Tp Share Discussion Threads

[timojelly] 28/7/2017 10:07

Sizeable offload out the way there.

[interceptor2] 28/7/2017 09:46

You are one step ahead of me this morning cfro, RNS was released just after 08;00 so was missed by me.

It does sound positive and upbeat and I will look forward to news on the acquisition front now.

[cfro] 28/7/2017 09:24

Trading update out this morning. Inline with expectations but CEO sounding very upbeat.

Also completion of fundraising. Hopefully this is the start of a brand new chapter now.

[pavey ark] 27/7/2017 21:16

qackers, I agree that things have gone a bit quiet on the use of their technology in renewable energy and I am rather disappointed as I am a fan of increased use of renewables.
Perhaps things will come good in this department and there are a few project running but they aren't essential to the overall success of the company and could just be seen as a bonus if they come good.
I certainly would like more information from the company on this part of the D&T unit but even now it seems that D&T is to go into the MS unit.
As far as things going "belly up" I would hope that this would be unlikely, perhaps things could go well or less well with these acquisitions.
The big contractors like BAe and certainly the MoD would like to see their smaller suppliers taken over by companies like TPG so that they would be dealing with just one company and be confident that they had a secure IT system.
TPG obviously expect to have material advantage in negotiations so I expect things to go well but time will tell

[qackers] 27/7/2017 20:11

Pavey. I think you are right. Of course the institutions backing him may have had something to do with that. I guess the technology and promise was just too great. Apparently they could monitor what was happening downhole in real time. I wish that they could have commercialised some of their patents to 3rd parties. I really fancied the idea of using the compressor inline to generate electricity. Thats gone quiet as far as I can see.

In view of where we are now, I back management to pull this off. (Please don't quote me if it goes belly up after that statement)

[pavey ark] 27/7/2017 18:41

quakers, my main criticism of Cartmell was that he waited too long to come to the conclusion that he would not make money from the compressor business and that the company was going down the toilet.
I think he had come to the inevitable conclusion when you spoke to him but it still took him a number of years to get out of their loss making arrangements with other companies.

[septblues] 27/7/2017 17:36

Thanks PA

you seem to address your comments towards things which I didn't say.

And I bow to your superior knowledge on investment and how to value companies.

[qackers] 27/7/2017 17:05

When Cartnell arrived I am informed, from informal chats at AGM etc, that the machine was more or less an advanced lab machine. Looking back I am amazed that they are still around even if the company is very different. In hindsight the share price started falling when they took on a city lady as a non exec. I wonder if that was a coincidence. All in my opinion of course.

[pavey ark] 27/7/2017 16:44

I certainly don't even have to look anything up to refuse a large part of your post.
The money raised by Cartmell was to buy the Wellman businesses and to cover the eye watering losses from your dream of a successful compressor business.
Had Cartmell simply started from raising the cash and buying Wellman then the company would have been in profit for the last three years at least.
The fact that Corac had such a high market cap is simply testament to the fact that a number of people had bought into the "dream"and the share price went south when it was obvious that the compressor business was going nowhere.
I expect the share price to at least double from here but perhaps it would have been better for some if they had ignored the bitter old Corac trolls and accepted the simple facts when I presented them: the Maritime business was worth at least £30m ( on how they laughed) the cash was something like £7m and the market cap was £12m.

I have been invested here for three years and seriously invested for about two.
I have spelled out in some detail why I consider this to be such a good investment and have seen off any number of trolls and bitter Corac losers. I don't intend to waste much more time on a topic that has been done to death and one in which I have been shown to be absolutely correct ( it doesn't happen often so I thought I'd take some credit !!)

[septblues] 27/7/2017 16:08

PA

yes

"Once again we seem to have people still bitter about the money they lost on a blue sky research company that simply no longer exists." I don't take investment decisions with that overlay of emotion, whilst the IP to my knowledge remains in place and is being used with good potential.

I don't have the figures to hand but as I recall PC came on board whilst the MCap was roughly £30m (give or take) and share price c 30p (give or take), they've raised capital many times since then and the MCap was £23m and share price c 7p pre placement. The fact that the market doesn't give credit for the £40m MS business or cash is a separate topic.

I remember many moons ago someone saying that PC's narrative of his Vega success conveniently ignored the share price when he came on board as he rebased his share price for his positive narrative.

