Tracsis Share Discussion Threads

[caradog] 02/12/2015 12:21

Investec today reaffirms its buy investment rating on Tracsis PLC (LON:TRCS) and raised its price target to 530p (from 506p). Story provided by StockMarketWire.com

[apad] 02/12/2015 12:11

Consultancy and software - beef up before US expansion?
apad

[ramridge] 02/12/2015 09:13

I agree Iomax99. My rough calculations say that they have paid an EBITDA multiple of roughly 6 and a sales multiple of around 2. Also the deal seems to be immediately earnings enhancing.
Bought a good chunk this a.m.

Al IMO and please DYOR

[lomax99] 02/12/2015 08:54

Reaction somewhat muted - looks like an excellent fit at a very good price, let's hope they need to pay the maximum consideration.

[macarre] 16/11/2015 07:44

[off-topic]
Paul, wonder if you could comment about Stride Gaming (STR) in your Stockopedia update ? They posted preliminaries this morning.

[tradeyodha] 15/11/2015 18:59

Welsheagle, slightly negative. I am expecting a downward retracement so good news for short sellers for now. Please dyor

[yorkiemike] 15/11/2015 17:55

Thanks for this, Paul - very informative and a good read. I would imagine that 'speculative' turns out to be 'selective', as this would fit with the conservative approach. Nice to see an executive team who have their feet firmly on the ground and tell it the way it is (the Yorkshire way!).

[paulypilot] 15/11/2015 17:11

We've been beavering away to type & edit the transcript of my recent interview with the CEO & CFO of Tracsis - believe me, they take hours to produce (and we didn't even charge a fee to do this interview).

So here for your delectation, is the transcript (below the audio), just published:



I hope people find this useful/interesting.

Regards, Paul.

[welsheagle] 14/11/2015 19:34

Is this chart positive or negative, TradeYohda.

[tradeyodha] 12/11/2015 22:17

Please dyor

[apad] 06/11/2015 13:17

We have the same dilemma I think stewy. I nearly top-sliced on the results, but the interview stopped me.
The company is cash rich, doesn't pay a decent divvy and maintains the share price by posing as grow by acquisition company. Hence PERs of 20 plus.
The acquisitions seem to be carefully chosen but they dilute the jewel in the crown condition monitoring business.
It also works with a US company on a "long-term" project of getting its monitoring systems into conservative railways, and it is coy about the details.
I have known US companies enter into this type of arrangement and rip-off the UK company.
The original software was written by the ousted chinese guy. One wonders how good it is and how it has been developed since - however, its real selling point is the data monitoring kit. So, it is a package: generate the data and process it.
If the US project works it will be a pure gold seal of approval.
If TRCS is locked into the UK then it will lose its growth status because it is in a limited market with limited opportunities and start to run down the cash pile.
However, this could be a drawn-out process and as long as they keep promising yankee gold they could maintain their growth status.
There are currently 6 vacancies including 3 consultants, 1 software and 1 project manager.
The share price tends to perk up on news and results, then drift away off the radar. It's only a tiddler.
Sorry to reprise, but I find it useful to create a precis.
apad

[buffetteer] 06/11/2015 13:13

If you based your strategy on the brokers notes over the years you would always have thought they were expensive and never
Bought possibly. The CEO has always beaten the expectations and they are often upgraded as the year progresses.
With him being confident of further acquisitions it is v likely the analyst s forecasts will be beaten hamdsomely
This year . Just my opinion
Ps (I bought
All the up from 65p)and kick myself for
Selling any.

[stewy_18] 06/11/2015 12:36

I sold out 2 years earlier and I regretted it. Having the same feeling now. We will have to wait and see but your right about exceeding expectations APAD. Brokers notes don't look to flattering compared to actual performance. Maybe just buy and forget for 5 years. Lets see what happens.

[apad] 05/11/2015 15:08

Impressive performance by McArthur.
Explained the condition monitoring lumpiness well.
I still don't understand the synergy with the events traffic management people, but that's more likely to be due to my lack of information and understanding.
He has been consistent about the length of time needed to introduce the technology into the US.
apad

[paulypilot] 05/11/2015 14:13

Hi,

Tracsis interview now published.
Very interesting I thought (not a holder myself, but John McArthur sounds pretty confident):



I did this one for free, so if you found it useful, maybe you could consider making a donation to my website, which helps me with the admin & IT costs (I have to pay people to type up the transcripts, and have fairly heavy duty web hosting to be able to handle multiple audio file streaming). There's a donate button on the home page.

Regards, Paul.

[dixies] 05/11/2015 10:32

Investec raised target price to 506p 4th Nov

[apad] 05/11/2015 09:33

Investec restated a “buy” rating and set a GBX 456 ($7.04) price objective on shares of Tracsis Plc in a research report on Monday, September 28th. WH Ireland reiterated a “buy” rating and set a GBX 488 ($7.53) price target on shares of Tracsis Plc in a report on Wednesday.

[apad] 05/11/2015 08:51

Tintins marking it a buy and Questor also.
apad

[apad] 04/11/2015 09:37

I think they beat the forecasts, stewy. Current PER of 23 about right, but agree on the whole.
Don't like the margin dilution of parking companies.
And need to read that bit about less data logger turnover again. Didn't like that.
Nothing on the US.
Lacklustre.
Be interesting to hear what Paul Scott gets out of the interview.
Heaving with cash, might be snapped up I suppose.
apad

[stewy_18] 04/11/2015 08:45

I sold out here after I saw brokers forecasts. Still a great company, but growth has slowed a little compared to previous years. Does it still warrant the high rating? Possibly if they can crack the US market for condition monitoring, but there are too many ifs and buts to warrant such a high rating IMO.

I'll watch from the sidelines for now and may look to re-enter if there is more concrete news about MPEC.

[apad] 02/11/2015 07:53

It's the main question worth asking, but I don't see how he can answer.

More detail on how the latest acquisition fits - seems a little peripheral to me
apad

[welsheagle] 01/11/2015 17:53

The main question would be 'How is the hardware and software installation and testing developing in the U.S.A.'

[paulypilot] 01/11/2015 17:25

I am interviewing the CEO & CFO of Tracsis this coming Thu morning, the day after results day. My interviews are interactive, in that I ask questions mainly submitted by private investors who are interested in the company, e.g.

Obviously I can't usually ask all the questions submitted, but will pick the best ones. NB my interviews are NOT puff pieces, I am perfectly happy to ask tough questions (as evidenced in the SRT interview linked to above).

I interviewed John McArthur this time last year, and have commissioned a transcript of the recording, which is available here:


Also, this year the audio should be better quality, as I have a better recording system.

So, if you would like to submit a question, then please post a reply addressed to me here on this thread, by midnight on Weds 4 Nov please. I will then collate the questions the next morning, and the audiocast should be published on the afternoon/evening of 5 Nov 2015.

I hope people find this worthwhile.

Regards, Paul Scott.