T42 Iot Tracking Solutions Share Discussion Threads

[turbotrader2] 18/2/2022 09:22

Looks like a US listing

[smithie6] 14/2/2022 14:41

The rampers are busy posting why ppl should Trac shares.

But they make hide the fact that Trac applied for a patent for their container tracking unit about 10 years ago. The co. let their application expire/end. I assume it was rejected or that key parts of the application were rejected, as not being new or not being inventive (& not obvious to a skilled person in the sector, ie. =normal design rather than being an invention).

Anyone talking about risk/reward should mention that in at least 10 years of trying the co. has never achieved notable sales of container tracking units.

eg. the initiative with Cubemonk (USA) failed to provide notable volumes.

-----

Anyone that moved from Trac to Tavi has made good money. Up 30-40% in last 7 trading days.
;-)

[sunshine today] 11/2/2022 17:16

nig1954:

Spot on:

It’s not a hard sell, TRAC “S offer, is a complete supply chain solution, that’s desperately required , and quickly.

[nig1954] 11/2/2022 17:03

I’m also very enthused about the repeated reference to Customs authorities. If we can break into this market then there’s huge potential. More countries are now digitalising their Customs systems both processes and procedures. This process has now moved online.
The focus has now changed and it’s now all about collecting the correct taxes and duties as well as detecting illegal activities in an effort to reduce transactional costs.This opens new possibilities as with less information and detail required in the declarations , the process becomes significantly less complex,as already proven in Singapore.
The more flexibility logistics companies have, the better they can also optimise the available space for cargo.This will become vital as shipment volumes increase due to e-commerce . It could also significantly reduce the customs clearance process .
The electronic exchange of data will become the standard for exchange of information with customs service providers. Digital transformation pioneers will gain a competitive edge which may lead to market consolidation. Over time digitalisation will significantly increase the efficiency and speed of customs processing

[sunshine today] 11/2/2022 13:02

Great to see different views.

Investors tend to think shares are complicated, they are not.

First you need a product or service (TRAC have both,)

Then you require customers ( TRAC have some )

Then you need to deliver.

So two of the big risks are already taken care of.

That leaves delivery of the service.

Most of the growth companies on AIM have not even achieved the first two stages.

[nig1954] 11/2/2022 11:44

Igor mentioned in that recent interview that they had an 18 month advantage over their competitors so they presumably want to take full advantage of that.
I note that “Smithie”; is of a different view to many other contributors on this board.I’ve no problem with that as it makes for a healthy debate to question assumptions and put an alternative point of view. We’re all sufficiently grown up to make our minds up on the direction this company may be heading.
I don’t know who he was specifically referring to when he said someone already had 80% of the container market but if it’s a certain very large North American company then they also admit that the take up of new technology in the container market is woefully inadequate and there’s huge potential waiting to be tapped.
Also, the technical offering of that company is not on a par with t42 which is why we’re currently perceived to be the market leader in this field and presently hold first mover advantage.
It’s entirely in the hands of the BOD to ensure they take full advantage of the opportunities this presents and they’re currently putting together a team of highly qualified professionals to take the company to the next level.
They’ve changed strategy and are clearly aiming to move towards a SaaS business model and it would seem they have access to the appropriate financing to enable them to make this transition. We’ll retain ownership of the software and will become a knowledge based company.
Provided we gain sufficient traction,the amount of information we’ll gain from all our sensors will be huge. The SaaS model expands your market potential as anyone can access a browser through the internet and therefore has the ability to use the software.
There are huge risks associated with adopting the SaaS model but they can be managed. Also, initially much of the profits will be reinvested in additional R&D and hiring more designers,developers and other parts of the team. If you get it right then you can scale up relatively quickly and the value of your knowledge base can be enormous.
So whilst there are many diverse risks and the company may stumble along the way the potential rewards are there for all to see.I’m in the same camp as “ST” insofar as the future is concerned,and yes, $1 Billion may seem an outrageous valuation given the current state of affairs but it’s not beyond the realms of possibility.It really boils down to the level of risk each pi is prepared to undertake.It won’t be a smooth ride or one for the faint hearted but if you’ve got the stomach for it and can cope with the time horizon then it may be very financially rewarding.
My final comment is don’t underestimate the scale of the supply chain problems in the USA, they’re enormous,and various conflicting factors have brought them to this position. The Infrastructure spend will be huge but it will take the best part of 2 decades to resolve their past underinvestment. In the meantime there will be large scale economic chaos unless the US government takes the whip hand. The incumbent political party will take most of the blame despite the fact it represents administrative failings covering the last 40 years. An awful lot of DOLLARS is going to be thrown at this and the US has very deep pockets. The current US administration has already prioritised digitalisation as its No:2 priority so an awful lot is going to happen within this space.
As ever dyor and best of luck to those who have the stomach to see this through!

[sunshine today] 10/2/2022 14:42

I see 10P a day on the share price this year and 30P a day next.

Why ?

In essence because the base line market cap is so low.

At a guess £10M of software revenue growing at 100% a year puts the stock over £1BN.

Next question is :

Can it be done ?

Yes it can.


Put me in charge for growing the company.

First find some contracts. ( DONE )

Next find 1/2 dozen manufacturers who can start production within 13 weeks.

Get your installer teams and programs in place

[nick2412] 10/2/2022 14:27

I think he also said that ST, but either he or one of the recent articles referenced an 18 month window of first user advantage for t42 given they are the only company with the complete tracking solution.

