Star Energy Share Discussion Threads

[nick2412] 11/11/2021 08:35

VTS are already distributing a variety of Starcom products (including Lokies) for smart containers.



Even the U.N have got involved. Starcom did have strong links with an unnamed U.N. project but there's no evidence to suggest it was smart containers or whether they are still involved.




From a basic metal box that would frequently go missing it's now set to become an industry involving cutting edge technology including blockchain and IOT.

The question for me is whether the impending name change, t42 IoT TrackingSolutions plc is a coincidence or whether it's linked to the Container 42 project involving Cisco, Intel and IBM.

Either way, it's a substantive and growing market for Starcom t42 to focus on and with compelling benefits for the user.

[nick2412] 10/11/2021 14:48

Hi smithie, nice quiet thread this but suspect the herd will arrive in due course.

Here's a few links explaining a bit more about the Container 42 project and the big names involved. Seems the exact match for Star's products but confirmation awaited.







[...]



Looks like it was a two year journey / trial commencing in May 2019 so quite possibly it’s ready for ‘launch’ now.

"The hyper-smart Container 42 will be leaving the port of Rotterdam today for the first leg of a two-year data-collecting"

[smithie6] 10/11/2021 14:39

ah ha

interesting
& good info. thanks for sharing.

[nick2412] 10/11/2021 14:12

After the funding I wondered if the shares would drift back to the placing price but I think the accompanying statement was too strong with the prospects of significant contracts to come. No doubt some of the placees have taken their 10% profits as is standard with most placing.


I expect the re-rating to gather pace and there is the distinct possibility of news to accompany the formal name change on the 19th.

The name t42 just has to be linked to the prospect of being involved in the Container 42 project with IBM, Cisco and Intel which, in turn, would be named after the Hitchhikers Guide to the Galaxy with 42 being the "Answer to the Ultimate Question of Life, The Universe, and Everything." In the same style container 42 is tagged as "the Smartest container on the planet."

It would be a weird name change if Starcom / t42 are not going to be involved.

[smithie6] 05/11/2021 15:05

Could Star sell direct to big container shipping companies such as Maersk, Hapag-Lloyd ?

they have their name on the side of a lot of containers

would they be a possible direct customer, or is the Star business model to sell to the users of Maersk, Hapag rather than to them directly ?

Any Star experts reading who know the answer ?

[nick2412] 04/11/2021 10:16

More info here and billed as "the smartest container the planet has ever seen."

[nick2412] 04/11/2021 10:10

This extract from the blog highlights how Starcom would get involved with all their products including the digital lock, Lockies:-



Starcom online monitoring platform provides a flexible solution for all data points and relevant person. The information and notifications arrive to the relevant person only, based on relevance and job description, whether it is logistics, accounting or security. The system can also generate a wide rage of scheduled and “on-demand” reports based on the locations and history points of the units.

The system is designed to optimize the supply chain, prevent potential mistakes and makes the entire experience of shipment more transparent and less stressful. The Tetis installation process is very simple, fast and cost effective.

The second line of products that supports the protection of the container environment and goods is the Kylos family of products. The Kylos Forever provides security and monitoring solution for the pallet or ULD where the Kylos Compact fits to monitor the cargo boxes. Both units provide a wide range of parameters: real time location of the goods, temperature reading, impact or mishandling of the goods and light triggered events.

Last but not least, a truly unique product that supports the container environment is the Lokies, our keyless smart padlock. The Lokies monitors its location and sate in real time, it will alert upon any deviation in the pre-defined operations, any attempt to open it or breach its shackle, its built in BLE (Bluetooth Low Energy) capabilities, allow the Lokies to interface with various external sensors.

With the combined capabilities of all 3 lines of products (Tetis, Kylos and Lokies) Starcom Systems offers complete protection and visibility of the entire supply chain, from the factory doors thru the inland transportation, the sea freight and successful delivery to the client.

[nick2412] 04/11/2021 10:05

Great piece of digging by a poster on lse (post copied below). It looks like the t42 new name links to the container 42 project (as per the link below). This could be one of the anticipated contracts. Also, it ties in with Avi Hartmann's Sept blog on containers and highlighting how Starcom's monitoring can assist with the supply chain issues:-


"The use of 42 in the new name could simply be related to the 42 feet length for a type E shipping container, but more intriguingly it could be related to the attached “Container 42” article regarding the development of hyper-smart containers. Wonder if Star are getting involved on this Project as it sounds right up their technical street."

hxxps://www.marinetraffic.com/blog/container-42-the-hyper-smart-box-equipped-to-charter-the-unknown/

[nick2412] 03/11/2021 16:30

Aha, of course, I was a bit slow on that! T42 will make a nice ticker although IOT hasn't been taken for any LSE companies.

