Trakm8 Share Discussion Threads

[dc2] 19/3/2020 14:15

Good luck in the future. Personally, I think QTX's approach to contract wins is better - small sizes require less effort and they bubble over - imagine losing a large contract.

Where did you get the tender list from? I would be interested to see who is winning these contracts.

[knowbodyyouno] 19/3/2020 14:09

Fair enough; sounds reasonable.

All the best with your future investments.

Stay safe re the virus, as well.

Cheers

[40toolong] 19/3/2020 14:02

Had enough of this. All the big tender results are coming out. None are trak. Not going to watch this eek itself out with small orders and a crumbling AA.

Happy to leave this one. BOD is not clear with the market. Not sure it will make it though the storm. GLA.

Lesson learnt. Ignore the tech, look at the take up. If people ain’t buying. The company won’t survive, no matter how “next generation” it is.

[dc2] 19/3/2020 13:36

single digit sell - Blondeamon was right.

Hope all are keeping safe. Markets are savage at the moment - just what we need.

[dc2] 13/3/2020 18:08

Thanks for the response shareguru1. I get all of that but if it was all bad why did SamSara enter the market recently. I think £5 per month for OBD is something to work from - data prices are now very cheap and they could use land and expand tactics once they are in - I like their platform. As for tenders, depends on the company (worse if it is a council) and what they want. Sounds like basic telematics and in that respect you are correct in saying that it is two a penny.

Knowbody, lol - I checked the SB Red Dwarf ad and had no idea what you meant - wrong ad. As for the so called feedback - it looks like a disgruntled shareholder/employee BECAUSE they are not reviewing the product but slagging off the company that makes the dongle - I credit people who watch these things with some level of intelligence (curiously, I am asking myself why I need to spell that out if it is so obvious). If it is blondeamon's review then it is a real shame.

[knowbodyyouno] 13/3/2020 15:48

That's what I was referring to as 'interesting reading' on the other BB. In other news, there's a pretty good vlog review from a female driver that AA gave SB to test for them. I felt it kind of summed up the sorts of aspects women, in particular, would like about the app.

[shareguru1] 13/3/2020 15:24

Their financials / stability will be an issue for the big tenders as thats part of the process.

[dc2] 13/3/2020 14:57

Blondeamon, I know you lost on this but it is a bit harsh of you to start slagging off Trakm8's Smart Breakdown

"This product is unreliable, they are manufactured by Trakm8 which has recently recalled many of their products due to defects. It's basically the old Genie, with the same bugs."



Do you have any evidence that it is basically just the old genie with the same bugs?

As for their recall of the RH600, they put their hands up to it and fixed the problem. I am sure they would have do the same for SB.

Update: I apologise if someone posted under a fake account.

[knowbodyyouno] 13/3/2020 11:51

Well, I think your last point is pretty apposite: I'm not convinced our resident naysayers are investors. Certainly not in Trakm8, that's for sure.

[trakm8fan] 13/3/2020 11:48

Well said Horned Eagle

6 months ago everyone said this would fail. Revenue was dropping and they were making a loss. We were all hoping for a turn around. Well this is that turn around. They are now making a profit and that turn around has only just happened in the last few months. That increased monthly revenue will continue all next year hopefully and that will mean much much better numbers.

People are just looking for bad news when all I see is good news.

The business is now making money.
The business is now reducing debt.
The business is now clearly shipping more product.
The business is now getting more recurring revenue which will hopefully stick for 12 months or more.

If you can't see good news there then I'm not sure how you call yourself an investor.

[dc2] 13/3/2020 11:12

I think I am more interested in knowing at what stage did they get to and what was the reason for not making it to the next round (or winning them) e.g. price, tech or the incumbent winning because the tender was a paper pushing exercise. 13,000 units sounds like a price issue to me.

[knowbodyyouno] 13/3/2020 10:55

2 tenders is it now? Last week it was 1.

I assume they are bidding for tenders, constantly. In a competitive market no one takes them all home.

Be more interesting how you come across this valuable information - including the now (apparently dead in the water) sale to Geotab. `Remarkable.

