Trakm8 Share Discussion Threads

[dave2608] 27/11/2020 21:33

Andre

I think it's most likely that the factory workers weren't working during the first lockdown and are now as workplaces have been made "covid safe" but I'm guessing. 6jacko will be your man for that question. Oh silly me, I am 6jacko and I'm also you and I'm also blondeamon. We're all one person according to a certain lunatic.

I did notice that inventories were £342,000 down from the year end and £418,000 down from the end of H1 last year. In fact there has been a run down of inventories this last eighteen months. Not too sure how significant this is. Perhaps they want to show more cash on the balance sheet .


Inventories end of:

Sept 2016 - £2,542,000
March 2017 £3,674,000
Sept 2017 - £2,579,000
March 2018 - £2,556,000
Sept 2018 - £2,736,000
March 2019 - £2,529,000
Sept 2019 - £2,119,000
March 2020 - £2,043,000
Sept 2020 - £1,701,000

[andre] 27/11/2020 18:07

dave2608 - if all the staff from production (north of the COGS line) were furloughed, how were they making units? Unless they had thousands in stock because they knew lockdown would last this long, obviously. Or were they working? Interesting. IMHO.

[andre] 27/11/2020 18:04

MM - don't hurry on our account. See you in 6 months according to your own words. Until then, drip, drip.... See the chart.

[dave2608] 27/11/2020 11:39

Oh dear he's been picked apart again. Refuses point blank to acknowledge that furlough might have something to do with the increase in gross margin, so resorts to childish trolling......absolutely pathetic.

[michaelmouse] 27/11/2020 10:33

dave you're totally clueless, as are jacko and andre (if indeed they aren't the same person?). You don't even understand how a SAS model works (even after I'd generously explained it to you at least twice before). It's fundamental to forming an opinion on Trakm8's future prospects.

Now I'm not here to provide you with an education. I'll be back when more material news arrives, but I can't be bothered to waste time with you homebound fantasists anymore. Thank goodness the gyms are re-opening.

[dave2608] 27/11/2020 09:18

Look at the verbose language they use "vigorous actions taken over the past 24 months to introduce hardware with lower costs"

I wonder if Watkins Junior is constantly displaying vigorous actions.

[dave2608] 27/11/2020 09:06

But it's OK to bring up margins in a bull argument. Priceless.

There's no denying that gross margins have improved but let's scratch under the surface a bit shall we? The only reason gross margins improved was because COGS went down faster in percentage terms than revenue. Revenue was down 17.5%; COGS was down 23%.

If indeed COGS was down in it's entirety due to lower hardware and direct labour costs that would be a massive bull argument. But IMO it's a partial truth. How much partial, we don't know as we have no figures to go on. I suspect the vast majority of COGS reduction is because of furlough. So once again we have spin.

[michaelmouse] 27/11/2020 07:55

dave only you could bring up the question of margins in a bear argument. LOL.

At the interim stage gross margins had improved 9 percentage points to 62%, and they said this:-

"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."

At 62% gross margins are excellent, and a real bull point.

[dave2608] 26/11/2020 21:40

I'll add to my last post. I believe it's easy to be lured in by newsflow of new supplies of devices to new and existing customers. You see the newsflow of the additional new devices supplied. Things are taking off you believe and optimism infuses. But what you don't recieve newsflow about are the supplies of devices which have been knocked on the head.

[dave2608] 26/11/2020 21:26

trakm8Fan

No I did't read it in the financials as it's not there to read. I can't prove it. I can only use reasoning. Prices have been dropping because in a low barriers to entry market suppliers will enter the market in increasing numbers, eventually to saturation point. This leads to downward pressure on prices until a bottom is reached. I think most people would agree on that.

Another factor for the lower margin scenario with Trak is the fleet to insurance connection mix. Fleet has fallen by 7,000 while Insurance has risen by 10,000. I think we can agree that fleet is much more profitable than insurance, so this will have a a downward effect on combined margins for Trakm8.

As I see it there is another variable to factor in. A 10,000 increase in insurance connections doesn't necessarily mean 10,000 new connections. It could very well be 20,000 new connections with 10,000 former connections doing their business elsewhere if you get my drift. Now suppose service charges for these new connections are lower than the ones they replaced. If this is the case then that would be a another downward step for margins.

[trakm8fan] 26/11/2020 20:41

Dave - I'm just going over your post which analyses the financials. At the end you wrote - However that would make it over £2,300,000 down on the previous year. Factor in lower margins too - Can I ask about the lower margins. Did you read that in the financials or is it just a gut feeling thing?

[michaelmouse] 26/11/2020 18:35

Actually jacko give Peter a ring just to let him know he doesn't actually exist. TIA. Perhaps you can have a chat about the good old days? #looneytunes #fantasist #multi-handledweirdo

[6jacko] 26/11/2020 17:04

MM you really have lost the plot, I never said such a thing, I said I worked there and if you knew anything about Trak you would know they don’t have a sales director you total idiot!

[andre] 26/11/2020 15:32

MM - Not really.

dave2608 did an excellent job of pointing out how the statement doesn't stand up to scrutiny in his post 5538. Nothing is ever what it seems with Trak. There will be no news for weeks now and then probably a placing or fundraise to cover debt payments and working capital IMHO.

Expect your 28% to be eroded. 2 sells and no buys so far today. Boom! LMAO.

Show me where a recovery is 'gaining traction' or look at the chart and predict the direction for the next 6 months based on same old stories. Pops up on accounts with bullish statement, drifts for 6 months. Rinse and repeat.

Opps, forgot the director bonuses and pay rises for underperformance.

All IMHO.

[michaelmouse] 26/11/2020 14:02

The 28% share price yesterday was great Andre. It's nothing compared with what might happen over the next few weeks/months though.

The previous share price drift was lack of buyers regarding the uncertainty with the AA and Trakm8's second half trading. That uncertainty has pretty much been lifted this week leaving a positive outlook. Hence yesterday's stellar rise.

The recovery is gaining traction. Nobody will want to be on the sidelines when momentum is fully restored.

[andre] 26/11/2020 12:53

How's that 'boom' coming along MM? See nobody is buying today. I guess boredom is setting in again.

[michaelmouse] 26/11/2020 11:55

You should know jacko6 since you were claiming to be a Sales Director at the company? #looneytunes #nutter #multi-aliases #fantasist

[6jacko] 26/11/2020 11:43

Micheal Mouse love your positivity and spin . Which one of the Watkins are you? 🤔

[michaelmouse] 26/11/2020 10:53

Highly polished video clip which highlights their high margin Route Optimisation solutions. Iceland is featured in this video, and as we know Sainsburys has very recently signed up.

[michaelmouse] 26/11/2020 07:27

Given Monday's interims and the positive tone in the report coupled with the excellent news regarding the AA yesterday, I think anything below 50p is very good value for Trakm8 shares (50p is a market cap. of just £25m).

I expect upward momentum to continue for some time yet!

[dave2608] 25/11/2020 17:39

How much road is left?

[andre] 25/11/2020 17:31

dave2608 - it’s easy to cherry pick their numbers. Just compare everything to March which was train wreck month.

There are three kinds of lies: lies, damned lies, and statistics. Then there is TrakM8 spin. All IMHO.