[nick2412] 03/11/2021 15:57

I suspect this is what they intend with the rebranding and they highlight in the recent trading update that the anticipated contracts will contribute to SaaS revenues. Also, in the pandemic impacted results, the SaaS revenues continued to grow and were given emphasis. We'll know for sure as the sector designation will show once the name change and share consolidation goes through. It seems the right fit for the Company as well.

[nick2412] 03/11/2021 15:38

The name doesn't exactly roll off the tongue but it might be more memorable for being a bit quirky. Anyway, that's not the important thing. The crucial thing is T42 IOT will, I assume, be designated a 'Software and Computer Services' company and gain a rating that is fitting for that sector, whereas good old Starcom was stuck in the doldrums of a rating little more than 1.5 or 2 times revenues in the Technology Hardware and Equipment sector.

[smithie6] 03/11/2021 15:20

share consolidation

1 new share for 8 current shares

nice.

having a share price anywhere close to 1p is not good, at over 10p will be better imo

----

but t42 at the start of the new company name

t42 = ??

it comes from a product name or from where ?

[hedgehog 100] 03/11/2021 14:39

03/11/2021 13:40 UKREG Starcom PLC Notice of GM, Change of Name, Share Consolidation

Proposed Change of Name to t42 IoT Tracking Solutions plc, 1 for 8 Share Consolidation

and Notice of General Meeting

Starcom (AIM: STAR), which specialises in the development of wireless, Internet-Of-Things (IoT) based solutions for the remote tracking, monitoring and protection of a variety of assets, announces that the Company is today posting a circular to shareholders containing a notice convening a general meeting of the Company to be held at 16a Hataas St, Kfar Saba, 4442516, Israel at 11.00 a.m. GMT on 19 November 2021.

The General Meeting is being convened to propose resolutions to change the name of the Company and undertake a share consolidation. Full details of these proposals are set out in the circular being sent to shareholders in a letter from the Chairman, an extract of which is set out below as well as a timetable of principal events. The circular will be available later today on the Company's website at www.starcomsystems.com

Defined terms used in this announcement are set out at the end of this announcement.

Letter from the Chairman of Starcom

On 22 October 2021, it was announced that following a strategic review of the business opportunities for the Company, it is proposed to seek authority from Shareholders to change the name of the Company. The new name chosen is t42 IoT Tracking Solutions plc and Special Resolutions to implement this change are proposed to be approved at a General Meeting to be held on 19 November 2021.

The change of name will coincide with a rebranding of the Company's various products and technology and a relaunch of the product range as part of a revised strategy that focuses on the container and freight market. This strategy, and the rebranding that it represents, is intended to leverage the market opportunity that has been presented by the major problems currently being suffered in the shipping and freight movement sector. We believe that the substantial increases in freight costs and the disruption to supply chains increase the need for our superior tracking and monitoring technology as shippers seek real time information to better control their assets in motion.

As reported, the Company is in advanced stage discussions for a number of potentially substantial projects concerning the supply of Starcom's various devices for the tracking and monitoring of containers and related items. Should these be successfully concluded they could provide significant revenues over the next few years, including SaaS revenues. There can be no certainty that these negotiations will lead to final contracts or if they do, what the final terms and value will be. However, certain potential clients have indicated their desire to reach an agreement with Starcom for its technology and the Board is hopeful to conclude one or more contracts before the end of this year. The recent raise of new capital will help to meet short term cash needs and to increase our marketing spend to take advantage of the new opportunities.

We do see major opportunities to expand our business over the next year or two and intend to promote our new brand and positioning aggressively on a worldwide basis.

Proposed Share Consolidation

As part of our corporate strategy, we also wish to restructure the share capital by carrying out an 8 for 1 share consolidation. The Board believes that the Share Consolidation could:

-- improve the liquidity of the Company's shares and increase trading volumes;
-- improve investor perception of the Company; and
-- improve marketability of the Company's shares.