[horndean eagle] 13/3/2020 10:16

What is with the negativity. Huge turnaround from H1. More devices plugged in now. Higher recurring revenue and cost base reduced markedly. Not sure whether your points are particularly valid squeamish. They took on additional financing to deliver AA order. Working cap position should unwind and net debt more manageable. There is real independence on the board re Microlise. They key for TRAK was to get their cost base in order and their recurring revenues up. They seem to have done that. Focus then moves onto additional sales and at that point operational gearing should start to kick in.

[squeamish1] 12/3/2020 23:18

I'm concerned Trakm8 is now too small to win the deals it needs to survive and grow.

A key question for all procurement managers is counterparty reliability. Price, service, product are important, but you need assurance that your supplier can deliver for you over the life of the contract.

Trakm8 want and need large fleets and large insurers going down the API/data exchange route, for the recurring revenues but also to guarantee a minimum scale across their product set and back office. Scale that equips you to sell to higher margin small & medium size clients.

The challenge is that Trakm8 is now so small in market cap terms, with weak financials (net debt rising, well noted cash flow issues) and weak governance (essentially controlled by the Watkins family, with no real independence on the board). For Royal Mail or British Gas or any other large fleet client, Trakm8 is likely to fail their counterpart selection criteria. Why invest £££ embedding your systems with a supplier who might not be around in five years?

The AA have probably reconciled themselves to buying out Trakm8's tech from the administrators if Trakm8 fails. For others, Trakm8 may be a risk too much at this point. Probably why we are seeing so little in terms of contract wins. The only solution I see for shareholders to come away with any value is for the BOD to put it up for sale to a bigger competitor who wants extra volume and an enhanced product set - Watkins is probably too arrogant for that, though.

[knowbodyyouno] 12/3/2020 19:08

40toolong

Are you eyes and ears open, my friend? Take a look around you, there's good reason why this share went down today.

Personally, I think it held up well, given the broader carnage and panic. The share prices of companies that routinely post profits in the billions are being decimated. Barclay's under £1.! Extraordinary.

[horndean eagle] 12/3/2020 19:07

Its actually very positive. Small adjusted profit for the year means they made over £1.6m in profit in the 2nd half. Shipping to AA may have flattered things somewhat but they have repeat orders lined up and all these extra units helps with recurring revenue. What has also been flagged up is they have taken a lot of cost out of the business and that started to feed through in the second half. The full benefit of which will show next year. I guess wider market not exactly helped today but still disappointing that no one really caught the significance of the very good second half.

[shareguru1] 12/3/2020 17:42

I suspect they probably will get bought, as the market consolidates.

[40toolong] 12/3/2020 17:19

Only Trakm8 could release a message saying they are going to hit target and lose 7%. The market hates this stock so much, it just needs to be sold to someone else.

[knowbodyyouno] 12/3/2020 09:49

Hopefully, he'll purchase some shares.

[dc2] 12/3/2020 09:24

More sales peeps and further BOD dilution is probably a good thing but another BOD mouth to feed (already £1m).

[michaelmouse] 12/3/2020 07:34

knowbodyyouno - Don't post much these days. In general BBs, tipsters, tweeters are absolutely awful. Also I tend not to comment on my share dealings since the companies I pick are generally illiquid micro-caps with large price fluctuations.

Suffice to say though that at a market cap. of £7m Trak has been in it's own private little bear market for some time. It's priced to go bust particularly when compared to other telematics companies e.g QTX etc.

It's an encouraging TS. Revenues must be around 3 times the market cap now? ATB.

[knowbodyyouno] 12/3/2020 07:24

You still in MM?

Heart was in my mouth when I saw this mornings RNS ..been quietly loading up at these levels. Thought it was a PW - some nonsense about the effect of COVID19. However, it's a little more short on details than one might expect.

Wonder if this means we'll not get another update now until final results?

Slightly odd you might say; but happy they're going to hit their numbers this year.

Any thoughts on the new appointment?

[michaelmouse] 12/3/2020 07:20

"The Company is also pleased to confirm that the trading for the year ending 31st March 2020 remains in line with previous guidance of increased revenues and modest adjusted profit before tax"

Currently valued at a measly £7m.