Trakm8 Share Discussion Threads

[pj 1] 25/11/2015 14:09

Well if you look back to March 2015 Results I have this on a then x18 PE with a .61PEG

I have it with a forward PEG of 0.3 2016 and .42 2017. And the chances of them beating forecasts...........

[siwel3] 25/11/2015 13:11

It's a big PE to hold up with only a 'modestly exceed current expectations'. It needs more positive news wins to keep the bubble expanded and expanding.

[cfro] 25/11/2015 11:21

Many thks for mentioning the video gargle, i have watched it and was really impressed!

[luckymouse] 25/11/2015 02:31

11/23/2015 - FinnCap Boost Price Target - GBX 250 -> GBX 318

[gargleblaster] 25/11/2015 00:22

John Watkins has done a 7 minute interview on proactive;

[...]

[ostrading2] 24/11/2015 15:48

could you post the content of the article?

[tromso1] 24/11/2015 14:34

Simon Thompson bullish again today-

[woodcutter] 24/11/2015 08:41

paul scotts write up pretty decent

hxxp://www.stockopedia.com/content/small-cap-value-report-23-nov-2015-nxr-trak-plus-bon-112746/

woody

[gargleblaster] 23/11/2015 16:12

And here it is! Presumably ST will do a write up as well. Finncap's EPS forecasts up from 11 to 11.3p and 15.4 to 15.9 for 2016 & 17.


Monitoring drivers' behaviour, measuring fuel emissions and tracking the location of vehicles helps motor insurers to price their policies and vehicle fleet managers to improve efficiency and security. Growing numbers turned to Trakm8 (TRAK) - which manufactures technology collecting such automotive data - in the first half, driving adjusted cash profits up 70 per cent to £1.9m.

The telematics group, whose customers include AA and Direct Line, grew its installed base of devices by about three-quarters to 135,000 units. The resulting surge in monthly service fees fuelled a 65 per cent rise in recurring revenues to £4m. And a 21 per cent increase in like-for-like orders points to further growth down the road.

Organic sales fell in Trakm8's smaller product division as management exited lower-margin manufacturing contracts and focused on supplying the core business. It also shelled out £500,000 to hire more engineers, improve customer support and install a second automated assembly line. Those investments were supported by operating cash flow of £1.3m - more than the group generated throughout the previous financial year.

Trakm8 also acquired and integrated DCS Systems, adding dashboard cameras and other video technology to its offering. Broker FinnCap raised its forecasts and now expects full-year adjusted EPS of 11.3p, rising to 15.9p in the year to March 2017 (from 5.9p in FY2015).

TRAKM8 (TRAK)
ORD PRICE: 266p MARKET VALUE: £80m
TOUCH: 262-270p 12-MONTH HIGH: 298p LOW: 63p
DIVIDEND YIELD: NIL PE RATIO: 35
NET ASSET VALUE: 28p* NET DEBT: 25%

Half-year to 30 September Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2014 8.5 0.7 2.5 nil
2015 11.7 1.2 4.3 nil
% change +38 +73 +72 -

*Includes intangible assets of £6.4m, or 21p a share

IC VIEW:

Trakm8's investments, acquisitions and its technology's mounting traction should underpin further growth. Its shares have soared 24 per cent since our recent buy tip (215p, 8 Oct 2015) and now trade at 17 times forecast earnings for the next financial year. That doesn't do justice to the group's stellar growth prospects. Buy.

[gargleblaster] 23/11/2015 14:43

IC "stand by their buy advice". Hopefully they will do a brief write up in the next day or so /Simon Thompson should cover.

[cfro] 23/11/2015 13:22

As i said earlier, i do urge investors to have a good read through the outlook and operations updates section, if not already done so.

Lots of detail in there with talk of trials and plenty of intimation of potential and growth prospects:

Capex of £0.5m has been high during this period but we believe we have now completed some key short term investments in order to prepare for stronger growth levels.

and..

We have expanded our sales resource and as a result developed a good pipeline of opportunities, with a large number of significant trials in progress. We anticipate that sales will continue to grow strongly in this area.

[martinthebrave] 23/11/2015 12:26

Very few people taking profit. Buys are currently three times sells. An intra day rally to follow imo.

[parttime] 23/11/2015 12:26

PJ,

I'd suggest it was s.b.'ers that are either taking profits or stops. I'm a P.I. and had the share price breached £3.00 then yes, I'd have taken some money off the table. However as mine are fully paid for and looking at the interims I'm happy to hold...

It will be interesting to see what the press stories will hold over the next week or so..

Edit: I agree, a period of consolidation is needed to see where we are as people sort out their positions.

[woodcutter] 23/11/2015 12:24

Hargreave Hale taking some profits, i expect that's had influence on the share price today



wc

[pj 1] 23/11/2015 11:21

Good news isn't being bought anywhere that I can see at the mo, P.I.s' looking to take profits. Irrelevant if your looking long term

edit-I also would not be disappointed to see a period of consolidation now

[treeshake] 23/11/2015 11:17

amazing, some of the best results Ive seen and the slide continues - truly amazing reaction to the figures.

Oh well, have to find some cash from the back of the sofa.

[cfro] 23/11/2015 10:47

I've actually decided to add further on this dip. Seems rather odd to be up 8% at the open and now down by 3.5%. Not reflective at all of the companies current trading position imo.

The outlook statement and updates are worth reading through. Quite a lot of info there. They have new devices that will be out in Jan plus they continue to innovate and invest in R&D.

The acquisition of DCS back in the summer is particularly interesting. This has bought in some interesting camera tech that the group can integrate into their systems. Volvo are using this tech in their new line of cars.
Im wondering if this technology will become mandatory certainly in new vehicles in the not too distant future?

Worth finally pointing out that TRAK had sold 'only' 135k units. It takes little in the way imagination to understand the sheer size of the potential market here for these kinds of products.

[interceptor2] 23/11/2015 09:57

Exactly my thinking cfro, I decided not to add to my holdings today, but will on the next contract announcement in the US, or the next ahead trading update.

[gargleblaster] 23/11/2015 09:39

Finncap has today lifted its target price to 318p (from 250p).

[cfro] 23/11/2015 09:33

With the results now out of the way it is just a matter of awaiting further contract news in the States, imvho, of which i feel fairly confident of them achieving.

[woodcutter] 23/11/2015 08:21

yep IC2 the net margin growth looking good. if they can retain similar revenue/admin costs ratio going forward we're going to see decent bottom line growth with net margins continuing to improve.

thankfully i have been accumulating a little while before todays H1 results and hopefully once the noise of today settles down we can see further opportunities to add. well done to all those who had the foresight to see the possibilities here early on and bought in sometime ago, the potential is very strong

aimho

woody

[interceptor2] 23/11/2015 08:02

Modestly ahead at this stage to the full year shows confidence, yet also sensible constraint, as second half progresses they have left room for further upgrades imo. Worth mentioning that recurring revenue increased from £2,404m to £3,976m, which along with net margins increasing to £10.58% from 8.4% is significant.