T42 Iot Tracking Solutions Share Discussion Threads

[sunshine today] 09/2/2022 13:24

Lots of great information:

Run off the old business over next year or two.

Grab a manufacturer and installer, not difficult.

Sell the data ten times over, to heaps of different parties in the supply chain.

SAAS income to die for.

Very light capital requirement

[nick2412] 09/2/2022 12:40

Very bullish interview from the CFO.

[smithie6] 08/2/2022 15:49

Nig1954 wrote

"If TRAC are aiming to utilise first mover status and become the premiere provider within the field of container tracking then provided they can gain sufficient traction it’s not beyond the realms of possibility for them to become the predator to protect their position as the leader within this particular field"

imo complete & utter rubbish

One company in USA states on their website that they provided 80% of the total number of tracking units on the installed number in USA on road going thermal containers of about 500k units.

The gorilla in the room is not TRAC.

[sunshine today] 08/2/2022 11:55

Good points.

Having had four extremely successful investments over the years I have learnt how to spot potential shares that can rise 50 fold within a reasonable time frame.

All of my previous winners have had a track record that did not inspire confidence, however, on the plus side they were attractively priced.

A few of these, and your not worried about the washing machine requiring a £160.00 repair.

I never invest for anything that can’t rise very significantly.

Few shares have the capability to grow super fast

Let’s rule out a few examples.

Banks
Builders
Shops
Pubs

Now back to TRAC

Is it possible to grow income 5 or 10 fold in one financial year.?

Does the city rate SAAS revenues highly?

Can the company raise cash on the back of orders .?

Is the addressable market without bounds ?

Can one buy the shares in volume at a price that does not reflect prospects ?

[nig1954] 08/2/2022 11:34

Alternatively, many of these new contracts will be self financing or there will be sufficient funds provided to cover costs. If TRAC are aiming to utilise first mover status and become the premiere provider within the field of container tracking then provided they can gain sufficient traction it’s not beyond the realms of possibility for them to become the predator to protect their position as the leader within this particular field.Let’s not forget that one of our non-exec directors is also associated with Kape Technologies PLC and t42’s principal aim is to become a SaaS services provider and ultimately we’ll be providing the hardware at £nil cost.
However, given the director’s ages and profile I rather suspect they’ll be looking to rapidly grow and sell this division as this will be their final pay day and they’ve all got considerable shareholding’s and options/ warrants which suggests this would be their preferred option. They’ve been quite happy in the past to convert deferred salaries and personal loans into shares so you’d be inclined to favour a capital exit.

[sunshine today] 08/2/2022 05:41

The shipping companies will no doubt use part of these massive Profits on investment for the future.

So it’s not like budgets are stretched, ( most of the world is at the bottom of the inflation pile, shipping and energy are at the top.)

These companies are making 5 times average previous profits.

I would not be surprised if a large player in the sector attempted to take out TRAC at some stage.

[sunshine today] 08/2/2022 05:33

Morning.

Shipping container lines on track make a record-breaking $150 billion this year from the supply chain breakdown :

NICOLE GOODKIND

December 3, 2021 10:30 PM GMT+2




Prices on consumer goods have surged to 31-year highs as retailers face a very real supply chain crisis ahead of the holiday season. But one group is profiting off of Christmas woes and celebrating with very stuffed stockings: shipping container companies.

Container shipping pre-tax profit for 2021 and 2022 could be as high as $300 billion, according to Drewry, an independent maritime research consultancy. In 2021, the industry is forecast to make $150 billion. That’s a new record. In 2020, the industry brought in $25.4 billion, according to The Journal of Commerce. And even though 2021 has been a banner year, Drewry expects the industry to make even more in 2022.

“To seasoned observers of the container market, typing these numbers on a page is frankly surreal” Drewry wrote in its Container Insight Weekly analysis on the industry. “Stronger-than-expected spot rate movement in the third quarter and a longer supply chain recovery timeline are behind our reason to upgrade the outlook for average global freight rates — spot and contract — for 2021.”

Those eye-popping numbers might be because container companies like Maersk are taking advantage of strong demand in ports, and raising freight prices to new highs. Dewry expects average global rates for Q4 to increase by 126% above those in Q3.

As ports and terminals experience delays due to the breakdown in the supply chain, they have essentially become parking lots for ships and boxes, allowing container and shipping line companies to continue to charge fees as they wait. Soaring demand for containers and shipment, meanwhile, has led to rapid and drastic fee increases.

[dancing piranha] 07/2/2022 16:59

Smithie, have you lost a lot of money on this company in the past? Or did you run out of patience and sell before the recent rise?

[sunshine today] 07/2/2022 10:32

It should also be noted, finance will not be an issue, the quality of the clients and long term contracts gives the lender solid security on the debt.

[sunshine today] 07/2/2022 10:28

Absolutely dirt cheap so long as they deliver.

