Quartix Technologies Share Discussion Threads

[hydrus] 24/9/2016 18:07

I agree re QTX Michael and your more general point. It's a reason to not buy in but for me not a reason to sell. I wouldn't tend to sell a position because it's become temporarily overvalued unless I think it's a totally absurd rating. I'm no good at trading in and out so prefer to stay in if the company is one I like and as I said above just expect lower returns in the near future.

[michaelmouse] 24/9/2016 17:51

"no question QTX is very expensive, along with a number of other high quality growth stocks across a range of industries. However that's not a reason to sell for me....."

It depends on your time horizon, and the rate at which the company is growing.

Imo the rate of growth is way too low at QTX to justify the heady p/e ratio both historic and forward. The dividend payment is less than 2% at this price and isn't even adequately covered by earnings (less than twice).

Investors are paying far too much for growth at the moment. In a different sector BOO is also an excellent example of investors believing that the share price can continue to infinity and beyond. The p/e ratio is far too high for the rate of growth imo.



A headline in today's FT reads:-

"Clothes buying starts to fall out of fashion"

It's worth a read. Apologies for OT with the BOO example.

[apad] 23/9/2016 09:35

Hi H,
My take on QTX (unlike my daughter's who agrees that the arena is crowded and chaotic) is that it is the careful matching of software function to customer's back office requirements that differentiates it from the promise everything in all directions companies (TRAK) or the big beasts.
This point seems to be lost - or perhaps I'm wrong, but that rarely happens.
apad

[hydrus] 23/9/2016 09:15

Thanks for flagging - no question QTX is very expensive, along with a number of other high quality growth stocks across a range of industries. However that's not a reason to sell for me, but perhaps a reason to expect lower returns over the near term.As long as they keep increasing sales at a good rate I'll be here. Nice recurring revenue model in well run telematics companies - the article seems to question whether than is growth available for telematics companies, completely ignoring the fact that QTX is growing.

[apad] 23/9/2016 08:26

www.stockopedia.com/content/how-do-you-value-a-telematics-business-125662/

[apad] 14/9/2016 14:33

Different animals in the same cage in my opinion.
apad

[cheshiremoggie] 14/9/2016 11:56

Fair enough.Wrt Trakm8 - certainly the share price isn't happy at the moment but you have to admit that with trakm8 growing much faster organically than QTX it is only a matter of time before the market caps converge. No reason why both companies can't be successful though.CM

[apad] 14/9/2016 09:03

I think M does not want to manage it, but it can carry on without the header being updated. Not that there is much to say at the moment.
Just had a quick dip into the TRAK board. Not a happy place, I feel sorry for them.
apad

[cheshiremoggie] 04/9/2016 16:19

Marty.Why a new board? CM

[hydrus] 24/8/2016 10:37

Well I'm not surprised by the pullback, was looking extremely expensive.

[iamkhan] 22/8/2016 16:23

Chaps I'm a holder of QTX and I've been watching the ticker periodically today and there seem to be loads of buy orders go through... I don't think the rising trend will break.

How far do you think this will go?

[hydrus] 22/8/2016 13:47

Fair enough, will be interested to see how it pans out. I'm no longer a holder.

[apad] 22/8/2016 13:38

The contracts do look good, but the acquisitions are worrying. My judgement is that TRAK management don't know what they are doing, but are promising in all directions at once.

I might be a little more laid back if I had bought at 32p :-)

apad

[hydrus] 22/8/2016 13:10

Good luck if you do - it's a very different board from when I first invested in TRAK but then again, it's share price was 32p then and no one was interested. Much more risk involved now but also some interesting contracts.

[apad] 22/8/2016 13:04

Me too - great ride :-)
apad
ps
top-sliced some FEVR at 580 - what a pillock!
pps
Tempted to mosey over to TRAK and mention how good QTX's organic growth strategy is, but suspect the urge might be caused by a troll virus infection.

[hydrus] 22/8/2016 12:56

All true and why I'm invested (plus I am a big fan of recurring revenue) but doesn't take away from fact that it's PEG ratio is over 3. Anyway no point in me trying to be clever and trade because it's just not my strength. Sit tight and hold on.

[apad] 22/8/2016 12:50

I wouldn't bet on it, H.
Organic growth, cash, foreign earnings, conservative management and a rapidly increasing divy.
Looks like a Full House to me.
apad

[hydrus] 22/8/2016 12:27

Blimey this is expensive now. I'm a content holder but wouldn't be surprised to see a fairly significant pullback especially if wider market weakens.

[commiesy] 17/8/2016 19:27

Is the increase of the past couple weeks off the back of low volumes? Surprised by the recent uptick given the results were solid but not amazing. Their US business is still relatively small and the currency tailwind from weak pound won't impact results massively, imo.

[betelgeuse1] 16/8/2016 09:47

looking like going over 4 quid

[apad] 03/8/2016 17:35

Published this on the VLG board, FWIW:

"The telematics business is interesting - there are lots of players, big and small. QTX and TRAK represent polar opposites amongst the minnows. QTX is cautious, organic and TRAK an ambitious CAPEXer.
I have a small, very profitable, holding in QTX but am not planning to increase as I believe that there are too many existentialist threats to the sector.
Essentially I believe that there is a major tension between the vehicle producers and the big software companies. Whilst the vehicle producers keep big software out of their in-built telematics there is a gap in which small companies can produce software functions, on top of add-on hardware, that feeds valuable, processed data into the back office and accounts - as well as monitoring use.
Health Warning: this is my view and I am not an expert. My daughter, who is involved in the RAC's activities, thinks I am nuts to own anything in the sector."

I'd be interested in a contrarian view?

apad

[sophiegb] 27/7/2016 14:20

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