Transense Technologies Share Discussion Threads

[amt] 22/9/2016 08:09

Sounds like he expects profitabilty next year. Value of IP id intetesting. Recent licensing deals shows it hax genuine value. Could be ten or twenty times the 5.5m as what has been sold is only a small slither of what they have.

[timbo003] 22/9/2016 07:58

New CEO interview on Directors talk

[dieseltaylor] 22/9/2016 07:56

BG - Absolutely.

As to 5 to 1 or 50 to 1 I cannot say as to which would be better. Perhaps the logic can be asked , or was asked yesterday, and we will get a posting on it.

[bad gateway] 22/9/2016 07:46

I liked the idea of consolidation here seemed like the share was growing up but would say that they could do with following up on the potential of their sensor tech with contract news round the same time. That'd help support the share price whilst they do so.
Have noted their strong cash position and prediction of having enough funds to reach breakeven..

"At 30 June 2016 the group had net cash balances of GBP3.65m (2015: GBP0.47m). A further US$0.50m (or approximately GBP0.38m) was received in licensing revenue in August 2016.

Whilst it is anticipated that the Company will continue to consume cash to finance on-going activities in the short term, the directors consider that there are sufficient cash resources available to reach a break-even level of revenues, and accordingly are satisfied that the Company can continue trading as a going concern for the foreseeable future.

Would investors agree this is likely to be the case?

[piggyinthemiddle] 22/9/2016 07:36

I will be voting against the consolidation fwiw.
Much too drastic,a 5 to 1 ratio would have been much better bringing the number of shares down to circa 100 mill,present share price to about 10p leaving plenty of headroom to increase.
Cannot really follow the reasoning for a 50 to 1 split.

[dieseltaylor] 22/9/2016 07:01

Glavey,
Firstly I have to accept yuor proposition that the price will go down and that I remain unconvinced on.
Secondly, I have always believed that what is good for the company is not necessarily good for individual shareholders.

My gut feeling is that this is probably a good idea so will be voting for consolidation.

I also take a view that generally speaking Boards need to be trusted. If you cannot trust the Board either get rid of them, or sell out when convenient. Which I did successfully on AFC who at the time had an executive set with interesting track records.

[timbo003] 22/9/2016 00:17

I only hold EIS shares acquired in the last placing and I'm mildly positive about the consolidation.

I certainly do not believe that the share price is likely to fall as a result of the consolidation, it is just as likely to rise as it is to fall.

Irrespective of whether I think the share price is going to rise or fall, I am unable to sell and buy back (or buy more and then sell) during the three year holding period as the "first in first out" rule applies for EIS qualifying shares. The only exception would be if I held additional TRT shares in a wrapper such as a SIPP.

[glavey] 21/9/2016 23:49

dt,
It's simple. Shareholders who have bought in the market can sell down now and buy back later at a lower price post consolidation. Holders of 'EIS shares' may not have that flexibility without the possibility of loosing EIS reliefs.

[a0148009] 21/9/2016 23:41

Glavey - you make some very good points and psychologically 50 share at 2p are more comfortable to hold than 1 at 100p.
AO

[dieseltaylor] 21/9/2016 22:34

Could you explain the EIS prejudicail comment please

[glavey] 21/9/2016 22:07

In TRT's case the proposal of a 50:1 share consolidation will only result in a collapse in the share price whilst the outlook continues to be 'jam tomorrow' until such time (if ever) that there is any 'jam today'. This is invariably the case with small caps where the share price has fallen consistantly over many years.

The fact that TRT have felt the need to 'glam this up' by dangling a carrot, viz. "enabling the payment of dividends from income or return of capital" is a clear indication of the issue and that they realise it. It does not take a consolidation to pay dividends or return capital. Consolidations only act as a cover up of past poor performance to avoid 'penny share' syndrome and are more often used to enable the raising of further capital. (Is that a message TRT wish to send out at this moment? Is this connected with the investor event held today?)

If the outlook for TRT is getting better, then this consolidation is unnecessary. It does not prevent the other parts of the 'tidying up exercise' should be removed from the agenda.

It is the reason behind the share price dropped today. It's always a 'sell' flag and significantly prejudicial to those holding EIS shares.

The argument that it will 'reduce the spread' is a fallacy. Intermediaries will still need to earn their %age and the 'risk' doesn't alter. It's no more tempting to buy (in fact psychologically less so) but it can make it appear more tempting to sell. One doesn't need to argue this, one just needs to look at what has happened in past similar cases (of which there are many - check out TRP as a fairly recent example.)

It's no good waiting to vote at the AGM as it will be a packaged proposal including the 'carrot'. Shareholders would do well to make it clear to the board that this 50:1 consolidation should be dropped immediately. Those that don't will find the consolidated share price waning in short order.

[arthur_lame_stocks] 21/9/2016 21:39

I went to the presentation. Didn't learn much new but one thing I did learn was that if sales are around £2.5m this year they expect to be cash flow neutral which I took as a big positive.

They seem fairly bullish but then I guess they wouldn't have an investor meeting if they weren't.

Got to handle an I Track 2 and had a few glasses of wine.

Not much else to add really.

Arthur

[amt] 21/9/2016 20:48

Did anyone go to the presentation ?

[dieseltaylor] 21/9/2016 20:23

Certainly, being a shareholder since 2000, it has been a rough ride. It must be said that the City and Mr Perry sold us a pup but fortunately the shareholders gathered together and got rid of the Board and re-funded the company.

Patents. Yep it sure has a few. And fortunately they have been refined on the way to become improved and incidentally extending the core time span. I know the new Board had a cull as keeping them all paid up costs.

