Trakm8 Share Discussion Threads

[dc2] 02/4/2019 10:50

I seriously doubt that he was contractually obliged to put in £125K of his own money into the recent placing. I am not saying he is necessarily all-knowing when it comes to the company, after all he signed off the interim report which included a going concern clause stating they would be good for the next 12 months - just a couple of months before the placing.

As for the market, it is not always right - there is a sheep mentally to some of this - look at the negative sentiment we currently feel. I have mentioned before that a book I read ("A random walk down wall street") pretty much states that share prices can behave like a seriously drunk person trying to walk home.

My prediction...... the update will confirm 35% revenue loss with the usual suspects wheeled out (Brexit, young drivers and AA delay). It will be followed immediately by 30,000+ new unit sales and very very very strong pipeline news (aka jam tomorrow) and some chat about the nature of clustering in contract wins (hence none so far but they are coming, honest). There will also be talk about new deal with Microlise which further proves the strategic relationship (but no real detail) - this may include re-visitng the Iran sale. If we are very lucky then they may announce a contract win but it will not be big. Share price up 20% on close.

Obviously, if it is a Friday RNS then it will read the same with a hidden sentence asking if somebody could turn the lights off as they leave. Share price down 50%

[nod] 02/4/2019 07:05

dc2, that looks like a good question but I don't know the timeline. When did he make his investment? I noticed the Strategy man and wife recently sold and bought back into ISA. Which also looks rather positive for the future.

[knowbodyyouno] 01/4/2019 18:18

Completely agree.

Presumably people are betting (because that's what buying AIM share is, generally) against a decent trading update and the prospect of new contracts being announced. I don't blame them. The track record of this BOD - including the FD - speaks for itself.

Remember a lot of those selling are likely to have made a decent return on the Microlise news, which came around this level. I suspect there won't be too much selling from this point onward.


The climate of uncertainty around Brexit, probably isn't helping either. May get a little boost if it's resolved one way or the other soon.

Cheers

[dc2] 01/4/2019 15:24

Hard to remain positive when the price keeps sinking prior to an anticipated update but I do wonder what Jon Furber (CFO) makes of all this. Surely, his £125k investment was based on the finances and future outlook of the company so why does the market think he is wrong!? Ideas anybody?

[40toolong] 01/4/2019 11:22

Here is the article for ST Subscribers

hxxps://www.thetimes.co.uk/edition/business/private-equitys-part-in-debenhams-downfall-z2w6fnrk5

[40toolong] 01/4/2019 11:20

Oliver Shah Agenda (his musing for the coming week)

And I quote

"The AA is on their 3rd plc chief executive, Expedia Founder Simon Breakwell. who is trying to digitise the business with an app and telematics".

[40toolong] 01/4/2019 09:43

AA update out on Wednesday, I am expecting some series push into telematics as Oliver Shah illuded to in the Sunday Times.

If it is a non-event for Trakm8 I don’t understand how they are going to dig themselves out of this hole....

[designer g] 01/4/2019 07:14

Hopefully will get a bit of positive news in the trading update and sales/financial figures.

[dave2608] 29/3/2019 16:42

Because maybe they can extract more in savings than the cost of their investment? Or maybe savings plus other strings attached benefits too?

It was a lovely publicity coop for Trakm8 who could cheerfully announce that they had attracted investment at a premium. In reality just a load of sugar coating. All IMO.

[dc2] 29/3/2019 16:35

I think my main point is that if Microlise were consuming Trakm8's resources for cheap devices then their investment is no different from a purchase as they would be strangling Trakm8's ability to recover - so why bother.

[dave2608] 29/3/2019 16:26

Well for starters I'm pretty sure Trakm8 announced on several occasions that they were
done with 3rd party manufacturing. It was part of their strategy going forward was it not? So for them to announce a contract win from Microlise would have raised eyebrows.

and exactly......If Microlise wanted Trakm8 they could have just waited.....But Trakm8 were probably in urgent need of cash at the time, so share dilution was inevitable. I'm guessing their first port of call, the banks, told them to do one. Therefore Microlise held the whip hand. Why on earth would they invest at a premium? Call me cynical but there had to be sweeteners involved. All IMO of course.

[dc2] 29/3/2019 16:09

Dave, I don't agree. This makes no sense. If this was just about manufacturing units then why not sell it as that. e.g. Contract win for x units from Microlise. No share dilution and, as usual, no idea of profit per unit. Share price would get a lift and then an offering.

If Microlise wanted Trakm8 they could have just waited.....

[dave2608] 29/3/2019 15:57

Re 40toolong's post 3661

I was thinking this at the time of the Microlise deal. What's in it for Microlise? I doubt anyone outside the company knows if there were strings attached to the deal but I'm guessing there were and manufacturing their units for sweet FA would have be one of them. Otherwise why on earth would they have paid a premium for shares in a company going down the pan? It didn't make sense. If they can extract enough savings from the manufacture of these units then does it really matter if their £2 million investment goes down the pan?

Maybe Microlise's ultimate strategy is another share injection of capital if the company becomes worth fk all, gaining greater control or even buying out the company entirely. I'm just speculating here of course.

One final point. They raised £3 million in December and were burning cash at the rate of 400k a month. The clock will begin to start ticking again if they don't start bringing in some meaningful contracts.

[dc2] 29/3/2019 13:51

Completely agree, especially your view about what is not priced in...... time will tell.

[dc2] 29/3/2019 13:32

Would of thought 22p was a natural support level, guess not. I am beginning to feel like I am in one of those disaster movies where just when you think it couldn't get worse.......wonder what the TU will be like - Titanic anyone.

On the positive, Microlise invested and kept the company afloat when it could have waited for the administrators so would hope they invested in good faith.

[napoleon 14th] 29/3/2019 13:32

bd - I agree. Mulling over a small punt on Monday, all being well,
but price keeps falling... quoted online 21.33p for 10,000 deal.

[tonybaloni] 29/3/2019 13:30

21p - you couldn't write it. Micronise must be well under water now.