As I have repeatedly stated had this company not had a chequered past, the shares would already be well over a quid.

If you believe the tec works, ( it appears it does ) , then sales are not an issue.

[nick2412] 07/2/2022 10:24

Some good facts and figures and insight into the business model here:-

"The present alternative market competitors, fall short on delivering a comprehensive suite of solutions in the context of machine learning and smart IoT technology. Proper execution could enable t42 to capture a sizable swathe of a market valued at in the billions at relatively attractive margins."

"The company charges a one-time $250 fee per container to outfit shipping vessels with hardware at a gross margin of ~30 cents per dollar of sales. Subsequent to installation, t42 charges $2 per container per month for ongoing artificial intelligence (AI)-enabled Software-as-a-Service (SaaS) monitoring. The company expects, in the next two years, to charge only for SaaS and provide hardware on a subsidized, no-cost basis. This business model evolution will facilitate the assembly and growth of a global tracking and monitoring infrastructure based on t42 hardware."

[nick2412] 07/2/2022 10:04

The piece mainly covers what holders already know. This snippet, however, bodes well.

It suggests TRAC is positioned to take a significant proportion of the multi-billion shipping container market.

The fact is with such a minuscule m/cap and low-cost base, if TRAC can get just a relatively small proportion of this multi-billion market, then there is significant valuation upside. As for "a significant portion"? Well, I will wait with interest for the trading updates, but the risk/reward for me is enticing. As ever dyor. From the article:-

"While there are competitors that offer components of the necessary tracking solution, none deliver on a complete suite of solutions, and t42 stands to capitalize on a significant portion of the multi-billion dollar industry."

[tightfist] 06/2/2022 18:03

Hi Smithie6,.I understand your scepticism. However, ownership of the IP, piloting from small numbers and interactive development activities with a blue chip company can be very rewarding for the ultra-patient. Just take a look at how Cyan is now finally shaping up after several years of frustration for the LTH. .Cheers tightfist

[smithie6] 06/2/2022 12:33

I see that the rampers are still busy trying to promote shares in TRAC & avoiding consideration of the risks in the current share price, which has already more than doubled despite not receiving any sizeable orders at all.

[nick2412] 02/2/2022 21:33

You may well be right Bapodra but there are a few microcap funds along with high net worth investors who might have seen an opportunity here. It's just odd that 6 buy trades below 120 shares went through this afternoon.

One small-cap fund that might be taking a look is the one run by Miles McNulty. He or his fund used to hold 13m plus shares in Starcom and he sold in 2019. He might be tempted to buy back in for his family fund as t42 tells a new and compelling story. He usually publicises his holdings once he has bought in, so we will get to know in due course.

[nick2412] 02/2/2022 15:23

A lot of tiny bit trades have gone through of late. Quite possibly indicative of a fund acquiring.

[nick2412] 02/2/2022 15:22

Yes it sounds good dg, I use iPhone and telegram groups aren’t that intuitive to join but it’s probably just me. Will work it out.

[smithie6] 02/2/2022 14:24

Bapodra wrote

"The key question is whether this interest will lead to significant orders and revenues for TRAC. If so then we are on to a winner and if not then as long as we have an exit strategy we can move on".

What rubbish imo.

Gives the impression that there is only upside & no downside risk. Obviously complete rubbish, imo.

The current price imo assumes that some sizeable orders (eg. £2 million in 2022 & paid for in 2022) will be received. If it doesn't happen then the share price will imo go back down.

[dgbell7] 02/2/2022 10:03

thanks Nick I am pleased at the start we have made to the Telegram group and I think it's going to be a great additional forum for holders/genuinely interested prospective buyers. Hands up I am a fairly recent buyer (late Nov) and I'm hoping to learn a lot more myself and am delighted we are seeing LTH's on the group. I am a fairly recent convert to Telegram but now really appreciate it as an extra forum.It's easy to use and I'd encourage folk to give it a go.

[nick2412] 01/2/2022 17:24

Thanks dgb I will join.

One thing for holders to consider is that the Chief Technology Director, Uri Hartmann, is clearly a tech genius. Aside from all the other products it’s a remarkable achievement for him to have developed award winning devices on such a budget.

I think DHL will put in some sizeable orders now they have awarded TRAC such an accolade for Lockies. After all they have given the product a formal Certificate of Excellence after a competitive trial with several competitors.

I can’t think of any better sales marketing tool for sales to other customers than:- ‘Endorsed by DHL with a Formal Certificate of Excellence.’

A fairly quiet period now but recent positive newsflow is just the start imo.

[glavey] 31/1/2022 07:48

Ha! Hardly the same though... But sweet dreams.

On the other 'promoters' tread someone said they are effecting a telegram group. Telling, perhaps...

Thing with this company is that almost anything could be going on, or almost nothing, who knows?