Trakm8 Share Discussion Threads

[michaelmouse] 25/11/2020 07:34

"The AA Directors are confident that the AA Group's service and digitally-led strategy, focusing on innovation and delivering excellent customer service, will ensure that the AA continues to adapt to market conditions and stay ahead of its competitors. In addition, the AA Directors believe that ongoing investment in its digital platform, including the AA app, will continue to improve members' and customers' experience and help nurture further loyalty to the AA brand." A big part of this is using Trakm8's products and services!!!

[michaelmouse] 25/11/2020 07:19

hTTps://www.londonstockexchange.com/news-article/AA./recommended-cash-acquisition/14767979 Recommended cash acquisition from the AA this morning at 35p. This is excellent news for Trakm8. The AA can now press forward with Smart Breakdown and their other initiatives using Trakm8's telematics telematics with renewed vigour. From the AA this morning:- "However, the Consortium believes that the AA has been held back as a result of underinvestment and high levels of debt. The Consortium intends to inject additional funds into the AA to deleverage the business and provide it with the operational freedom to drive the business forward, to better serve its customers and capitalise on its considerable strengths."

[michaelmouse] 23/11/2020 14:45

Patience is the key as always!

[michaelmouse] 23/11/2020 14:44

The shares are highly illiquid. If performance continues to improve and they've already said today that:- "the Group expects revenue in the second half to be significantly higher than the first half given current orders, even with a reasonable downside scenario taken into account for the ongoing impact of Covid-19." It's shares could easily double in a day and multi-bag in a few days/weeks. It happens quite regularly to illiquid micro-caps. In fact it's happened here before. I think this time though the rise would be sustained over the longer term. Three very small buys today at increasing prices. If volume picks up then......

[michaelmouse] 23/11/2020 13:24

Post 5483 - Employees can be re-furloughed until March '21 if necessary. Clearly, at present it's not necessary. A very good sign. Obviously not as useless as you then.

[michaelmouse] 23/11/2020 13:11

From today's report:- "Gross profit margin has increased to 62% (H1 2019: 53%). This is due in part to the higher recurring revenues as a percentage of sales but also due to the vigorous actions taken over the past 24 months to introduce hardware with lower costs, reduce the direct labour costs and to reduce the cost of communications and installations. This trend is expected to continue as further cost improvements are delivered." Do you need literacy and numeracy lessons blondeamon. Perhaps you, Dave and Andre can attend night classes together?

[michaelmouse] 23/11/2020 13:04

If anything you said was actually factual I'd respond, but it's not. You can't even get furlough correct. Furlough currently extends until March '21 the end of Trakm8's H2. .

[michaelmouse] 23/11/2020 12:54

dave - You have demonstrated that you can't even grasp the concept of their SAS model in earlier posts or even a simple calculation to work out FCF. Give up. Whatever happens to Trakm8 (and its looking far more promising than for some considerable time) you'll remain a complete dunce and what's even worse you're demonstrating your stupidity for all the world to see. Study and read more, post less and you might eventually be able to make informed comments.

[dave2608] 23/11/2020 12:44

"Improved cash generation from operations due to significant reduction in losses, PAYE & VAT deferments and strong working capital actions" Perhaps someone can kindly explain how PAYE & VAT deferments are cash generative. OK you can argue they are temporarily until the cash has to be paid to HMRC. But in the long term? And what the hell are these strong working capital actions?

[michaelmouse] 23/11/2020 12:23

HE - post 5473 I'd mostly agree with. The half-year report confirms my previous assertions about all the figures and potential for a turnaround. The company is pretty much priced to go bust, and I think (lockdowns not withstanding) that a profit this year is now possible and 2021 could see a return to good growth. Never give any advice but I'm very happy with the interims and outlook.

[dave2608] 23/11/2020 12:19

IMO Trakm8 mislead people. Agenda? Nothing beyond countering what IMO appears to be misleading statements that the company puts out and blatant ramping on here. Who knows I might soon grow tired of it.

[horndean eagle] 23/11/2020 11:32

Dave - You do spend a lot of time analysing TRAK. What is your agenda? Why do you hate TRAK so much?

