Srt Marine Systems Share Discussion Threads

[kendonagasaki] 01/8/2021 20:12

More jam tomorrow.That's if Simon Tucker has not spread it on its toast already.Greedy Boy?

[extrader] 01/8/2021 18:29

Thank you for the 'compare and contrast'.

I guess I'm just getting a little bit antsy about the likelihood of 4 contracts landing in the next 8 weeks !

[lavalmy] 01/8/2021 17:51

i remember Paul Scott being very keen on Indigo back in the old days of the Motley Fool. I didn't look at it in much depth.

But 'mostly what is cheapest' is where SRT is at. A distinction has to be made between what these governments are trying to do. Monitoring a couple of thousand of fishing boats which go out to the high seas is more cost effective with a satellite system such as CLS operates. Monitoring either all their fishing vessels or all their vessels no matter what the function currently requires a shore-based system to be cost effective. Hence the Philippines turned down the incumbent CLS offering, with its attendant cheap loan, in favour of SRT's system which they have to pay for themselves. (I noticed that people have stopped whingeing about the size of receivables on the balance sheet. Now they will whinge about the lack of them).

Whether the further phases in the Phillipines cover 100,000 more vessels or 400,000 is moot. But they have the infrastructure in place and paid for. How much cheaper can a roll-out get?

[extrader] 01/8/2021 15:51

.."It’s extraordinary the share price did what it did-not complaining of course..."

I think that's what's technically known as 'damning with faint praise'.

Reminds me in some ways of Indigovision (IND) which had world-beating security cameras, regularly actually won contracts at reference events like the Olympics, yet still never gained commercial traction.

It was eventually acquired for a fraction of its worth.

Ho hum.

This post says it all :

.."Kind of gutted. I know everyone else is dancing a jig at 405p and it's no disgrace given the price was 100p a few years back... plus COVID-19.

But all I can think of is that Motorola Solutions(MS) paid $1,000,000,000 for Avigilon a few years back. And are paying a paltry $37,000,000 for IND. Apparently the "Acquisition will provide Motorola Solutions with enhanced geographical reach across a wider customer base."

I'm not sure if MS had a security camera business before buying Avigilon but I don't buy the argument that having spent a billion dollars they need to buy IND for a "wider customer base".

So, this for me is the final proof that IND always had the best overall IP Security Camera solution and held that status over the past 20+ years. MS are buying the IP: and on the cheap.

Tech Stuff: IND have IMHO -
The best underlying Distributed Network Architecture meaning a genuine Internet like solution. Everyone else just replicates the original Analogue infrastructure. Makes IND gear more fault tolerant. Kind of critical for security.

Probably the best Video Encoding. This helps keep framerates up and storage costs down.

Possibly the best cameras at various stages of their history (proof being the video where the compared the best of the rest in low light conditions - IND cameras were best). I dare say camera quality would fluctuate over time.

A very solid Control Centre offering. Again, I suspect that all suppliers have their strenghts/weaknesses in software.

True ONVIF compliance: meaning interoperability with other security gear (buttons, alarms etc). IND board members explained to me (at AGM chats) how their competitors mostly hacked together solutions - I'll take their word for it. A few years back though.

And finally, one of the few companies who can provide an end-to-end solution from cameras to storage. Most competitors do bits and pieces so clients have to 'build' a solution from kit that 'hopefully' works together. And who to blame when something doesn't work? So buying IND gear is much simpler.


Competitors would disagree with some of the above but I think this purchase proves it beyond reasonable doubt. MS need IND because the billion dollar Avigilon technology isn't good enough.

Torment yourself by multiplying your cash to come by 27. ( 1B / 37M ). A better Technical Solution for 3.7% of the price.

Sigh.

Yes, I know, it's not about what you can do it's what you can sell and the profits that accrue. But that's my point. IND led the world around 2005 and threw it away... and I've no idea how they managed it. I don't think it was incompetence, or stupid decisions, probably just an accumulation of small mistakes or disadvantages.

Possibly it was no more than IND charging more for what was the premium offering and most buyers are run by Finance departments who just focus on what's good enough and mostly what is cheapest.

Long sigh again... still, IND is my biggest holding and I've probably made at least a 5 bagger once loads of dividends are included. But..."

Let's hope history doesn't rhyme, never mind repeat.

SRT really has to get something over the line, pronto.

IMO

[pinkfoot2] 01/8/2021 14:45

You can’t knock the team for effort-but who verifies a VSP when it’s painfully obvious, by time passage, that’s it’s not priority for customers?It’s the VSP jam of course which maintains and fires shareholder interest, plus a timely but small share purchase and IC comment.A tad contrived but it persuaded buyers to come in, despite a horrible loss,a big Covid loan, and missed banking covenant.

It’s extraordinary the share price did what it did-not complaining of course.

[birdie12] 01/8/2021 12:34

I agree pink. The company has been decent in the r&d dept. They just cannot sell the things they dream up in enough quantities. All these govt's just kick the can further down the road it seems. Too many are just not too bothered about fish, maybe a bit more on security.
As for the very silly vsp, well, enough said on that!

[pinkfoot2] 01/8/2021 11:46

Sorry CM but you have just confirmed what I have been saying.The use of the words if, imagine, when and hope, all in one short post.

The company has a small turnover in an as yet unproven market-it needs proper contracts, with real cash, not more jam and spin.