The Share Consolidation will involve the consolidation of every 8 Existing Ordinary Shares into one New Ordinary Share. For example, for every 800 Existing Ordinary Shares currently held, you will, if the Resolutions related to the Share Consolidation are passed, in future own 100 New Ordinary Shares, or more or less depending on your holding.

The rights attaching to the New Ordinary Shares will be the same as the rights attaching to the Existing Ordinary Shares and the New Ordinary Shares will be admitted to trading on AIM in place of the Existing Ordinary Shares.

Immediately following the Share Consolidation, Shareholders will own the same proportion of ordinary shares in the capital of the Company as they did prior to the Share Consolidation (subject to fractional entitlements - see below) but will hold fewer New Ordinary Shares than the number of Existing Ordinary Shares currently held. ...

[supertag] 03/11/2021 10:14

That is me in now with a little over 100k shares.
GLA Supertag

[nick2412] 03/11/2021 08:41

It looks like the flagged up re-branding will place Starcom in the Software / SaaS sector.

The re-branding is both sensible and imo indicative that STAR anticipate SaaS revenues are set for strong growth.

I'm not sure how different multiples are in the UK compared to the U.S., but the median multiple for ARR (annual recurring revenues) for publicly listed U.S. SaaS companies was 16.6 in 2020. On that basis, it wouldn't be too much of a leap of faith to see STAR as a £30m to £50 m/cap company on the back of decent contracts and anticipated good SaaS revenue growth.

hxxps://www.kalungi.com/blog/saas-valuations

There are of course lots of variations for the multiples depending on the sector, profitability status etc. etc. and profitable small caps with decent growth will obviously get a higher multiple applied as the Jim Slater adage, 'elephants don't gallop', applies. Some analysts appear to prefer to use MRR (monthly recurring revenues) as the basis for applying multiples.

The bottom line is that if STAR rebrands as a SaaS company on the back of one or two long-term lucrative contracts that highlight future growth and a move towards profitability, then the Company is set for a substantive re-rating.

[nick2412] 03/11/2021 08:21

The other question is who are the contracts with:-

Some will remember this Lokies related tweet in Sept 23 2019 before the pandemic interrupted things:-

#Starcom Systems is now a proud member of the Coordinating Council On Trans-Siberian Transportation, which decides on every aspect of the #TransSiberianExpress!
hxxps://starcomsystems.com
#IoT #Transportation #Security #Monitoring #Telematics #Technology #Railway

Throw into the mix the “ initiation of a trial of Lokies by DHL in one of its main global hubs in Singapore” announced in July ’21 and things might becoming to fruition for Starcom.

It’s quite possible that the contracts could be different from DHL and the Trans Siberian Express when read in the context of the recent announcement flagging up imminenet contracts that could lead to significant revenues including SaaS revenues. The territories specified were USA and South America and the USA, …including … one of the major companies in the field of tracking and monitoring containers.”

These are obviously different territories to the Russian Railroad and the reference to containers doesn’t necessarily fit with DHL. Maybe they will come later on top of what are depicted by Starcom to be potentially transformational contracts in the U.S. and South America,.

[nick2412] 03/11/2021 08:19

Some revealing editing from an initial blog (published yesterday) by the CEO, Avi Hartmann, on the Starcom website. Very bullish but I assume the Company advisors asked for it to be edited.

Initially it was tweeted by @andybalc and read “The system has been successfully tested in dozens of countries over hundred thousands of miles, through various railroads, while traveling cross several countries. Those successful tests and POC have initiated several commercial negotiations that will soon come in to realization.”

I see, however, that “those successful tests and POC have initiated several commercial negotiations that will soon come in to realization”
has been taken out. Probably the nomad instructed that the CEO has blogged price sensitive information that can only go out as an rns as and when the contracts are signed.

It does reiterate the confidence in the last announcement and, to me, it confirms these contracts are in the bag. There’s no if and buts in the original blog, just an emphatic ‘’*will* soon come in to realization.”

[nick2412] 01/11/2021 18:34

H100 - interesting. I've read quite a few perplexed posts over the years regarding why STAR has such a minuscule market cap compared to some other same sector players with similar revenues usually trading in the £20m to 50 m/cap region.

Quartix is on a 196m m/cap with a p/e of over 40. If the STAR long-term potential contracts are capable of leading them into profit, as it sounds like they are, then there is plenty of scope for a substantive re-rating.

