Trakm8 Share Discussion Threads

[mrtickleuk] 19/4/2024 09:19

Oh yes sure. Credit to the brave, brilliant, expert directors! Nothing can go wrong!

[smithie6] 18/4/2024 20:18

..juicy interest rate
but !
the company is in very difficult times, so interest rates are higher to reflect the risk of never getting the money back !

Does the co. have nett TAV to g'tee that these brave lenders will get their money back if the co. goes in to administration ?

At most listed companies I don't think the directors put up their own cash to try to save it. Instead many will just put in their notice & walk away. So, credit I think to these dirs for putting in their own cash to try to save the company.

[dave2608] 03/4/2024 20:28

They are prepared to pay 18% interest on 900k worth of CLNs and additionally as a consequence £1,580,000 of CLNs issued on 13 September 2022 are to be jacked up to 18% interest? That's some additional interest they are going to be paying. And it looks like a large chunk of this interest is going to be paid to erm......the directors. Also, nice how you can change the terms of the Sept 22 deal isn't it? And that's not just the interest rate; The convertable price too. But all of this allowed them to pay 500k for the rights to use certain ip from Action 365 plus provide 400k towards working capital. What's so special about Action 365s ip that they are prepared to incur all this additional expense? Very little at a guess. It's most likely a smokescreen.

What the hell is going on? I suspect jiggery pokery. They've just engineered another way to keep this sh*t show on the road and to make the headline figures look better, albeit in the sort term. Nice juicy interest rate for some of the directors too!!

All this IMO of course.

[whoppy] 25/3/2024 11:41

So does anyone have a trakm8 black box fitted to their car and how much cheaper is the pay as you go insurance? How much is it per mile?

[andre] 25/3/2024 11:19

Insurance is never going to pick up. Insurance companies have used the black box carrot to get the new young customers on board but haven't taken usage seriously. Just a way to entice customers. Customers now jump around the black box companies with no loyalty.

So insurance companies have 'developed' app based tracking which uses the customers mobiles to 'track' their vehicle usage. These often come with option to 'switch off' the app if you are a passenger and not a driver (so it doesn't impact your score). I wonder how honestly young drivers use this option. Especially as threats of cancelling their insurance for speeding or bad driving are also a part of the app. (Frankly, none of this is anything to do with encouraging better driving... just getting new customers at rip off rates).

The upshot being that insurance doesn't need tracking companies to pull the same con that insurance tracking was created for. They do it themselves at no cost.

Insurance tracking is dead. Quartix and others jumped off this bandwagon ages ago. Trak is left depending on a dead market.

All IMHO.

[smithie6] 25/3/2024 11:19

Microlise has ~£17 nett cash & it's turnover has ~12% organic growth.

So, if they wanted to they could buy TRAK, but does TRAK have any IT products that Microlise would really want ?
Noting that Microlise is growing turnover while TRAK is seeing reduced turnover.
The production capability might be useful for Microlise to own. But I assume it is much cheaper to get production done in India where Microlise has some presence. (But perhaps some questions about quality etc).

[smithie6] 25/3/2024 10:54

..ah, yes. 2013. Vague memories of that acquisition floating back to me.

Interesting to note the large subscription in cash in that acquisition for new shares by the current boss. £350k +/- X< @ ~22p.
So he's sitting on a big loss at the current share price. But with his salary & benefits over >11 years he is surely winning overall.

[dave2608] 24/3/2024 14:38

All a long time ago. Apparentely it was a thriving little company.

[smithie6] 24/3/2024 11:43

Dave2608

Your post looks pretty accurate.

With Microlise investing £3m for shares there were big hopes that TRAK products could be sold via Microlise in other countries where it is active, such as India. Clearly it hasn't happened in any volume.

Be interesting to know what Microlise & Nadeem Raza thinks now & what he wants to do with their stake in TRAK.
Microlise owns 10m shares & Nadeem owns 600k shares. And £1m CLN, convertible at ~17p.
The CLN is repayable or convertable in Sept. 24.
TRAK probably can't pay back the loan at the moment so perhaps it will be renewed, if the lenders agree. And the lenders surely wouldn't want to convert to shares at 17p.

