Touchstar Share Discussion Threads

[varies] 10/11/2022 08:47

kaka47
Do you have shares to sell ? if a secure means can be found to effect the transaction, I might be willing to buy them off you at 80p.

[kaka47] 10/11/2022 08:13

Coker BLAH BLAH BLAH more no volume

[russman] 10/11/2022 02:09

Nearest I can get in M&A deals is Universe plc.
Not a close match.
But TST is relatively cheap in comparison.

[cocker] 09/11/2022 13:21

Yes sorry. The whole sector is flying and thus happy to spend their profits on either upgrades or new systems. TST in the right place at the right time

[smithie6] 09/11/2022 12:24

Rivaldo

thanks for sharing the text from Chelverton, I wasn't aware of that info.

[kaka47] 09/11/2022 11:53

Rampers are stuck here and are unable to get out, reading through there posts their frustration is clear to see. Once you get sucked in share like this you can not get out. No one would touch this share with BargepoleNo volume Massive news spread Try and get out, MMs will murder you with that Big Spread

[rivaldo] 09/11/2022 09:30

Chelverton Growth Trust issued their prelims this morning. They have a £595,000 holding in TST (almost 20% of their entire portfolio) and stated the following.

TST's £2.4m cash pile now represents almost 35% of the £6.99m m/cap, so perhaps to create the suggested value there are special dividends on the way, unless TST utilise the funds for overseas expansion as flagged and/or for further organic growth:



"Touchstar, as expected and heralded last year, has continued to improve its performance. This was evidenced in its latest interim results with increases in sales, gross margins, order book, profits, and consequently cash reserves. It will be important for Touchstar to utilise its hard created balance sheet strength to create value."

[cocker] 09/11/2022 08:54

Well a company near me who has supplied coal for 100 years and fuel for probably 30 has knocked the coal suppling on the head because the fuel side is so much more profitable. Thus I suspect this is the case for many distributors around the country who again I suspect have had exceptional trading. This begs the question as to why our petrochemical business is flying. Obviously it looks as if the country is heading into a deep recession, but TST looks as if it will weather this better then most and with a pile of cash that needs to be returned to investors some how over the next 12 months, gives us all here a very defensive play.

[cocker] 08/11/2022 19:59

What should have been a day for a huge rise, has once again been hindered by the ridiculous spread that the mm's think is acceptable. I tried dummy sells and buys on a few occasions today and each time the spread was 10p and sometimes plus. IM thinks that a buy back is an option, well that would basically put off any small pi. However, with 47p cash per share and a decent order book with decent recurring revenue, I would say broker target is below par.

[smithie6] 08/11/2022 14:17

....if only I was cleverer, I might be able to understand the first 1/2 of that last post !

[microscope] 08/11/2022 12:12

Scenes! Obviously been reading my posts and taken them to heart....

....I don't think! :) But still....

'microscope21 Jun '22 - 14:59 - 1778 of 1832 Edit
Just looking through this company's RNS history, yes they have trading updates from time to time, but I can't see a single stand alone contract win RNS.

Perhaps today's sign of a more proactive approach would help liquidity and interest, were it to be extended to new contracts of a decent size.'

Being serious though, very good news, particularly as it should also underpin next year at a time many companies will probably need all the help they can get.

[smithie6] 08/11/2022 11:55

(my sales at 60p might have been bt at 30-40p in the Covid crash. ;-)
...so, I maybe did ok.

(my portfolio did very well due to the Covid crash, strange but true)

[varies] 08/11/2022 11:43

Smithie
As your experience shows, this is not a share that lends itself readily to trading.
I have held a fair number of shares since the company's name was Belgravium and even recall receiving a dividend.
I hope to see my patience rewarded with a renewal of dividends next year but I am certainly well down in real terms although a little up nominally.
In today's climate TST's cash balance is very comforting.

[smithie6] 08/11/2022 09:01

Pavey Ark, well done.

(I hold much fewer shares but also happy since I added in the last few months, I think doubling my small holding, only got ~£5k worth.
Sadly made a mistake in selling at 60p last yr to then buy back at 70-80p this yr, ah well. Still need to work on my 'patience' !)

[rivaldo] 08/11/2022 08:59

As I suggested, WH Ireland have retained their current forecasts for the moment.

They have a 120p target price. Their predicted cash pile is £2.4m at the end of this year - over 30% of the now £7.6m m/cap.

I note they now have a 2024 forecast of 8.4p EPS, with a £3.1m cash pile. If/when the market begins to look forward to that in just over a year's time the share price could imo be anywhere from 150p to say 200p. Certainly well above where it is now.

They summarise:

"WHI view: This morning’s update is clearly positive and further adds to recurring
revenue levels across the group. Touchstar continues progress against its key
strategic objectives and we believe that the momentum the business is demonstrating is highly encouraging. The shares trade on an FY 2023E EV/Revenue multiple of just 0.5x, EV/EBITDA of just 2.4x and PER of 11.2x. With over 40% of revenue now being recurring in nature, we believe there is the potential for the shares to re-rate as the strategy continues to be successfully executed. We see fair value at 120p."

[pavey ark] 08/11/2022 08:55

This is going to make me look rather flash or stupid or both but I wasn't sure how many shares I had here.
It turns out I have 41k (this is more than I thought) and I see that in the last three years I have bought and sold four times (eight trades)retaining 90% of my 2019 total.

I haven't bought or sold for 18 months and don't intend to trade any time soon.

My point here is that 18 months ago I decided that things were going well, the management had a clear vision and were capable of producing very good results.....nothing has changed.

With all that was /is going on I was more than happy to park this holding.

[smithie6] 08/11/2022 08:49

well done TST.

(& the exec chairman who has done a very good job imo since arriving)

----
25% of the normal annual turnover !!... in 1 contract !

(but once installed the input to annual turnover will be much lower.)

----

this contract is imo a very useful lever for the marketing dept to use in the future
that ' big company X has recently had it installed & has X vehicles using it. And they looked at all the competing products before picking us'

:-)

[cocker] 08/11/2022 07:55

@75p thos company is a prime T/O target, let alone a cash rich little gem

[rivaldo] 08/11/2022 07:54

The RNS notes that this large contract reinforces expectations for this year as well as next, so it should positively impact the 2022 figures.

The forecast for this year was already 5.5p EPS, so hopefully that might now see further upside, as well as the 6.7p EPS forecast for next year.

I suspect WH Ireland will retain the current forecasts given the proximity of the year end, so hopefully the year end trading statement will bring a pleasant surprise.

TST really are showing they're a company on the up now having been successfully turned around.

[dolittle1] 08/11/2022 07:45

Those buying today run the risk of being spiked.

[cocker] 08/11/2022 07:37

A great win and probably the 1st contract award that I can rememeber needing an rns. One assumes the share price will rise significantly, but the shares are held so tightly, it maybe a case of good luck to those who might want in or add to their holding

[bio_tango] 08/11/2022 07:25

Well deserved.