Trakm8 Share Discussion Threads

[agaff] 02/7/2018 16:29

I got accused of wanting information "spoon fed" to me. Despite questions about when results are due (which is easy to find on the trakm8 website) being answered with links and pasted texts. Anyway, I will try my best to add value to this thread and am not here to antagonise anyone - I will write only about the share going forward and will try to with hold snarky comments ;)

Btw - I did read the thread back to 2017 last week but did not find much information on the capitalisation of software development expenses or about the exact accounting for these telematics boxes. If I find the answers, I'll share them on this thread. I think this is very important part of the story. This company is messy and to understand what is happening behind the numbers might shed some light on the moving pieces.

The results this morning contained a couple of red flags that I also need to look into.

1) Why was there customer inventory build up in H2? This boosted the results (but they are paying for it next year) and without this they would not have generated any cash this year again (despite huge R&D tax credit).

2) The H1 guidance (yoy total revenue decline) suggests relatively meagre Solutions sales after adjusting for CEM loss. It suggests Solutions sales will be growing around 10-13% ish yoy which is a slower rate than in the last couple of periods despite a plethora of contract wins. Why is this?

3) R&D tax credit: how much, if any of it, is recurring?

[bhxian] 02/7/2018 16:03

40tl

Thanks.There will always be the doubters.

[40toolong] 02/7/2018 15:37

Found it in their 2017 report, see below

We provide our self-install Connect 300 device to the AA for their newly launched Car Genie product which is designed to help AA members gain insight into the health of their vehicle. The device is able to read and transmit real-time location data, driver behaviour data and diagnostics information. The intelligent firmware and configuration on the devices is provided by Trakm8 utilising a unique vehicle specific configuration service.

[dc2] 02/7/2018 15:25

Agreed, good video. As for the car genie - I pointed to an OBD device (asking if this was the car genie) at the CV show and the rep corrected me by pointing to the correct (smaller) device. Not ironclad proof but good enough for me.

[40toolong] 02/7/2018 15:22

Agreed Blonde, VERY confident is great news.

Strange that when he talked about the AA he mentioned the “yellow fleet” and not Car Genie.

Do we have any proof that Trakm8 is the supplier of the Car Genie product?

[dc2] 02/7/2018 12:39

Interesting analysis walbrock. I do have a question based on your point about the capitalisation of development costs. What did they gain from doing this, what would the alternative be (a profit warning when they already did this)? If it is only to artificially inflate profit then surely everybody is going to see through it (as you have - you are certainly not alone in raising it). Thanks.

[walbrock82] 02/7/2018 12:02

My analysis of Trakm8 Holding and other companies reporting today:

[40toolong] 02/7/2018 10:16

Profits will come when you are making and selling hundreds of thousands of units which they will be able to do

[horndean eagle] 02/7/2018 10:10

The other thing is they are still capitalising a huge amount of R+D spend. On a more conservative accounting basis it isn't making much in the way of profits.

[40toolong] 02/7/2018 10:02

Breakout!!!!!

[knowbodyyouno] 02/7/2018 09:40

"Investors spotted the 2018/19 weighted to H2 bit."

Agreed. Acceptable to LTHs - but a flag to short-term/quick profit seekers, I would imagine.

[weatherman] 02/7/2018 09:28

Investors spotted the 2018/19 weighted to H2 bit.

[40toolong] 02/7/2018 08:53

Welcome to the weird and wonderful world of Trakm8 results day....will sort out in a few days...

[sh1984] 02/7/2018 08:50

Why is the share price down? results are looking good.

[40toolong] 02/7/2018 07:58

Love the growth story on this now, long term hold and perfect time to top up

[bhxian] 02/7/2018 07:37

No more than promised and still going the right way.Compare this with QTX -single digit growth multiple (c30) P/E.What in earth do they the shareholders see in that share.Its all very well switching the lights off to save cash -laudable though that is -where is the growth investment?

[40toolong] 02/7/2018 07:35

The capacity to produce a million units a year is encouraging, the AA and other auto clubs around the world will need that!

[brucie5] 02/7/2018 07:29

Decent results.

[40toolong] 02/7/2018 07:16

Strong results and clear words for once!

[40toolong] 01/7/2018 12:03

Wise words from you both.

Quantum of orders. I remember that.

Sell more stuff!!!