Trakm8 Share Discussion Threads

[michaelmouse] 22/3/2020 21:01

No you're a total irrelevance to everyone I'd guess. :)

[michaelmouse] 22/3/2020 17:43

One last thing. I've mentioned it before but it's worth reiterating. Whatever is going on, you can't opt not to have car insurance. That's a big deal at the moment for Trakm8 because they serve many of the big car insurance companies.

[michaelmouse] 22/3/2020 17:37

blondeamon - I retired 5 years ago on the back of my micro-cap investments. :)

In fact Trakm8 was a contributory factor.



I've noticed over time that you just don't seem to get investing. You're a buy high sell low investor. I think FUTR was a recent example? I'll retract the "scum" comment since you appear to be taking out your frustrations and disappointments on others instead of revising your own investment strategies. You're quite right about 7digital, it was a disappointment for me (there are others), but I took my losses on the chin and have since made a bit more money back because I know the company so well. Interestingly 7digital still survives.



As regards Trakm8, these are extraordinary times for all companies and there are no guarantees for any company. However, I'll address some of your assertions to present a more balanced view of prospects.

Firstly, the March trading statement was very re-assuring. The second half performance was excellent.

The balance sheet should be looking far stronger than at the half-year, and recurring revenues will have increased. Several new insurance and automotive clients have come on-line in the past six months

Most importantly, they generated £1.4m cash at the half year so I'd imagine the full year performance will be hugely improved from recent years.

In the current climate, I'd imagine they'd probably cut R&D expenditure altogether and with significant recurring revenues they should be able to generate a healthy FCF.

The vast majority of their clients are insurance and automotive and, if anything, consumers are more likely to opt for telematics devices for their cost savings and security. If you're cutting down on your driving then a telematics device makes perfect sense i.e. less mileage, less insurance costs. For example, their client "By Miles" will see telematics policies boom surely?

As regards the AA, I think the add campaign is terrific and I'd imagine 'Smart Breakdown' will be very attractive to many who just want to get in and drive (that's most of us). Interestingly, and as an aside, I see that after many years, a new series of 'Red Dwarf' has been commissioned.

Furthermore, Fleet's like Iceland (another huge client) are likely to be expanding at the moment on the back of the current unprecedented demand on supermarkets. Supply just can't keep up with demand.

Trakm8 have undoubtedly had a couple of torrid years, and just when they'd turned the corner, they're faced with Covid-19. However, for the reasons stated above, I wouldn't write then off just yet and I'd guess in the grand scheme of things they are far better placed to weather the storm than many.

Don't get bitter blondeamon, but think rationally and buy into bear markets not advanced bull markets, it's far more profitable in the long run.

[michaelmouse] 22/3/2020 13:24

posts 4803 and 4804 - Thanks for verifying my post 4801, you are indeed absolute "scum". That's why I rarely post here.

[dc2] 22/3/2020 12:59

Blondeamon, personally I believe you want this company to fail to i) vindicate your decision to close your position and ii) seek revenge on the BOD. This is evident with your recent review of the SB product and whilst you are trying to persuade others to follow you it further depresses the share price and is also at odds with the aforementioned review; it appears that PIs are cannon fodder i.e. I have your interests at heart whilst publicly slagging Trakm8 off. This is reinforced by what appears to be you talking the company up whilst you were selling.

Who knows the full impact of the coranvirus outbreak. However, I am seeing the government guaranteeing 80% of PAYE and a renewed focus on the transportation of goods. I also note that their last TU suggested that they were on target (ok, things can change). As for dongles, private or public transport - what is your preference.

Time will tell and you may be correct and I may be that moron you speak of.

[gwr7] 22/3/2020 12:33

Well said.

[dc2] 21/3/2020 22:05

Bit harsh IMO, I think we all know what Blondeamon was trying to convey.

[michaelmouse] 21/3/2020 16:56

After watching the scum of the earth queueing outside supermarkets and then emptying the shelves I didn't think that I'd see people sink much lower. However, up pops blondeamon to prove me wrong.

"You'll see in 20 days from now deaths in the thousands every day."

