Trakm8 Share Discussion Threads

[dave2608] 08/11/2019 17:17

Oh leased. Yep an expense from the off. Would be interesting to know how much they are
shelling out for it. When you think about it where would they obtain the money to buy it. They've hardly got two pennies to rub together.

[dave2608] 08/11/2019 16:42

Here's some more questions I'd be asking:

1. How much has this new factory cost?

2. Has the cost of this factory been expensed or capitalised? I put it to you that if it's been capitalised then eventually it has to be expensed does it not?

3. What are the running costs of this new factory and how do the running costs of an underutilised factory compare with the running costs of a fully utilised factory?

[knowbodyyouno] 08/11/2019 16:38

To be fair, most of the above happened whilst you were cheering them on Blondeamon. Writing articles commentating on each event as if it was further proof of a master plan. Blocking those who questioned your wisdom. However, each to their own. This and other BBs has its share of characters, to say the least.

Not sure why you're saying the AA hasn't launched when SB is clearly advertised as 'new' on the AA website. You yourself announced its launch on another BB, I recall.

[dc2] 08/11/2019 16:35

Whilst I did not fill in my details I am convinced it is live. Product placing on main breakdown cover page, option to select it, check of your registration to see if you can have a car genie and then a final option to confirm you want smart breakdown. What is not live about that?

[dc2] 08/11/2019 16:28

I can add smart breakdown for a fiver on the AA site, what do you mean it has not launched?

This is on their sign up page....it makes a specific mention of the car genie.

hxxps://youtu.be/IP0MC1xAsVw

[dc2] 08/11/2019 15:46

Agreed, I think you have pretty much summed up the problem - they are trying to grow too fast AND/OR have delusions about their actual size i.e. JW thinks he is the CEO of Shell. I also think they fell in love with getting contract RNSs out that in reality were small beer and are now paying the price.

[dave2608] 08/11/2019 15:43

To add to post 4296. To a very large degree the spending on R&D is what's going to make or break them and at the moment it's breaking them. They need a minor miracle to get out of this pickle.

[dc2] 08/11/2019 15:40

LMAO knowbodyyouno - so true

[knowbodyyouno] 08/11/2019 15:38

Says:

Essential:

Fluent in BS
Ability to spontaneously combust cash
Swing lead.

Desirable:

Watkins family relation

Or perhaps I've got the advert upside down!

[dave2608] 08/11/2019 15:34

Of course you're perfectly right dc2, it takes time but it's no guarantee. The heavy spending on R&D has to be of concern. For a firm of Trak's size it's a massive gamble. One at the moment where they've used up a considerable amount of chips. Put it on 35 black John.

[knowbodyyouno] 08/11/2019 15:33

They're also recruiting (fairly heavily, given the current financial situation) - 6 posts currently advertised.

[knowbodyyouno] 08/11/2019 15:32

There was some mention of that I recall. However, there's also talk of significant reduction in cash outflow, if you can make sense of that? In typical fashion it's pretty opaque.

Should get an idea of how the sales team is performing when we see the H1 results and get the outlook for H2.

[dc2] 08/11/2019 15:27

No idea Dave but I suspect these things take time. What I think I am more concerned about (this is from memory so not necessarily true) is that they state they are still spending heavily on R&D (e.g. £1m tax credit). This is more surprising given their current financial position.

[dave2608] 08/11/2019 15:21

I'll throw another grenade in. They were cutting costs yeah? Forget the amount now but this wasn't going to drop into the bottom line as it was I believe going to be
spent on beefing up the sales team. Where's the payback from this beefed up sales team? Is it just over the mountain?

[knowbodyyouno] 08/11/2019 15:10

That's how I read it, yes.
But I take Dave's point about the veracity of Trak RNS, historically.
Also, in recent times, H2 has failed to deliver.
But let's see.

[dc2] 08/11/2019 15:04

Correct me if I am wrong but aren't those two statements saying:

1) That year on year they will have low double digit growth (that does not guarantee profit or loss either way)
2) AND that this growth should be enough to post a small adjusted profit (so a loss until adjusted)
3) BUT the first half will be a loss but in the right direction to allow them to achieve the stated adjusted profit yoy (reliant on H2 coming in as predicted).

[dave2608] 08/11/2019 14:59

So it's going to be a loss but considerably lower than £2,500,000. Ahhhh but hang on a moment, this is adjusted loss. Adjusted gives plenty of scope. Let's face it, it could be many things an accountant wants to cook up. You're groping in the dark here.

[dave2608] 08/11/2019 14:03

Surely after all the bullsh*t RNSs a modest recovery has to be in doubt, even with adjusted figures. But who knows.

[dave2608] 08/11/2019 12:54

If you believe the rhetoric that emanates from this company then the share has always been a screaming buy. Once you stop believing the rhetoric you look at things through a different prism. I've been on both sides of the fence. One day, who knows the rhetoric and reality might be aligned and perhaps no one will believe the rhetoric. If you don't mind I'll hold my breath on that scenario.

I suppose the optimists here believe that all the bad news has been priced in thinking that a modest recovery will move the share price upwards (That presumably would be a recovery based on ADJUSTED figures) maybe leading to this much awaited spike that a few off you want to offload into. The question is, if that scenario plays out, who is going to blink and offload first?


P.S. I diplomatically referred to it as rhetoric. Others might use different vocabulary.

[knowbodyyouno] 08/11/2019 08:41

No H1 profit was mentioned in the last update:

"Half Year revenues are expected to be modestly ahead of last year, direct and indirect costs significantly lower. The Half Year adjusted loss therefore should be considerably lower than last year."

Market expectations for the year end were a small profit:


"market expectations are for a relatively modest recovery (low double digit growth) in our revenues and very modest adjusted profitability for the financial year as a whole. The Board is confident that this will be achieved."

The RH issue, was also mentioned in last year's final results. However, we don't know whether the costs were included in last year's loss. My guess is they probably weren't, but they must have been factored into this year's expectations.


We also know that the AA contract has commenced. The evidence of this is on the AA website. Whether it's lucrative, of course, is another matter but the roll out has happened so that is something of a positive.

We also know that there are at least 2 other large roll outs immanent (if they haven't taken place already): Ingenie and Lexisnexis.

Personally, I remain extremely skeptical and concerned about my investment here. It's had me up at 3am worrying about it, in the past.

The BOD has an awful record and perhaps you (and others) are right and the jig is up. Even if it's not up right now, it may not even be a viable business going forward, for the reasons others have mentioned.

However, as of yet, there is no hard evidence it's about to go bust.

That said, I've just seen a '2' share trade, which perhaps means an RNS is due. If so, let's hope it's not a PW.

I continue to hold.