Trakm8 Share Discussion Threads

[trakm8fan] 03/1/2020 08:29

I think Blondie and I are talking about different markets. Currently the black box insurance market is mainly aimed at kids and high risk individuals. This will have high churn and competitive pricing. The other end of the general insurance market is the people who only pay a couple of hundred quid per year and rarelychange provider. Yes you could try to convert these people to a new brand by offering then some form of deal based on driver monitoring with a black box but the margins are smaller so it will be hard to factor in the black box price and still make it viable. Yes I see how this can be spread across breakdown and insurance and yes AA cold do this so I'm not saying its impossible but it's a very different market to new drivers who pay something like 3 or 4000 for their first year insurance. Yes the AA deal can become massive but I dont see it as such a slam dunk compared to the other insurance companies who are starting to ship today. I'm not saying there is not potential here with AA and I'm not saying the AA deal isn't significant. I'm saying the new insurance deals shipping today or soon which we already know about will be much more transformative without the maybe this or maybe that. I think these deals have already transformed Trakm8 but we just have not seen their volumes ramping yet. Once they do we will have a very different business and can easily 2 or 3 multiple the share price from the effect of these deals alone. I think 2 or 3 times is very conservative and that's without the maybe this or maybe that from the AA deal.

[axdelta] 02/1/2020 16:00

Don’t forget that DL also owns Green Flag.

[trakm8fan] 02/1/2020 11:59

I think nowadays business like this is dictated by comparative price competitiveness and web traffic search engine spend. If a business like DL decides to spend more on click traffic or click advertising and make their pricing that little bit more competitive then they get more business. If their competitors do it then they get the business and so it goes. This is why I believe a well established insurance business could easily hoover up more of this market if they were willing to throw the money at the internet advertising or search engine optimisation and be willing to make their offering that bit more competitive. If you had the same deal offered to you by DL or AA then I'm not sure one brand would particularly hold more sway than the other. Both are house hold names even though AA have not been well known for insurance. Maybe if Mum and Dad were buying the insurance for their child then the brand might hold more sway but the kids these days would not care either way.

[knowbodyyouno] 02/1/2020 11:26

Perhaps it's a simply a matter of offering a holistic solution (breakdown and insurance). Does DL offer this?

[emptycup] 02/1/2020 10:46

Can't see how Smart Insurance is any different to DL's telematics policy. Blondy: why would AA see this work when DL's subscriber base has dropped?

[trakm8fan] 02/1/2020 09:49

I dont see any mention of a tracking device in the AA Smart Insurance blurb. Are we to assume this will be simple insurance or black box included?

[knowbodyyouno] 02/1/2020 08:54

Didn't realise this was on the cards, so soon. I did see a fairly non-committal response to your twitter account from AA, re smart insurance.
Good news though if true (and of course it takes off in a meaningful way).

[knowbodyyouno] 30/12/2019 10:37

Seems odd and of course a concern; although nothing can be put past this co. Truth is though, nobody really knows. Driving past seems less than concrete evidence of inactivity.

[dc2] 30/12/2019 10:13

Thanks trakm8Fan. It is a little worrying if they really do have an empty building (I think Shaftsbury is in the same boat as I cannot see what it can offer)

[cokehookerscars] 28/12/2019 00:05

I've not read it.

[nod] 26/12/2019 01:36

Has anyone on this board read this report?The contents page highlights how fragmented the vehicle telematics market is.https://www.prnewswire.com/news-releases/outlook-on-the-insurance-telematics-markets-in-europe--north-america-2019-2023---connected-cars-pave-the-way-for-mass-marketisation-of-insurance-telematics-300966085.html

[trakm8fan] 25/12/2019 08:25

dc2- I've had a few drive by and didn't see anyone coming and going. We know the new building is virtually next door to their current one. It still looks empty to me but I could be wrong. They said it was going to cost many millions to get going and I've not seen any costs mentioned. Surely they would be detailed. I assumed that with their lack of cash they had put this on hold. Again all assumptions. I did a quick Google search looking for information and found this piece which talks about it. Link and snippets below.


hxxp://www.manufacturing-today-europe.com/2018/10/18/trakm8/


Trakm8’s recently-announced, multi-million-pound investment in a new manufacturing facility marks the latest milestone in the company’s rapid growth.


It is also investing in a new factory opposite its Coleshill headquarters

[dave2608] 24/12/2019 14:00

trakm8Fan

"When do I think this will be?" I have absolutely no frigging idea when they will hit full capacity, if indeed they ever will. And as for going bust, then without the £3 million share placement last year and the £1.4 million loan recently then I suspect it very much would have been toast. Anyway Merry Christmas to all posters. Have a good one.

[dc2] 24/12/2019 11:13

trakm8Fan, do you have a link which suggests the building is leased but empty? I knew they took the building and I knew they were going to lease new equipment to automate more of production. However, I do not recall any reference to the building sitting empty and I even inferred that they were using it because they referenced automation as part of successfully cutting costs.

Thanks.

[trakm8fan] 24/12/2019 09:09

Filter me by all means.

I was the only person not saying the large contracts were bogus and the company was going bust.

Why is that?

If I am Mark Watkins and I was still the only person telling you the large contracts were not bogus and the business was not going bust then why would this make you filter me?

As far as I can see it I was the only person who read this right. If anything you should be filtering the people who got this wrong.

Continue reading the misguided waffle from the people who were saying this company was going bust and the large contracts were never going to happen. But wait they have all changed their tune now.

[trakm8fan] 24/12/2019 08:58

Dave

We know they rent the larger space. We know this will become their expanded / larger manufacturing facility. They will need to do something with it at some point. They will need to do this before they start hitting capacity with their current facility.

When do you think this will be?

[dc2] 23/12/2019 16:01

Whether is he an insider or not Merry Xmas to all. Let's hope 2020 is better for those of us with Stockholm syndrome.

[trakm8fan] 22/12/2019 09:17

Trakm8 Fans

Lets not forget where we are. I joined this board recently because I kept seeing talk about this company going bust and that the large deals were bogus or fantasy. Now we know the large deals are starting to ship but were delayed causing a cash crunch which still exists. Trakm8 sill need to order all the components to make all the trackers for these large orders which are now starting to ship. They order these from abroad right and there might be lead time differences in their supplier's order time compared to their promised customer delivery time and lets not forget manufacturing time. So this might require extra stocks of these components ordered ahead of time and possibly even the finished goods being manufactured ahead of time and kept in stock. All of this requires extra working capital. If you thought this business was going bust then you surely know they dont have much working capital. Scaling up for large customers always requires extra working capital. That is the same for any manufacturing business unless it has a well organised just in time setup. They might also be thinking about getting started on their bigger manufacturing facility sooner rather than later. You dont want to tell new large contract customers you cant meet their demand. Small businesses can quickly get into hot water when they start dealing with massive customers ordering massive volume. Thats all I see here. Yes the lack of working capital is bad but securing a loan for extra working capital is surely sensible if it is being used to scale up for the much much larger volumes being ordered and about to start shipping. I definitely prefer a loan to more dilution. I am pleased to see the business getting ready for what is going to be big volumes.