[countryman5] 01/8/2021 10:13

SRT is much bigger than ST. If anybody has a question, I am sure that others would be more than happy to answer those questions. Obviously inside information would not be available. Key players who can give information include Richard Hurd, Neil Peniket or Kevin Finn. These people will be available to meet and question at the AGM but I am sure they will be pleased to hear from shareholders at any time.

[countryman5] 01/8/2021 08:27

A few days ago President Duterte flagged up his intent with regard to MDA. I am hoping that this is about to translate into a very large tender / contract for the coastguard. As with BFAR, I imagine that details of the tender will first appear with Philgeps. Keep watching.
If (and when) the £75 million of contracts are in the bag, SRT will be proven as a major player on the global stage and take over intent will begin, with numerous players coveting the prize.

[pinkfoot2] 31/7/2021 16:19

All roads lead to ST-always do.Either he’s on it or he isn’t.I doubt Finncap know anymore than any of us

[countryman5] 31/7/2021 11:15

LAV.
I imagine that you have ST's email. May I suggest that you contact him re. the above and then update this site?

[lavalmy] 31/7/2021 10:59

Doubt it myself, C5. They have been going on about contracts ready for signing for years without any repercussions. Due diligence requirements are slight on AIM and you probably have more protection from the auditors who at least have some duty to ensure that porky pies are not told in the Chairman's statement. Nomads don't. The solicitor will be nowhere to be seen.

However, I think they have these lined up and the following three, with more on the horizon end 2022 beginning 2023. That should provide a strong and reasonably consistent revenues for the next few years, as the other streams I mentioned yesterday start flowing.

[countryman5] 31/7/2021 10:33

'FOUR of these contracts worth £71 m, over an average two-year delivery period, should be signed in the next few months and deliver meaningful revenue in FY22).
The above statement would require the viewing of the relevant paperwork by the company solicitor as well as by finncap, for obvious reasons.

[fft] 31/7/2021 08:30

C5,. Finncap won't have seen any paperwork regarding contracts. Their involvement will be listening to what ST says to them. Their estimates come from guidance issued by the company.The paperwork will be far too confidential and finncap are not being paid enough to spend ridiculous hours needed to verify any paperwork that would be needed.

[pinkfoot2] 31/7/2021 08:24

Well a fundraise makes sense when you burden the balance sheet with debt-which is where it is now.A contract would help cash if it delivers said cash.Whatever, there is a big hole to fill and we know that the loan has already broken covenants through non performance.

CM-there are no institutions here because the journey has been long and painful.They lost patience years ago.I suspect the PIs comprise and aging army of middle England industrialists.No bad thing of course.

[glavey] 31/7/2021 03:27

"...think that the market might - just might - be getting softened up for yet another fund raise"

Inflation starting to affect the price of Jam?

[pldazzle] 30/7/2021 22:47

countryman - spot on, my thinking exactly (except that, depending how things go, it would not surprise me to see a higher price than 65p within the next 2-3 years)

[countryman5] 30/7/2021 22:03

This is an unusual company, in numerous ways. There are no institutions listed above 3%. (Although I suspect that there are a few below that figure who are watching). They are like many of the smaller PI's. They are waiting for the contracts to arrive. But everyone knows that the share price will be about 65p when (and if) these contracts arrive. The difference between institutions and the smaller PI's is that the institutions know that finncap will have seen the paperwork to support the statement 'FOUR of these contracts worth £71 m, over an average two-year delivery period, should be signed in the next few months and deliver meaningful revenue in FY22). The institutions will have received the company note and will be running their slide rule over the company and looking to decide whether to buy. The problem is that they know that a lot of the stock is held by a few large PI's, who know the potential and will not be sellers. Do they bid 50 p in the hope that they can purchase a worthwhile stake? If they assume that this company will be taken over and they can make a quick profit, they will be disappointed. I suspect that these large PI's are in for the long haul. They like the management, they like the product and its potential and they also like the AIM IHT benefit (Will it last?)

[pugugly] 30/7/2021 19:05

With Tucker buying shares and ST of IC giving a strong write-up why does a cynic like me think that the market might - just might - be getting softened up for yet another fund raise - (bwthdik)

[pinkfoot2] 30/7/2021 16:55

I’m surprised-not unhappy but surprised.ST buying a few shares was clearly bread on the water but it did the trick.It’s convinced IC who are also now in the disciple group.

The cost of running the show must be significantly cash negative and the debt in the BS is substantial.Unhelpful for a lumpy ride like this one.Unless a contract drops, it will be another visit to the shareholder trough.

There is a lot of good narrative on here-but it all starts with the words IF and WHEN.Finncap won’t produce anything meaningful until a contract drops in-that takes you back to IF and WHEN.

The company describes itself as a global player-with a very poor turnover number.Read into that what you may.

We need to see a contract and soon-I think we can all agree on that

[crystball] 30/7/2021 16:38

I am surprised the share price has risen today. The balance sheet is certainly not in good health and there are many more staff to have to pay going forwards. I sold about a third of my holding which I bought a year ago. The long wait for contracts continues......

[pinkfoot2] 30/7/2021 16:24

Nobody wants to talk about the balance sheet which is in a state of disrepair-living on debt isn’t smart.

If no contract drops in the next few months, back to the shareholders