Although the performance is not so good at the moment, what is the value of the existing hardware & software, existing contracts & recurring revenue.
For Microlise or A.N.Other one would guess that the value is higher than the current cap value, although the debt that goes with it reduces the selling price.

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Personally if I was Nadeem I would be inclined to , as the
1st step. remove the boss at TRACK since the turnaround over the last few years, which has cost a lot, has not imo delivered.
2nd step. Another round of cost costing. Cut back the investment/costs in R& D.
3rd step. Declare that operating at breakeven & invite offers for the company.

[smithie6] 24/3/2024 11:40

Box telematics

Who are they ?!

[smithie6] 24/3/2024 08:56

The partnership & investment by Microlise has, sadly, not delivered.

Will Microlise now want to take it over & support it or just walk away ?!
Microlise invested £3m for shares at ~22p, & perhaps another £1m later investment from Microlise (CLN ). I doubt they would be very keen on putting in more cash unless they became >=51% owners of TRAK (& could then do things like sack/appoint directors at TRAK & dictate policy at TRAK).

Perhaps the exec. chairman & Microlise will now buy the company for peanuts & shareholders get shafted ?

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Current assets situation is not pretty, excessively negative imo.

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Supposed to have ended most of the investment in R&D & done 2 or 3 rounds of cost cutting but in reality still capitalised ~£1m of development in H1 !!

Noting the weak position of the co. maybe a new person needs to be in charge & to do another round of cost cutting. The other option is notably higher new sales but that is not happening.

[dave2608] 23/3/2024 10:40

They must already know their course of action. After all, what was news to us yesterday wouldn't have been news to them. Surely they will of known of this impending crisis much, much earlier and will already have formulated their plan of action? Another RNS soon?

I could very well be wrong but I have this gut feeling that another fundraise is one step too far.

[dave2608] 23/3/2024 10:13

Put yourelf in Trakm8's shoes. They are virtually out of money. Are they going to go again or pull the plug? If they are going to go again, they'll need a tempting narrative to entice people in. Maybe Watkins is on the golf course looking for inspiration as I type. Might the "large optimisation software contract" carrot be dangled in front of people eyes? The alleged white knight on the horizon. Something along the lines of "bail us out so we can get this one over the line."

[dave2608] 23/3/2024 07:56

The situation here looks grim, very grim. They quite clearly need a fundraise and quickly. People however will be wary about throwing good money after bad (and IMHO that's exactly what they will be doing), so is it possible they won't succeed in getting a fundraise away?

I think the honourable thing would be to pull the plug on this dog and put it straight into admin. It will save more heartache in the long run. Let's have death by seven hundred cuts now, rather than a thousand later. Stop arsing about, talking about recoveries. It isn't going to happen.

Most of Trakm8's detractors don't even comment on them anymore. I'd imagine they are bored rigid with their shenanigans.

[knowbodyyouno] 22/3/2024 20:56

Smoke and mirrors buddy; smoke and mirrors.

[smithie6] 22/3/2024 18:12

primarily due to ongoing shortages of insurance capacity"

Does anyone know what this means ?!

Surely there isn't such a thing as a shortage of insurance capacity ?!
...as long a clients are willing to ay the price quoted by an insurance company then surely the "insurance capacity" for the motor vehicle sector is limitless, no ?

How many vehicle insurance policies in the UK ? 70 million people, say 40 million adults of 18-70 years, perhaps 20 million insured powered road vehicles, is that a reasonable guess ? Or too low ?

I struggle to see how there is a shortage of "insurance capacity", as TRAK claims.

[smithie6] 22/3/2024 09:48

Value if sold, perhaps to the big partner shareholder (who won't be at all pleased to see how much their shareholding has fallen in value today)

...the production factory/facility must have a value and the SaS income

In the last 2-3 years there have been numerous lay offs & cuts & the boss was confident that the company would now at least break even & yet the bad economic performance just keeps going.

Surely the big partner shareholder will now replace Watkins and/or take over the co.

[knowbodyyouno] 22/3/2024 09:29

Cash raise or buyout at not much higher prices then today's.

[smithie6] 22/3/2024 09:17

Indeed.

Any opinions ?
Does the major shareholder need to step in & take over since the current exec. boss doesn't seem able to run this company without making losses & needing never ending cash injections.

[smithie6] 09/3/2024 13:20

Are we hopeful for TRAK ?