Tracsis Share Discussion Threads

[stevemp2000] 26/4/2012 22:00

Having reviewed the numbers and news releases I'm struggling to identify any major negatives. Tracsis operates in a specialist niche where the product delivers clearly demonstrable financial/operational benefits and where barriers to entry are high. Given the strong upward trend in revenues and profit, the strength of the balance sheet and the bullish news releases, I think that these shares are on a very modest rating.

I'd be interested to hear about the weak points and risks of this business. Apart from a potentially lumpy revenue stream, what are the major downsides?

[pj 1] 26/4/2012 17:33

Good to hear Ross

[ross1314] 26/4/2012 17:30

Working in technical support for Network Rail I have witnessed over the last year or so how well the Mpec data logging equipment has been received not only by the men on the ground but also the higher management.

This was the main reason for me looking into investing in this company and once I saw how good there balance books looked and the steady growth in these difficult times it was a no brainier long term for me.

I have no doubt with the acceleration of the RCM project within network rail and how favoured MPEC loggers are far more lucrative contracts within the rail industry won't be to far away.

All the best!

[sparkstrader] 26/4/2012 16:42

Bought in. They are delivering growth and the price will follow the fundamentals once everything is absorbed.

[pj 1] 26/4/2012 15:21

McArthur buys £3k worth of shares. I take it Forest have been sold then? lol

[apad] 25/4/2012 10:02

Pretty tightly held PJ - about 15% by insiders.
A couple of big holders (40%) might take profits and so increase liquidity perhaps, and Kwan (12%) might want to take some profit. Leeds Uni. hold about 12%, I'd guess they would want to hold for advertising value.
Be interesting to look at the buying pattern today and for the rest of the week.
Significant sales in Europe based on UK reputation is what qould gild this lily for me.
apad

[pj 1] 25/4/2012 09:44

If we could get some good Press this would steam ahead! I assume McCarthur is the same MAC who is FD at Forest? Rumours Forest are going to be bought after the sad death of their Owner Nigel Doughety.. Not sure what that means financially for him, Maybe concentrate on this more or make it higher profile...????

[apad] 25/4/2012 09:37

Looks like the synergy between software and monitoring equipment is paying off.
They both create and process data.
I believe that this is a game winner for TRCS as it increases the barrier to entry for a pure software competitor.
The only negative I can identify is that the owners might want to sell - I've lost too many good companies to takeovers.
apad

[pj 1] 25/4/2012 09:09

Well ahead of Track.....

[marlint111] 25/4/2012 08:45

Yet more good news from Tracsis today.

[pj 1] 18/4/2012 10:01

Ah ok, don't want to ruin the run of good luck.....ssssshhhhhhhhhhh.....

[marlint111] 18/4/2012 09:50

PJ- Although no numbers given, the contract is described as 'significant' (which is presumably why they feel the need to give an RNS).

I've got great respect for how this company is run. They make consistent profits, grow consistently, under-promise and over deliver.

I also like how quiet the message boards are- always a good sign in my opinion!

[marlint111] 04/3/2012 17:45

APAD- I think most of the cash raised has been used in acquisitions (there certainly looks to be a healthy cash-flow shown on the accounts).

This might normally make me wary- but they seem to have a good record (the MPEC acquisition being the most obvious)

[share_shark] 04/3/2012 16:55

What a cracking company this is and what a recommendation it was by a tipster I subscribe to. Not techinvest but was one of their subscribers for many years too. GLA.

[welsheagle] 03/3/2012 19:25

From February's 'Company Refs', when price was 62p:-
a/ Prospective PE ratio of 12.8 (based on one broker forecast, WH Ireland, recommending as a 'buy').
b/ Growth in eps of 9.86%.
c/ Two Directors buying recently.
d/ Net asset value per share of 31.9p.
e/ Turnover up from £0.74m to £4.08m in last five years.
f/ Positive cash flow of 8.43p per share.
g/ Cash per share of 19.5p.

Some of these figures will probably be better, after latest newsflow,
and tipped by Techinvest

[apad] 02/3/2012 17:30

This is a post by the excellent geswan. Whadd'ya think?

Apad –Tracsis' revenue recognition policy is much better than IDOX's. But I think there are a couple of red flags to look out for from the last annual report..
Turnover has increased by 0.62m but debtors have increase by 0.93m. This must put a question mark over the quality of the earnings. They are also keen on generating cash from investors.
2008 Issued £1.6m of new stock
2009 Issued £0.18m of new stock
2011 Issued £1.95m of new stock
So you will need to keep your cheque book open. On the other hand, the price has done really well over the last year. Hope you got in at 50p?

apad

[goofball25] 02/3/2012 09:12

yh you would think that, but I assume there is a seller at 75p. Once they have cleared we should move upwards, what I was waiting to see before jumping in... but however, I bought in today due to some broker on CNBC recommending these. No effect yet.. one to tuck away for the med term minimum imo.

[apad] 02/3/2012 08:41

go....
there seems to be a steady stream of PI buys since the RNS but the price remains steady.
Do you understand why?
I would have thought a small cap would react automatically.
apad

[goofball25] 02/3/2012 08:37

Bought in here today after watching, growth potential compelling.

[marlint111] 29/2/2012 08:20

GrowthCompany:



Just one week after reporting it would smash market forecasts, resource optimisation specialist Tracsis (TRCS) has issued a highly impressive set of interims.

The AIM company is a leading provider of planning software to the rail industry, and has expanded significantly thanks to organic growth and four acquisitions. In the period to January, sales trebled to £3.7 million as pre-tax profits increased by a factor of nine to £1.1 million (2010: £127,000).

We recommended the shares at 57.75p in Growth Company Investor only in December, so the current price of 73.5p represents a decent re-rating. To add to the capital growth story, investors are to be rewarded with a 0.25p dividend, and this could be further stepped up at the year-end. House broker WH Ireland has been forced to boost its 2012 expectations, to a pre-tax profit of £1.6 million and EPS of 5.3p - this looks fairly conservative.

The cash balance of almost £6 million equates to 25p a share, but a £1 million deferred payment is soon to be paid for a recent acquisition. Tracsis has just picked up a £2.9 million contract with a major client and chief executive John McArthur remains hugely optimistic. He says 'our trading has been very strong, but we are still keen to acquire further businesses.' Even after the rise in the share price, Tracsis trades at a discount to peers which is unjustified given its current growth trajectory. Buy.

[apad] 28/2/2012 16:46

W...
I reckon the lumpy hardware a positive because it generates data for analysis and so broadens their value to customers.
Franchise is the risk, I agree.
apad

[wjccghcc] 28/2/2012 15:39

The main concern is actually that it's not really a software company. 80% revenues are from lumpy hardware and consultancy contracts and while the trend is positive, there may well be a downwards move in 2013 as the franchise tenders come to a close.

Still, they're certainly doing well at the moment.

[marlint111] 28/2/2012 15:23

I'm not too worried by the intangibles- it's not uncommon for a software company to have a large amount, which really represents the value of their IP.

[pj 1] 28/2/2012 15:17

Possible concerns ref Intangibles valuation is the only downside at present I can see. Hasn't stopped me topping up .........selftrade and Barclays couldnt deal!!!!