With that comment do you think you're being clever or funny or perhaps both? You are one sick individual.

[trakm8fan] 20/3/2020 10:04

If Ingenie, bymiles and Endsleigh are fair old fish then Lexis nexus, AA, EE, and intelematics are whales.

[nod] 20/3/2020 07:56

I'm impressed that trakm8 has committed to and published a business continuity plan. All publicly listed companies are legally obliged to continually monitor and identify risks and to have a continuity plan. Many companies don't highlight their continuity plans via an RNS because they are often rather weak or incomplete."Safety Inventory" is the correct wording and there is a formula.https://virtocommerce.com/glossary/how-to-calculate-safety-stock

[knowbodyyouno] 20/3/2020 07:05

I think the word ‘safety’ is a typo and should read ‘satisfactory’. Only way I can make sense of it.

[knowbodyyouno] 19/3/2020 21:25

Lexis nexus, AA, EE, and intelematics are pretty big clients in my book. Ingenie, bymiles and Endsleigh are fair old fish as well. But hey ho, we’ll see.

I’d be interested to see this list of tenders they’ve recently lost out on?

[trakm8fan] 19/3/2020 18:46

They have already won that big client it's just not started shipping yet.

[knowbodyyouno] 19/3/2020 18:15

Yeah doesn't make a lot of sense.

The PM's presser today was more upbeat. 12 weeks disruption; if you believe him, of course.

[dc2] 19/3/2020 18:01

Their COVID update reads well....

www.trakm8.com/news/covid-19-customer-statement-from-trakm8

"Thanks to the robustness of our UK-based manufacturing capabilities, we hold safety inventory as finished goods and as components within the operations and in our supply chain. "

update: whatever that means

[40toolong] 19/3/2020 17:25

Guys, they have £5m of debt and cannot win a big client to save their lives..... this is over but GLA!

[trakm8fan] 19/3/2020 17:08

They said they will make a small profit this year and their latest RNS confirmed this. That's not burning cash. It is the opposite. That increased revenue turn around only came in from the last few months of the year. If it continues to come in at the same rate - so does not increase or decrease - they will have 12 months of stronger revenue so should make even more profit next year.

I'm disappointed to see Blondie turn from fierce advocate to indecision, back to advocate again and now trying to rubbish Trakm8 by scare mongering.

[michaelmouse] 19/3/2020 17:01

knowbodyyouno - Yes my guess is that since Trak is a viable business i.e. profitable for the full year with strong recurring revenues and potentially strong growth then they could (if necessary) access up to £5m in loans with zero interest for 6 months.

Always difficult to be optimistic when every day is the 'end of the world' but markets will recover and the companies that survive will bounce back strongly.

[knowbodyyouno] 19/3/2020 16:49

I agree MM - particularly with your comments on the market that Trak is in.

Also, Trak will benefit from the gov response to the crisis (tax/rates exemptions and 0% interest loans). There's certainly not much downside here; but plenty of up, if the last update is accepted.

[michaelmouse] 19/3/2020 15:53

It's already priced to go bust blondeamon at market cap. £5m, but I'm not sure about your assertion that they must be burning cash like there's no tomorrow?

I appreciate that cashflow has been a concern in the past, but Trakm8 are heavily weighted to Insurance and Automotive, and everybody will have to renew their insurance annually Covid-19 or not. Similarly with breakdown.

I'd imagine recurring revenues have improved quite substantially in the last six months or so given the March 12 trading update.

As for the AA, even if the company were to only survive by a debt for equity swap (let's say) that would be painful for AA shareholders but given the push with SMART BREAKDOWN I'd imagine they'll continue to use Trakm8.

Many companies are priced to go bust in this climate. A very few will, but the ones that survive will bounce back with a vengeance.

Let's see what the next few weeks hold.

[dc2] 19/3/2020 15:38

Have an average price of 100p - not going to worry about getting out for 8p over 0p.

They have £10m recurring revenue - they could do a lot before they shut up shop. Road transport is more important than ever so I don't see companies like Iceland pulling the plug on their contract. Calor are also an essential service.

The AA etc may be a problem (especially given recent reviews ;o) )