 06/10/2016 15:32

Papy

A good point when talking about complex, long-term contracts in general, but I don't think it affects SRT that much. I am qualified as a Chartered Accountant as an aside.

If you remember the Indonesian deal, Phase 2 would not start until and unless Phase 1 had made the customer happy, yet all the revenue was recognised, somewhat hastily, last FY. Where it might get complex on the revenue recognition side is when SRT are bundling all sorts into one contract with an overall gross margin. Some deliverables might not actually deserve to be recognised at a high GM, but it will all come out in the wash.

In any case, it will not be necessary for SRT to calculate % completion, cost, margin, less reserve as they go along, and have large WIP balances with corresponding deferred income etc. The contracts will be lumpy and revenue recognised when product is shipped.

[papy02] 06/10/2016 15:15

I've not spoken to SRT, but based on the more dubious privilege of speaking to many accountants in my working life:

For a complex system like an MDM sytem + ais transceivers, a "deliverable" might be "passing Phase 1 customer acceptance test".

Until this is "delivered" the accountants may not allow revenue recognition, even for stuff that has been invoiced and paid for.

Simplistically this might apply for anything where there is a material risk of the revenue having to be reversed.

Whether that would include simple shipments of identifiers etc, as part of a system solution sale, would depend on how the contract is structured (i.e. Would the customer be lumbered with that kit even if the overall solution fails the Customer Acceptance Test).

More predictable risk (eg of return of a small % of h/w as faulty) would be handled by deducting an appropriate reserve off the invoiced revenue prior to revenue recognition.

Its possible ST is on a painful learning curve about revenue recognition on complex contracts.