Tracsis Share Discussion Threads

[apad] 06/5/2016 09:28

And Leeds uni have sold 500,000.
Suggests that good news on acquisitions or US orders is no time soon.
apad

[apad] 11/4/2016 17:45

More director selling.
8 April, John Nelson, Non-Executive Director, disposed of 130,000 shares of 0.4p each at a price of 500p
The beneficial interest of Nelson following this transaction is 100,824 Shares Nelson also has 25,000 share options from an agreement dated 2013 with an exercise price of 175p per share.
apad

[henryatkin] 23/3/2016 10:08

Turnover has increased every year now since 2005. Thats great record for a tech company imo which justifies a high P/E.

[lomax99] 18/3/2016 08:20

Loving the trendline here, tempted to add a few more.

[apad] 17/3/2016 09:53

Back to where the CEO sold a few.
apad

[buffetteer] 17/2/2016 19:18

Topped up at 475p. High is 580p which I'm sure we will retest in due course .lots of earnings to come through from acquisitions in next 6 months / year.

[wingrove4] 16/2/2016 23:29

If we can avoid a long bear market this would be an excellent buying opportunity. I shall be topping up my holding

[pj 1] 16/2/2016 10:27

long term yes

short term- unsure so probably not due to Bears.

[ali47fish] 16/2/2016 10:13

please does anyone think this is an opportunity to buy?

[apad] 11/1/2016 12:16

SCSW refers to a large acquisition that has fallen through but that CEO remains confident of catching a big fish.
I seem to have missed this - anyone know anything?

CEO share sale today, but not a lot.

apad

[rubberbullets] 03/1/2016 17:36

mctmct
17 Dec'15 - 09:57 - 659 of 662 0 0

CEO dematerialised most of his shares yesterday. Why would he do that unless he plans to sell them?







paul
please ask ceo if he is ready to lob shares out

[caradog] 23/12/2015 14:46

That's a very clear and informative reply. Impressed. Thanks for posting it.

[martinthebrave] 23/12/2015 13:18

John McArthur answer to Paul Scott re: Australian disposal below. Seems to answer the critics pretty well imo:

Tracsis (LON:TRCS)

Share price: 497p (down 2.0% today)
No. shares: 27.2m
Market cap: £135.2m

Disposal of non-core business - this announcement came out yesterday, and I pondered why Tracsis had decided to dispose of an Australian subsidiary which generated £0.25m in profit, for only £0.5m sales proceeds, most of which is deferred.

I try to build good relationships with the CEOs of quality companies, so dropped John McArthur an email querying the logic for this disposal, which on the face of it doesn't appear to be a good deal.


He replied in detail, and has given me permission to reproduce his email below, which explains the rationale for the disposal;



Hi Paul

As you know we are duty bound to insert into the RNS last year's financial numbers of the disposed entity but this does not paint the whole picture.

To put some more meat on the bones:

We originally came to own this business when we bought Sky High plc but it has always been deemed to carry significant risk by the Tracsis board given it is 10,000 miles away, dependent on a few individuals, has heavy WIP and slow paying debtors.

Profitability has been very variable over recent years:

- It has made a loss or broken even as often as it made a profit. If you took an average profit over the past few years then the multiple changes greatly
- Also, Australian corporation tax at 30% needs factoring in. We perhaps should have quoted PAT numbers!
- It’s true it made a profit last year but in years gone past it has been breakeven or loss making and had to be supported by the UK business.
- We’ve never actually taken cash out of Australia which tells you a lot about the quality of profits and cash generation. This always spooked me being frank.

When we offered the MD the chance to buy it from us he was happy to do so provided the price was right.

We considered a lot of different deal structures and consulted external advisors in the UK and Australia. The structure we have arrived at is the best we feel we could have got - it guarantees a modest return over the next few years whilst eliminating all execution risk and management distraction.

Obviously some shareholders will always think the value should/could have been higher but they will be unaware of the underlying trading wobbles and uncertainty in the past.

Given I'm a big shareholder I'm very happy with the deal and as you know we're certainly not in business of giving away value! Had the price not been right we always had the option of keeping it on as a going concern.

Hope this helps but a very valid question as couple of our institutions asked the same thing. Feel free to share the above with your readers.
- See more at: hxxp://www.stockopedia.com/content/small-cap-value-report-23-dec-2015-inb-trcs-115608/#sthash.ofCODOa9.dpuf

[rubberbullets] 22/12/2015 08:59

mctmct
17 Dec'15 - 09:57 - 659 of 662 0 0

CEO dematerialised most of his shares yesterday. Why would he do that unless he plans to sell them?




I concur

He will sell in January and cite "due to institutional demand"
His own desire more like

MEPC probably doing badly

[apad] 22/12/2015 08:28

MAybe it's not so much about the price but about the future of Australian activity?
apad

[andrewbaker] 17/12/2015 10:42

mctmct,

It's more convenient to have holdings in dematerialised form; to hold them in a nominee account, an ISA, a pension, as just a few examples. And it saves paper: so maybe he's a conservationist too, lol!

[mctmct] 17/12/2015 09:57

CEO dematerialised most of his shares yesterday. Why would he do that unless he plans to sell them?

[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.