Telit Communications Share Discussion Threads

[bazildonbond] 09/11/2016 06:23

How many listed companies are sat on cash, not many, it doesn't make sense to sit on cash not earning anything, especially in this low interest rate climate it makes perfect sense to borrow to expand, especially if (as a company) you are expanding/growing (in a niche market) at double digit rates.

[justfactual] 08/11/2016 22:49

What a load of bull Sphere25! Talk about talking your book. Cracking trading update. Investing in and growing a great business. It was a trading update today and the business is trading very nicely. No need to pander to the shorts agenda. Why show your full hand. Better to wait for the next set of results and blow them to smitherines. Of course with the wave of Chinese takeovers in Western semi-conductor/tech companies, that is another very plausible scenario which could play out. If you have ever met Oozi you will know he oozes (sorry!) integrity, work ethic and has a very firm grasp of managing strategic growth.

[sphere25] 08/11/2016 09:36

Timmy,

It's just a matter of being patient, these things can ebb and flow with plenty of ups and downs before playing out. I'm not the serial shorting type and I clearly can't move markets (lol), but with the lack of cash generation here, something just doesn't smell right.

Difficult to say if the directors are corrupt fraudsters, but the longer the lack of cash (and it has been a while), the less tolerant the market will become to this company. At the moment, the market is supportive and the stock has held up incredibly well in light of the aggressive shorting from various funds.

But you do have to ask yourself why they are omitting the most key piece of information when all the shorts thesis is based around the cash! I think it's just a matter of time before this stock craters because I don't think they will generate cash or enough meaningful cash to justify the current valuation.

Might be wrong and take a right good kicking, but that is the market. Sometimes you make good calls and sometimes bad calls. If I were a bull here though, I would be absolutely scrutinising the cash flow statements and having a long hard think about the valuation and current exposure.

All imo

[this_is_me] 08/11/2016 09:16

Doesn't look to be a problem for a growing tech. company unless you think that they are crooks.


Cash

As of 30 June 2016, the Group had net debt of $29.1 million (31 December 2015: net cash $1.1 million). The main reasons for the increase are acquisitions ($14 million), the payment of the 2015 dividend (approximately $7 million) and increase in working capital

[timmy11] 08/11/2016 09:02

is your short not working

[sphere25] 08/11/2016 08:43

Downgraded the revenue slightly though.

And more importantly, absolutely no mention of cash.

Do you want to know why?

It's because they won't have generated any!

Keep shorting any strength here.

The game is up here Oozi Cats!

All imo

[this_is_me] 08/11/2016 07:54

Positive trading statement. It looks like all the shorters have managed to do is keep the share price from going up to the level the share price should be at given the numbers.

[bazildonbond] 08/11/2016 07:46

Oozi Cats, Group Chief Executive, commented:

"Our guidance for adjusted EBITDA and EPS reflects our anticipated double digit growth for the full year.

"Americas return to double digit growth, together with the growth in APAC and EMEA and the continued strong momentum in our IoT Services business, leaves us well placed to finish the current year strongly."

This morning!!!

[bulltradept] 07/11/2016 11:08

I am wondering if there has been a recent broker down grade?

[blackbear] 01/11/2016 13:06

timmy11 I found it within the interim results

[bazildonbond] 01/11/2016 12:48

Thanks for the link Mr Sphere25, after studying Enismore's shorting trades, it's pretty obvious to me (at least) that they are short trading, infact if you look at the pattern and the prices what they are actually doing is taking a substantial stake in Telit, instead of taking the profit in cash they are collecting more shares. Telit is an ideal company with which to do this, it has a standard pattern, i know this because i do the same, but I sell high and wait for them to drop, infact this can be done by day trading, such is the movement, there are a few more listed companies that it is possible to do this quite effectively, tho not always correctly, otherwise i would be too busy on my tropical island to chat on a BB/forum. ;-)

[timmy11] 01/11/2016 08:15

blackbear
where did you find this?