The only thing which matters to me is whether this will make money for me from here on out...sunk cost is sunk cost. For that, my judgement is whether I have adequate confidence in the management. I made my comments above and bought my rights.

So PA "so would you like to dispute any aspect of my post ?"

[pavey ark] 27/7/2017 15:47

I said in previous posts that the risks here had increased but then not many people seemed to realise that the company was as bomb proof as you could get so an increase in risk is acceptable.
The good thing though is that the increased risk also provides increased upside and I consider the upside to more than outweigh any risk.
The company obviously did not think " now wouldn't it be great if we expanded ....somehow ?"
"Give us a lump of cash and we'll think of something"
TPG found themselves in a position of obvious advantage and sought to exploit this with the encouragement of the MoD and large tier 1 defence contractors.
When TPG went to their institutional shareholders they were given £20m without a significant discount.
Management were willing to participate in the fund raising.

Edit:I think we may start to hear things from management that they couldn't say when in a fund raising situation and I expect rather quick action in regards to acquisitions.

[srichardson8] 27/7/2017 15:43

It is much better to make even a token 'Open Offer' than merely to suffer full dilution from a broker/company back-scratching placement. See SUN today. I thank and applaud the TPG management on that score. On the business I shall watch this space but thank Pavey for his contributions an hope his judgement is correct. But any acquisitions must be good ones.

[cfro] 27/7/2017 15:40

Its all done and dusted now and time for the company to start initiating its acquisition strategy.

Worth remembering that the CEO previously built Vega up and was a success story.

We might see the first acquisition land pretty quick as they are already in discussions.

[pavey ark] 27/7/2017 15:35

Septblues, they certainly are so would you like to dispute any aspect of my post ?

[scaleyman] 27/7/2017 14:56

tilts has been here long enough to have morphed into tiltonman by now!!! :0)

[cerrito] 27/7/2017 13:27

I did not participate in the open offer as I have no way of judging if they have the management depth to execute all these acquisitions and indeed have lightened up. Good Tiltonboy that you went in for so much as it is important that open offers like this are as fully subscribed as possible so that other companies deem it worthwhile to offer them.

[septblues] 27/7/2017 13:22

facts are facts

[pavey ark] 27/7/2017 12:20

Out and about so didn't consider the last post fully but this management need only be judged by the fact that they bought a company for £10m and built it up to £40m minimum in four years.They have spun off a MS company that they are currently building up and have spent very frugally in building up a viable engineering business.All of the above was done while they wrestled with the disasterous money pit that was Corac.Once again we seem to have people still bitter about the money they lost on a blue sky research company that simply no longer exists.

[septblues] 27/7/2017 11:49

I took up my entitlement but no more because one of the questions I ask myself is "how good is this management's judgement and execution"

The reality is that in the share price's journey down under this regime (remembering that previously it had journeyed up to £100m MCap) both the institutions' and the management's judgement has been found wanting as they backed prior fund raisings with their own money and believed in options at higher prices. Their projections have also been found wanting. They've lost money on that component to date whilst gaining on income.

So this is a reset to a cash rich platform and I suspect is more to do with the institutions that have lost money to date than the market opportunity and products. Whether it allows the institutions to recoup their losses can only be seen in the outcome. For one PI, if I recover my capital I'll be content.

[tiltonboy] 27/7/2017 09:58

TEB,

A bit larger than my usual holding size...lol...

I think as soon the acquisitions start being announced, we might well see a new audience appear. I would be disappointed if we didn't see double figures in the next 6-9 months, but I'm also aware of likely execution risk with so many targets to go for.

[trentendboy] 27/7/2017 09:12

Agreed. Side show but nice of them to give small PIs a chance to get in on the ground floor on the same conditions as the big boys. Good shareholder relations IMO and shows it is a well run company.

Confident holding and may sneak in a few extra

[timojelly] 27/7/2017 08:29

Exactly Pavey.

[pavey ark] 27/7/2017 08:22

The open offer was always a side show.
The only reason for the open offer was to give PIs the opportunity to participate but the discount wasn't enough to tempt people.
The real fund raising was the £20m raised from the institutions AND the management.
Private investors are disadvantaged by the legislation put in place to protect them.
I would imagine that the company "pitch" to the institutions would include suppositions and predictions that could/would not be included in a public offering.

I expect the acquisitions to progress very quickly as some will be in a very advanced stage as the institutions would want some details on where their money was going.

[timojelly] 27/7/2017 08:11

They now have circa £30mill in the kitty.