Trakm8 Share Discussion Threads

[dave2608] 25/11/2020 12:26

Yes they are really cottoning on. So far 5 trades: £974.04 bought, £393.89 sold.

[michaelmouse] 25/11/2020 12:21

OT - Is IXI going to be the first bagger in double quick time?:- hTTps://michae1mouse.blogspot.com/2020/08/ Up another 5% today.

[michaelmouse] 25/11/2020 11:48

Nice tick up in the price. Investors slowly cottoning on to the significance of this morning's news. The AA's secured future, and additional funds it will receive to accelerate growth will greatly benefit Trakm8 with ramped up demand for their hardware and services.

[andre] 25/11/2020 11:25

dave2608 - stop it Dave. You are not supposed to read all the notes. You might find out what’s really going on. 😉

[dave2608] 25/11/2020 11:11

Something I noticed on the balance sheet y/e March 2020. Now me being quite obviously a dunce would start entertaining the ludicrous idea that Trak are feeling the pinch a touch and having a bit of an interest payments holiday. Silly me that can't be the case. They'd just generated £0.8 million in FCF. POST BALANCE SHEET EVENTS The Group recently entered into Amendment and Restatement Agreements with HSBC that extended the term of the facilities to 30 September 2021, deferred all scheduled capital repayments from June 2020, with these recommencing in April 2021 and amended the covenants. The Group also recently entered into an Amendment and Restatement Agreement with MEIF EM Debt LP that deferred the commencement date of capital repayments to 30 June 2021 and amended the covenants in line with the agreement with HSBC. All other terms of the facilities remained unchanged.

[andre] 25/11/2020 11:05

How does he think Trak won such ‘high margin’ business in such a crowded market? Because it isn’t ‘high margin’ maybe? The AA advertises the connected product as if it can identify what the problem is in every breakdown situation and allow for speedy fixes roadside. Unfortunately as manufacturers all put out different data from OBDII ports and only a small amount of engine management info. on any vehicle, the truth is somewhat different. Trak’s unit can only read what a vehicle offers via this method. There is no one size fits all. Hence smoke and mirrors. 1) The AA sell it as a differentiator 2) They outsource a lot of recovery work anyway. 3) They cannot diagnose all issues as their advertising suggests. 4) They will want to pay a minimum to Trak especially with new owners looking to reduce costs. This will further depress tiny margins. Kind of like insurance companies really. All IMHO.

[dave2608] 25/11/2020 10:35

Oh dear is this taking on the shape of another rampfest? We were treated to an extravaganza on results day.

[michaelmouse] 25/11/2020 10:29

Further re:AA news. With the funds that the consortium will now be pumping into the AA and the AA's commitment to their digital strategy, one obvious avenue going forward will be to more heavily align Smart Breakdown with discounted insurance for all customers (not just young drivers). Fleet is another massive area for them - AA have an array of blue-chip clients. A glance at the AA's last report will tell you just how important Trakm8's products and services are for their differentiated approach. Uncertainty is slowly unwinding - AA future secured, significantly higher revenues for Trakm8 in the second half and vaccines for COVID-19 (life slowly returning to normal). Potentially strong finish to this year, and big growth in March 2021 - March 2022. Recovery taking shape.

[dave2608] 25/11/2020 10:16

Yaaawwwwwwnnnnn. You've posted that ramp before, little boy in short trousers.

[michaelmouse] 25/11/2020 10:07

hTTps://www.trakm8.com/news/trakm8-wins-big-at-uk-fleet-champions-awards-2020/ “We are absolutely astounded by the results we have achieved. Trakm8 has proved to be an invaluable part of our operations and has saved us a lot of money. Telematics can make such a difference if you commit the resources to properly utilise it. What it can give us as a business is phenomenal. It impacts every part of the business”. Matthew Hammond, Head of Fleet, Plant and Equipment at Altrad Services"

[dave2608] 25/11/2020 09:27

It is a strategy that's difficult to fathom. Desperation maybe? However the little boy with a catapult has the answer. "What Trakm8 need to do is simple. Ramp up that installed base e.g. 300,000 devices at £3.33 per unit per month is £12m in recurring revenues, 350,000 devices is £14m in recurring revenues, 500,000 devices is £20m in rr etc. The big margins are on this installed base so if this ramps up in the next 2/3 years then Trakm8 will really prosper, if not I suspect they'll be bought out because their existing recurring revenue base is with blue-chip clients and that's very attractive." The big margins on this installed base? Everything in his mind is high margin. I'd be very surprised if insurance was producing £3.33 a month of recurring revenue per unit. Probably much less.

[andre] 25/11/2020 08:54

dave2608 - Yes. Funny that the AA are wanting to increase customer loyalty by using telematics. The insurance industry (same thing really) have been doing this and depressing pricing on telematics for years. So much so that Quartix (who really are so superior to Trak in every way) have pulled out of the insurance market as it is too low rent and busy fool business. Speak’s volumes for Trak directors strategic thinking doesn’t it. Still, they can keep selectively quoting numbers and claiming growth this way... whilst continuing to lose money and cost PI’s. But don’t worry, there will be directors bonuses and pay rises aplenty. All IMHO.

[dave2608] 25/11/2020 08:24

Be careful Andre, the little boy in short pants will start calling you names. It's his modus operandi.

[andre] 25/11/2020 08:01

Seems like bulls here are thinking that the AA will save Trak. The AA is another terribly run organisation burdened with debt. Trak’s interest is in selling a lot more low profit units to them. Seems like it’s the blind leading the blind.

[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?