[blackbear] 31/10/2016 22:15

The Group is providing the following guidance for the 2016 annual results (2) :

-- Revenues of $370-$390 million - increase of 11% to 17%
-- Adjusted EBITDA of $52-$60 million - increase of 15% to 32%
-- Adjusted basic earnings per share of $24-$30 cents - increase of 11% to 38%

[timmy11] 31/10/2016 15:18

IoT Cloud-ready, smart modules feature exclusive Intel® Atom™ x3 SoC Processor technology

Telit, a global enabler of the Internet of Things (IoT), today announced global commercial availability of the world’s first hybrid IoT modules that combine 3G Cellular, Wi-Fi, Bluetooth and GNSS into a single package. The new HE922-3GR and WE922-3GR smart module series in the xE922 family are also the first to use the Intel® Atom™ x3 SoC Processor technology with a self-contained quad-core processing engine and comprehensive I/O resources. Combined with the company IoT Portal and IoT Connectivity services, these modules deliver a complete end-to-end solution ideal for providers in a broad range of application areas including healthcare, vending, POS, public parking, smart buildings, smart grid and the industrial internet of things.

“The xE922-3GR products are game changers. When you look at how complexity of designing devices with multiple chipsets is impacting cost and time-to market, you can appreciate the power of these all-in-one hybrid modules,” said Ronen Ben-Hamou, Telit Executive Vice President of Products and Solutions. “It would take a good engineering team months to develop an IoT device prototype using disparate chips, whereas an engineer or two can now create a complete end-to-end IoT solution in just couple of weeks.”

“Across all industries and segments, businesses are always looking for shortcuts in traditional product development to get to market faster,” said Fred Yentz, Chief Executive Officer, Telit IoT Platforms. “With the combination of Telit’s Cloud-ready IoT modules, custom data plans, comprehensive IoT Portal, and unmatched IoT Know-How, we make it easy to connect, manage and integrate your ‘things’ with web-based or mobile apps or enterprise systems – providing the fastest path to business transformation, improved operational efficiencies and innovation in the market.”

[sphere25] 31/10/2016 09:40

Taken an initial short position here.

Was going to wait but the way this is being shorted suggests something very negative is on its way in the near term. There are now 6 funds short with net positions greater than 0.5% with possibly more under that threshold:



The number of funds shorting and the total short position is continually increasing. Following previous stocks which were shorted so aggresively like this, I'd say a big short report is very likely on its way, which will absolutely obliterate the stock.

If you're long here or are considering buying, now is a good time to save yourself some of your hard earned cash and get out. You only have to look at why so many funds are falling over themselves to try and short this company, then consider the fundamentals.

At best this stock is overvalued on fundamentals: Market cap currently around the £300m for a company that has been generating absolutely no cash flow and instead is building up more and more debt. At worst, there could be something far more sinister going on.

Either way the game is up for TCM and Oozi Cats. If I were him, I'd be looking for a way to sell as much stock up here at elevated levels whilst still possible.

Feel free to hate the shorts now, but if you open your eyes and look at what you have here, you will be thankful later.

The board is being covered off move by move, Check and Mate to follow.

All imo.

[bs76] 27/10/2016 15:11

:) Ennismore is struggling to keep this down. Good fight by TCM management.

[muffster] 25/10/2016 15:28

Looks like another case of aggressive accounting finally catching up with a hyped market. There have been so many AIM disasters and having reviewed the accounts I side with the shorts (although I don't like their tactics)

[dudishes] 22/10/2016 11:30

I think a short at 268 is reasonable. I need no reason to prove as such. You prove me wrong.

[beergut] 22/10/2016 11:08

'Smart' home devices used as weapons in website attackhttp://www.bbc.co.uk/news/technology-37738823Hackers used internet-connected home devices, such as printers and web cameras, to attack popular websites on Friday, security analysts say.

[bazildonbond] 14/10/2016 15:28

If what some are saying about Telit's negative cash flow are true, it doesn't seem to effect the share price, after a small wobble for a couple of days, it's back to where it was. If what they say is true, and only two "experts" have reported/stated this, is it the way they have analysed the figures and assumed wrongly, at the moment TW and PS seem to be the only two that have seen the figures/stats in their "true" light, or they are wrong, biased, de-ramping etc etc. I don't read their views, are they good at "share tipping", what is their score card like.
When i get unsolicited phone calls about how to make me rich, i have a simple answer/reply....
If your scheme is so good, why are you still working, is your family fabulously wealthy, why would you share these details with a complete stranger? I would make sure my family and friends would be the first to benefit.

[timmy11] 14/10/2016 15:04

it seem sphere could well be tw
especially with the aggressiveness of his posts

[keith_molyneux] 14/10/2016 14:39

Sphere 25, wise words I think.

[zipstuck] 14/10/2016 14:29

Another acquisition on the way?