I think the ice is well and truly broken now. I think iTrackII is probably built to an industry wish list so should be even more popular than it has been and with a track record behind it. Extending to the US and Brazil should be very much easier given the record elsewhere.

Translogik in its own right is a very well-positioned little baby. For companies that use a range of tyres and do not wish to be beholden to Michelin or Bridgestone this makes a good choice.

The iProbe seems,with 43 countries sold to,on its way to being a bit of a standard.

The SAW side is finally looking to be where it could have been 2-3 years ago when all companies pulled in their horns in 2008. It really did not help innovative techs selling into a conservative and cautious market. I am quite excited and if I were a wag I would be suggesting a 50p target within a year. More straight-faced I actually think it could be quite a bit more post-consolidation and some news.

[a0148009] 21/9/2016 19:27

dieseltaylor - thanks for all that very helpful.

I am sure you know TRT was floated begging January 2000 close to the height of the DotCom boom somewhere in the region of 75p and hit 750+ crashing over the years to the current level.I read somewhere that the company had a large number of registered patents relative to size, do you have any information on these if true. There are many small companies that have great prospective technology/ideas but find it difficult to break through into established OEM's who begin to show interest when competitors are sniffing around.

It does look as if they are now breaking the ice and the future looks rosier. I have been involved with many private companies with the same problem, one in particular a software developer took 10 years to make a breakthrough with several rounds of finance on the way to stay alive.
I am not too keen on consolidation at this stage it is often reported that institutions do not like penny stocks but there are plenty of smaller company collective funds that are not shy of them.
AO

[spursspurs] 21/9/2016 16:26

strange, can sell as many as i like on a dummy trade but cant even buy 10000!

[dieseltaylor] 21/9/2016 14:55

In a timely article this addresses piezo-quartz effects and benefits. Think the same thing but without having to directly wire the sensor for our SAW quartz sensors. Not that I can claim we do all the same things but the longevity and cheapness in mass use are all there.

[dieseltaylor] 21/9/2016 14:34

I have picked through the bones of the good bits looking for clues and also what might be proved such as who introduced new machines incorporating our tech during first-half of 2016.

One thing of significance I should have known years ago was that wind-turbines are insurable and rather like ships have to meet criteria to be insured. It would seem that adequately monitoring them is a pre-requisite. No doubt already being done to a degree but a better or additional mouse trap is probably useful.

Anyway here are the juicy bits:

"As Original Equipment Manufacturers (OEM s) seek ever more data on a real-time basis to optimise the performance of their products, accurate and frequent measurement becomes increasingly important. The world’s largest and most successful companies in these fields are recognising SAW as one of the enabling technologies in developing the “Internet of Things” in this arena, contributing to a vision by which machines are networked with embedded sensors to optimise performance using real time analytical tools, algorithms and interactive controls.

Technical and commercial engagement with select global partners for other high volume applications are ongoing,with more than 20 live projects across multiple divisions of six major companies. These projects are generating sufficient short term revenue to cover internal R&D costs.

In the second half of the year, pilot production commenced of sensor kits to measur
e temperature, vibration and torque on a new range of industrial equipment recently launched by a large European OEM. Ramp up is expected to be gradual over a two to three year period as the new technology is taken up by end users. Several other applications are under evaluation with the same customer.

We continue to explore mass market automotive applications with a select group of global passenger car manufacturers, and believe that SAW sensors have unique capabilities to provide performance improvements in several areas. The disruptive nature of the technology does, however, give rise to understandable caution in the rate of adoption.

The relationship with General Electric Company (“GE”), as signalled previously by the completion of a Memorandum of Understanding announced in May 2015, has continued to flourish.

We are actively collaborating on several development projects that are progressing towards commercialisation projects, covering multiple divisions of GE. One of these projects resulted in the completion of a licensing agreement, announced in July 2016, for non-exclusive use of Transense IP in certain specific torque applications for an initial fee rising to US$0.75m and a perpetual royalty on future production."

[dieseltaylor] 21/9/2016 14:22

Man speaks sense. Far too much short-termism in the City.

[dieseltaylor] 21/9/2016 12:45

That I can agree with. Perhaps we need a chat with Mr. Woodford as to what he thinks we are worth : )

[sojourno] 21/9/2016 12:40

You mean, sit back and wait for royalties? I'm sure you don't!!
I don't mean indulging in empire building but simply cresting the framework to improve our engineering capability, cater for a US demand for our stock (which will come if much of our income is from N/S America) but most importantly create a funding mechanism that is anti-dilutive to AIM shares. That and AIM is stale for us.

[dieseltaylor] 21/9/2016 12:25

I thought the idea of the company originally was to sell patented technology and generate an income stream not to indulge in empire building. I would buy a different company for that.

[sojourno] 21/9/2016 12:19

I prefer acquisitions to disposals; and the means to fund them.

[dieseltaylor] 21/9/2016 11:48

News flow should be good as we have the iTrackII being launched and I do not doubt that all its benefits derived during the introduction of the first iTrack are making the product more desirable. It also comes with a history of happy customers so it would seem strange if it is not adopted more quickly.

The Saw sensor side outlines 20 areas where it is being deployed with six major companies. I have posted the Siemens patent and that indicates how the devices could be incorporated, GEC have parted with some money for a specific use.

The use of the term partial disposal is interesting and I find that encouraging as it indicates some flexible thinking as to how we monetise the tech/patents. After all most of us would be grateful for getting income up-front whilst we remain alive rather than awaiting the share price to catch up with improving income or prospects.

I have in the past mentioned halving the business into two profitable companies and having shares in each as a way for shareholders to extract value whilst keeping an interest. Anyway perhaps I read too much into the wording. : )