[dave2608] 23/11/2020 10:39

michaelmouse23 Nov '20 - 07:49 - 5457 of 5472 "Adjusted losses reduced 80% to £0.3m." Cost of sales to Sept 2020 - £2,804,000 Cost of sales to Sept 2019 - £4,174,000 How much of cost of sales reduction is furlough? Administration expenses to Sept 2020 - £4,800,000 Administration expenses to Sept 2019 - £6,435,000 How much of administration expenses reduction is furlough? I understand that the sales team has been reduced. How much cost reduction is down to this?

[horndean eagle] 23/11/2020 10:27

Fwiw I think there is a huge amount more deramping here than there is ramping. Some very bitter individuals with different agendas. I am not an apologist for the company. I think they have done an appalling job. Some of it out of their control admittedly but all the same a lot is self inflicted. My guess is that they actually turn a profit for a the full year. If they can get AA to ramp up then should start to see decent profits and growth in coming years. There is nothing to suggest that isn't feasible. One thing for certain is the company is not going bust by year end as others would have you believe. Chipper - I am not sure that is valid. They had taken a lot of cost out and were making traction with AA. That has continued. Insurance devices now beginning to rise. Optimisation with Sainsburys is not a loss leader as others have suggested. Best to judge it on its results rather than what has gone on previously. A healthy pinch of salt required admittedly but they could really be about to turn the corner. Especially if AA ramp up sign ups.

[dave2608] 23/11/2020 10:20

michaelmouse23 Nov '20 - 08:21 - 5462 of 5471 "Fleet sales team performance has returned to pre Covid-19 levels, with the total value of orders in the first half 16% up on the first half of the prior year." But hang on a minute: Fleet revenue to Sept 2020 - £4,419,000 Fleet revenue to Sept 2019 - £5,435,000 Thats a drop of 19% in fleet revenue. Orders are NOT the same as revenue.

[dave2608] 23/11/2020 09:57

HE The company is pretty chipper coming into every year. Nothing new there. It was chipper on steroids in September 2018. In the December there was a £3million equity raise.

[andre] 23/11/2020 09:56

HE - I’m only negative to counteract the blatant ramping by certain individuals who post prolifically whilst the company continues to lose money. It can only result in increased debt load and/or fund raises which hurt PI’s. I know a lot about this industry and Trak have an appalling reputation partly due to unit issues and partly due to reseller service. There are positives in the results but also clear areas where the company could be ‘rolling the announcement in glitter’ shall we say. ‘Lowering costs’ could well come from taking a lot of furlough money for example. Nothing is usually what it seems - other than ‘exceptional circumstances’ and more losses. Oh, and very high directors pay (for massive underperformance). All just IMHO. When you run a PLC, your responsibility should be to all shareholders. I don’t like companies that pay very well for underperformance. I see it as corrupt. But again, that’s just MHO. You asked.

[horndean eagle] 23/11/2020 09:03

Andre - Why are you so negative on the company? There are positives in this report. AA is ordering for clubs across Europe. AA likely to have new owners who can probably spend more resource on offering out the product more widely. They have cut a lot of cost out of the business. The technical issues behind the cameras look to be resolved. Insurance side is picking up new customers. Fleet seems to be stabilising as well. I know the company were actually pretty chipper coming into this year. Covid has obviously thrown a spanner in works but there are a lot of positives. Especially if we get continued traction at AA and across insurance.

[trakm8fan] 23/11/2020 09:01

I think the bear case is simple. They might suggest they are lying. Then they will stick to the usual mantra of a. very little profit per connection b. churn is high rate so each connection has short life span and therefore very little recurring revenue c. fleet is where the money is and they're losing fleet business d. insurance business is zero margin and they're busy fools e. I think that covers their concerns but I'm waiting to see if they find any holes because I am always interested in trying to ascertain if these are new or indeed valid. I want to call out some snippets which I liked - Significantly improved gross margins due to lower hardware, labour, communications and installation costs - I hope the communications bit refers to SIM charges which I believe is their only ongoing cost per connection assuming it has been shipped out and installed and is working fine other than servers which has been mentioned. Also this - The technical challenges of the RH600 product experienced in previous years have been resolved and new generations of the product will have significant additional features - which I believe addresses one of the bears concerns that their products do not work and need large scale replacement programs. I'm not sure how much of their fleet business uses these cameras over those without but obviously if this will see additional features moving forward then that helps them differentiate over suppliers who do not supply video surely.

[andre] 23/11/2020 08:47

So far marked up on one buy of 5200 shares. I think that says it all.