What's noteworthy is the p/e applied to profitable companies in the tracking sector. Quartix, for example, is on a p/e of over 40.

I am assuming that the Lokies product is linked to one of the under discussion contracts and, given their award to STAR, it would be a surprise if a contract isn't received from DHL in due course. There again, the description "one of the major companies in the field of tracking and monitoring containers" doesn't precisely fit DHL.

[hedgehog 100] 01/11/2021 17:33

It's interesting to compare STAR with another small AIM tech company involved in transport remote monitoring: Maestrano (MNO) -

12/10/2021 06:00 UKREG Maestrano Group PLC Final Results
"... Total Revenue 1,690
... Loss before income tax (1,222)
Operational Highlights for the Period
-- First US Contract with Union Pacific Railroad, the second largest Class 1Railroad in the US..."


MNO is currently 13p, market cap. £22.12M., on financial results far worse than STAR's.

And on the first of November two years ago MNO was 1.3p, which means that it's ten-bagged in the two years since then.

Funnily enough, helped by some important contract wins ...

Maestrano (MNO):

[nick2412] 01/11/2021 17:20

Excellent post from GLR1990 from across the road on LSE:-

CropX are behind schedule even if they are a fantastic partner, they estimated 88,000 units by Y/E 2022, I dont think they are going to achieve that (maybe even a third of that) however for little old starcom, that's not a problem since each unit IMHO likely contributes about $30-40 per year, so 30,000 units and you are looking at a nice ~$1m client right there (and thats growing)

Zero I think have come under what we anticipated, I doubt they sell more than 1-2K units per annum of the SRF and SRS, but still - it is all growing YoY - this is why the rebrand now is such a good idea because you already have a head start and where most LTH's or fence sitters are still living back in 2018, new investors will look at this company with a 3-5 year plan, see the current SaaS, see the growth from the partners, hopefully see a couple of new partners (Polaris would blow the doors off eventually but lets see if that materialised) and jump on board - a resurgence of some old partners would be nice like Cubemonk

We can move forward with Lokies, DHL, Cropx and Zero - that is worth WAY more than the current market cap and if they do land another large partner as per the RNS hints, then this could really motor - we are not THAT loss making either, $500K in H1 however the EBITDA was $160K loss so if business returns we will be profitable in no time

But, as I have said before, it is all about the SaaS, connecting units to the platform, ~$3m in SaaS and its bottom line profit for the foreseeable, $4m SaaS and you are looking at a market cap many multiples of here and likely $1-2m EBIDTA profit per year, for a tech company, you can start talking about PE's in the 30-40's etc. although some trade in the 60's and 70's albeit they are cash generative and have been for years

[nick2412] 01/11/2021 12:35

Normally you'd expect the placees to take their standard quick 10%, but having come in at the 35% premium they may be a bit more sticky than usual and await to see if STAR's trading statement projections come to fruition this year.

[nick2412] 01/11/2021 11:31

Beginning to sparkle at long last. I think the contents of the trading statement point to a much higher and sustained re-rating. Taking out the obligatory nomad insisted caveats from the trading statement, it's unsurprising to see the uplift. Star has a history of not fulfilling its promise and has always had a oddly low m/cap in relation to its technology , quality of clients, its revenues ratio to m/cap (including increasing SaaS revenues) and its low cash burn. Famous last words, it looks to be different this time.

Extracted highlights from the recent trading Update

* "Strong signals that business is starting to revive"

* "The Company has a strong pipeline of potential new business."

* "negotiations for potential new contracts are progressing"

* "the Company is in advanced stage discussions for a number of potentially substantial projects "

* "Should these be successfully concluded they could provide significant revenues over the next few years, including SaaS revenues. "

* "certain potential clients have indicated their desire to reach an agreement with Starcom for its technology and the Board is hopeful to conclude one or more contracts before the end of this year."

* "This includes discussions with potential customers in South America and the USA, including one that the Board considers to be one of the major companies in the field of tracking and monitoring containers."

* "It is now intended to commence a rebranding of Starcom's products"

* "The Company will focus on increasing its global marketing plans and seek to take advantage of the major increases in the costs to companies of shipping with containers "

*The Board is also giving consideration to a possible change of name of the Company to reflect the new branding image which is being developed."

* "Trading in the second half of the year is still expected to show an improvement on the first half, but much depends on the finalisation and timing of signature of the contracts referred to above."