Touchstar Share Discussion Threads

[trombone_89] 29/10/2024 07:39

what do we think, down 30%?

[rivaldo] 29/10/2024 07:22

A disappointing trading update today. H2 revenues will be broadly similar to HI, so likely to be around a £500k PBT, although H2 will also be "strongly cash generative".

Nevertheless, against an £8.6m m/cap at 105p, the cash pile could be say £2.5m, leaving £6.1m of EV against a £500k PBT, which isn't unreasonable. Especially given that we're approaching the new year, which should start well given the "significant order" now being rolled out in 2025.

Presumably there'll be a decent MM markdown, although the upcoming completion of the strategic review and the cash pile/PBT/good recurring income may mitigate against the fall.

[cocker] 29/10/2024 07:18

Well after today's TU you might be able to pick up cheaper stock. The delay in the big order may well be due to the customer seeing whether TST is staying as a stand alone or a bigger part of something else.

[pavey ark] 26/10/2024 10:18

I have been in and around here since the BVM days.
Since Ian Martin I've been happy to buy into any dips and sell on any uptick but retaining a core holding.....these have been my easiest trades as I always had confidence in the management so if the profit took some time I was happy to hold.
I have also used TST as a bit of a cash source if I needed money for other trades.

It looks like this cosy arrangement is about to end so after the announcement I increased my relatively depleted supply by increasing my holding by 40%.......this was not easy and took four buys with an average cost of slightly under 105p/share.

A few rather obvious points:

1 Martin wants out and the market in TST is rather illiquid.
2. Hardy ,the guy who runs the company day to day, is over 60 and has been with BVM/TST for over 30 years !!
3. Major personal tax changes look likely (from April 2025)
4. The figures are there for all to see .......pick a number for a buyout and it will be well north of the current price,
5. 4-6 weeks was mentioned for the review ......they have offers or know of people wanting the company and four weeks have passed since the announcement.

As I pointed out the real plus for me is that I'm happy to hold my 40% additional shares (103p after dividend)if no sale but more than happy to take 130p (+?)if TST is sold.

"You pays your money you takes your chance"

[rivaldo] 17/10/2024 21:57

Appreciated davidosh, I've also edited my original post. More detective work is necessary then.

[grabster] 17/10/2024 12:42

Ah. Thanks. Have amended my Post 2384 accordingly.

[davidosh] 17/10/2024 12:22

Michael Taylor of the IC is a regular on the Mello show and has confirmed that he is not the MT large holder suggested in this thread but he did not deny having some interest in the company just not that large.

[varies] 17/10/2024 10:07

It seems unlikely that any parties interested in taking Touchstar over will commit themselves before the Budget.
This also seems likely to affect our potential liability to CGT as shareholders if a cash offer is forthcoming. My cost per share is about 76p and I suspect that this will be similar for many others. Mr.Martin has done well with TST but there were years of poor performance before he took over.
Having held most of my shares since 2012 l am, of course, out of pocket in real terms but would still have CGT of about 6p per share to pay if l sell at 106p even if the CGT rate is left unchanged.

[grabster] 17/10/2024 09:22

Lifting his stake from sub-3% to current level in the past 4 weeks will itself have likely cost him around £160k.

[rivaldo] 17/10/2024 07:55

IMO Michael Taylor's stake has to have been more long-term than speculative. To build a stake of £400,000 in a microcap like TST would have taken quite some time, and to dispose of it quickly would be incredibly difficult, even with a price surge, without some form of corporate action or specific institutional interest.

There may of course be a small speculative element included in his stake given the current strategic review and potential bid/corporate action.

[grabster] 16/10/2024 22:23

Got wind of a takeover bid perhaps - or thinks he has. Company did say they're open to bids. If it's a purely speculative stake on just the possibility of a bid it is a lot to risk. He does some fast trades - so could sell within days if his move triggers a surge.

[rivaldo] 16/10/2024 22:14

Well reminded grabster, I'd forgotten about him - I'm pretty sure you're right and it's that Michael Taylor.

A £400,000 stake is quite a commitment for a PI in a microcap like TST.

Edit - apparently it's a different Michael Taylor! Some more Googling required....

[rivaldo] 16/10/2024 14:50

RNS - a Michael Taylor has just declared a 4.85% stake in TST, with 398,000 shares:



He's not on TST's list of major holders above 3% as at 20th September per their web site, so does this mean he's been buying pretty handsomely since that date?

[varies] 11/10/2024 10:05

Kinwah
Like you l have been keeping an eye on these 1% + declarations. The total so far comes to 35.38%.
Some of these are by shareholders already recorded with 3% or more such as Messrs Charlton and Millington and Unicorn Asset Management with about 22% between them.
Other shareholders with 1% or more may hold some of their shares through brokers such as Interactive, Charles Stanley, Killik and A.J.Bell each of whom is recorded as holding over 3% at 24 Sept 2024.
So there is duplication between these recent declarations and the 24 September list which accounted for 63.97% of the capital.
At that date 22.8% was "not in public hands".
It seems unlikely to me that bidders for TST (if there are any) will be appealing to shareholders over the heads of our directors and that our identities will be irrelevant to them.

[kinwah] 10/10/2024 13:12

Is anyone else enjoying the steady stream of Rule 8 OPDs? No wonder the shares are so illiquid with all these not quite 3% holdings lurking beneath the radar.

[rivaldo] 01/10/2024 08:57

To answer my own question above re the strategic review, TST's presentation accompanying the interims states that "the aim is to conclude the review by December 2024".

Absolutely right varies, a much quicker outcome than most (EQLS is another farcical one!).

[grabster] 30/9/2024 13:41

--- in which time Ocean Wilsons have risen 1480/820 = 80% :-)

[varies] 30/9/2024 10:47

Rivaldo
Certainly a much faster process than at Ocean Wilsons where shareholders are still waiting for the outcome of a strategic review announced 12 months ago.
In the meantime l am glad to see the increase in our dividend here.

[rivaldo] 27/9/2024 13:55

In this morning's meeting I believe I heard that the outcome of the strategic review should be known in the next 4-6 weeks.

Did I hear correctly? Certainly a nice quick process if so.

[russman] 27/9/2024 05:59

still think current EV is cheap to a predator.
scale up their products.
strip out their HQ overheads.
nice bolt on purchase.

[davidosh] 26/9/2024 09:24

Maybe Ian wants an exit before the end of this tax year as who knows what the Budget brings?

Touchstar will be presenting on our next Mello show on the 14th October

[elited10] 26/9/2024 09:11

I'd prefer to they just grew the company rather than sell it. But understand the need for leverage to grow at a greater rate.

[cocker] 26/9/2024 08:59

Buy backs on hold until the conclusion of possible sale,which I guess makes some sort of sense. Valuation should be north of 2 quid, so having waited X amount of years, a few more months won't matter. Once a bidder comes to the table ,the fun will begin!