[sunshine today] 10/2/2022 14:24

I thought he said he was planning ( not definite ) to have a very different balance sheet going forward.

Just what I personally think will be the case.

[nick2412] 10/2/2022 14:22

Looks like a solid base has formed at this level. Still anticipating further contracts in Asia and higher volume orders from DHL. As the FD clarified, TRAC is looking to take advantage of first-mover advantage and anticipates an 18-month opportunity. That's quite something for a £12m market cap company with the only complete solution and going for first-mover advantage in a multi-billion £ market.

[dgbell7] 10/2/2022 13:45

just a reminder about the recently set up Telegram group. It's t.me then forward slash then TRACsolutions. Already a decent number of members and interesting chat.Just another option to talk all things TRAC.

[sunshine today] 09/2/2022 13:24

Lots of great information:

Run off the old business over next year or two.

Grab a manufacturer and installer, not difficult.

Sell the data ten times over, to heaps of different parties in the supply chain.

SAAS income to die for.

Very light capital requirement

[nick2412] 09/2/2022 12:40

Very bullish interview from the CFO.

[smithie6] 08/2/2022 15:49

Nig1954 wrote

"If TRAC are aiming to utilise first mover status and become the premiere provider within the field of container tracking then provided they can gain sufficient traction it’s not beyond the realms of possibility for them to become the predator to protect their position as the leader within this particular field"

imo complete & utter rubbish

One company in USA states on their website that they provided 80% of the total number of tracking units on the installed number in USA on road going thermal containers of about 500k units.

The gorilla in the room is not TRAC.

[sunshine today] 08/2/2022 11:55

Good points.

Having had four extremely successful investments over the years I have learnt how to spot potential shares that can rise 50 fold within a reasonable time frame.

All of my previous winners have had a track record that did not inspire confidence, however, on the plus side they were attractively priced.

A few of these, and your not worried about the washing machine requiring a £160.00 repair.

I never invest for anything that can’t rise very significantly.

Few shares have the capability to grow super fast

Let’s rule out a few examples.

Banks
Builders
Shops
Pubs

Now back to TRAC

Is it possible to grow income 5 or 10 fold in one financial year.?

Does the city rate SAAS revenues highly?

Can the company raise cash on the back of orders .?

Is the addressable market without bounds ?

Can one buy the shares in volume at a price that does not reflect prospects ?

[nig1954] 08/2/2022 11:34

Alternatively, many of these new contracts will be self financing or there will be sufficient funds provided to cover costs. If TRAC are aiming to utilise first mover status and become the premiere provider within the field of container tracking then provided they can gain sufficient traction it’s not beyond the realms of possibility for them to become the predator to protect their position as the leader within this particular field.Let’s not forget that one of our non-exec directors is also associated with Kape Technologies PLC and t42’s principal aim is to become a SaaS services provider and ultimately we’ll be providing the hardware at £nil cost.
However, given the director’s ages and profile I rather suspect they’ll be looking to rapidly grow and sell this division as this will be their final pay day and they’ve all got considerable shareholding’s and options/ warrants which suggests this would be their preferred option. They’ve been quite happy in the past to convert deferred salaries and personal loans into shares so you’d be inclined to favour a capital exit.

[sunshine today] 08/2/2022 05:41

The shipping companies will no doubt use part of these massive Profits on investment for the future.

So it’s not like budgets are stretched, ( most of the world is at the bottom of the inflation pile, shipping and energy are at the top.)

These companies are making 5 times average previous profits.

I would not be surprised if a large player in the sector attempted to take out TRAC at some stage.

[sunshine today] 08/2/2022 05:33

Morning.

Shipping container lines on track make a record-breaking $150 billion this year from the supply chain breakdown :

NICOLE GOODKIND

December 3, 2021 10:30 PM GMT+2




Prices on consumer goods have surged to 31-year highs as retailers face a very real supply chain crisis ahead of the holiday season. But one group is profiting off of Christmas woes and celebrating with very stuffed stockings: shipping container companies.

Container shipping pre-tax profit for 2021 and 2022 could be as high as $300 billion, according to Drewry, an independent maritime research consultancy. In 2021, the industry is forecast to make $150 billion. That’s a new record. In 2020, the industry brought in $25.4 billion, according to The Journal of Commerce. And even though 2021 has been a banner year, Drewry expects the industry to make even more in 2022.

“To seasoned observers of the container market, typing these numbers on a page is frankly surreal” Drewry wrote in its Container Insight Weekly analysis on the industry. “Stronger-than-expected spot rate movement in the third quarter and a longer supply chain recovery timeline are behind our reason to upgrade the outlook for average global freight rates — spot and contract — for 2021.”

Those eye-popping numbers might be because container companies like Maersk are taking advantage of strong demand in ports, and raising freight prices to new highs. Dewry expects average global rates for Q4 to increase by 126% above those in Q3.

As ports and terminals experience delays due to the breakdown in the supply chain, they have essentially become parking lots for ships and boxes, allowing container and shipping line companies to continue to charge fees as they wait. Soaring demand for containers and shipment, meanwhile, has led to rapid and drastic fee increases.

[dancing piranha] 07/2/2022 16:59

Smithie, have you lost a lot of money on this company in the past? Or did you run out of patience and sell before the recent rise?