Transense Technologies Share Discussion Threads

[sojourno] 24/6/2016 13:28

Precious metals all rising, hopefully strengthening well. Our products are now more affordable and more meaningful.
Need a ales drive...
Or maybe a sales one.

[amt] 21/6/2016 23:05

The report quoted numbers so presumably market consensus. It's only ten days to period end so surely 2.1m is in the bag otherwise there would have been a profit warning by now.

[piggyinthemiddle] 21/6/2016 22:22

That`s the problem Sojourno,we have read all this sort of stuff before.
As soon as the investors start getting nervous this type of write up is trotted out.
I notice that even in this one they are suggesting Itrack and iprobes are going to have to be the main sources of income over the next couple of years and that`s what bothers me as we appear to have hit a brick wall on both.
Once again we are promised jam tomorrow!
What have they been doing since the last agm?
Where are the mining companies that are snapping up our "free trials"?
Have we sold any probes since last December?
Japanese car makers are still "showing interest"?.
Have any of the US car giants actually fitted any of our sensors as yet?
Are we receiving any money at all from anybody? Ok,an European company is marketing something with our stuff in but what are we earning? Couple of quid,fifty quid, more?
As I`ve said before,long term holders are stuck with this share as it just isn`t worth selling at these levels and maybe something will turn up but who in their right mind would want to invest now?

[sojourno] 21/6/2016 19:53

Moved house. .. no data/phone for last 10 days. Reno project ...still hold FWIW! Impatiently waiting for strong news this year!
Nice report drw1, haven't we read bits of it before?

[piggyinthemiddle] 18/6/2016 10:10

I would imagine the only cash burn the company has now got is the directors salaries and expenses which with the money in the bank should see them all comfortably to retirement!

[amt] 17/6/2016 20:12

If the Broker expects sales of 2.1m this year then that must exclude the sale of Emerson otherwise it would be negative in second half. So pre Emerson they made .8m first half so must be 1.3m second half. So assume GP of about one million and cash burn of 300k. So cash burn on these forecasts is getting to very low levels so if they have got the forecast correct then looks very encouraging.

[amt] 17/6/2016 19:49

Drw1 very interesting report. If that has been agreed with the company then unfortunately it got the sale proceeds to Emerson wrong. It was 2.96m not 3.5m Let's hope the forecast of 3.3 million odd next year is very conservative because they need to make it or beat it to regain positive sentiment. I don't recall the last time they met a forecast, anyone know?

[joeblogg2] 17/6/2016 12:01

Only way to get confidence back here is deals and the BOD buying more or getting shares instead of salary!!!!

[drw1] 17/6/2016 11:53

Transense Technologies PLC (LON:TRT) fits into this ‘oversold̵7; category.

Its market capitalisation is currently £5.4mln and it had around £4.6mln in cash at the time of the last results.

Stripping out the cash you come up with an enterprise value of less than £1mln.

In other words the market is saying Transense’s technology, protected by 38 patents, is worth less than £1mln.

Moreover, investors currently rate the chance of commercial success at zero.

As we will see later, the outlook is a little rosier than the share price suggests.

Reasons to be cheerful

Transense’s surface acoustic wave (SAW) technology is finally gaining some traction commercially.

The firm is working with a roster of blue-chip partners, including giants such as General Motors, GE, Bosch and BHP Billiton.

In fact, its wireless and battery-less torque sensor has been incorporated into products now being marketed by a large, unnamed European manufacturer.

Meanwhile, in selling its IntelliSAW business to American manufacturer Emerson, it raked in £3.5mln ($5mln).

The cash, along with the proceeds from a modest City fundraiser, will see Transense through to profitability.

As well as providing a balance sheet boost, the Emerson transaction delivered something a little less tangible but equally important.

It gave third-party validation of SAWsene, sensors that measure torque and temperature, or pressure and temperature.

In the automotive sector, a huge market but a slow burner, SAWsense can be deployed to measure the rotational force generated by the drivetrain of a vehicle.

The data generated might eventually help motorists and manufacturers pre-empt breakdowns, but could also aid fuel efficiency.

Transense is already working with three major car manufacturers, including GM and the super-car maker McLaren, while there is ‘continuing interest’ from Japan.

Gaining traction in the industrial sector

In the industrial sector its wireless and batteryless sensor is used in large pieces of capital equipment found, for example in very large pumping stations and could also be deployed to monitor the condition of wind turbines.

Transense technology is now embedded into industrial equipment being marketed by a large European engineering firm.

Chief executive Graham Story isn’t allowed to name the company, though he says it is a Europe-based multi-national and a competitor to GE, another of Transense’s partners.

While waiting for the automotive and industrial sectors to bloom into commercial life, Transense developed iTrack initially as a stop-gap revenue and profit generator.

Used by the mining industry, iTrack was designed to monitor the health of tyres in large dump trucks that cost US$35,000 each to replace.

But it has spawned a much wider array of data than first anticipated – information that can help with vehicle maintenance and route management.

As mentioned above, the mining application was supposed to tide the company over until the full commercial roll-out of the torque sensors in the automotive and industrial sectors.

But a downturn in the natural resources sector meant that mining firms weren’t willing to commit to the capital investment required for iTrack.

Becoming a data miner?

So, Transense has re-worked its strategy and reckons leasing the equipment to companies is the way forward.

Longer term it wants to become a pure-play data specialist, providing information that will make a real impact on the productivity of a mine, saving diggers tens of millions a year.

iTrack and the company’s Translogik tyre inspections probes business will likely be the main revenue generators in the next couple of years.

The company’s broker finnCap is predicting Transense will post sales of £2.1mln this year, rising to £3.3mln next, at which point the firm is expected to be close to break-even.

At the same time, the automotive sector finally seems to be tuning into the merits of SAWsense, while activity from industrial customers is starting crystallise into products with the Transense technology inside.

Storey says the car makers that are serious about taking SAWsense and that the next year to 18 months is likely to see some meaningful developments.

Meanwhile, interest from potential industrial customers could very quickly crystallise into a solid pipeline of new business, analysts reckon.

Room for growth

City broker finnCap reckons Transense is worth 2.7p a share, which is around two-and-a-half times the current price.

That valuation is based on some very conservative assumptions.

“Some significant customer contracts are pending and we foresee significant upside when the minerals sector starts to recover,” says finnCap number cruncher David Buxton.

“Things are becoming quite interesting,” adds CEO Storey.

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[joeblogg2] 17/6/2016 11:49

have the die hards here lost their voice, anyone been able to wake up the BOD and told to see the share price? I would do but in open plan office :((

[kenone] 17/6/2016 11:49

Someone is buying. Similar trade action to yesterday. Series of Sells and then Buys. Back up to 1p bid.
As albert suggests, someone selling or reducing holding ,but, someone else seems prepared to take advantage of the lower offer price & buy.
Another week passes with no news. Can't see it going much lower yet with cash still left . Next update will be critical - lets hops it's a good one.

[cougar99] 17/6/2016 10:28

... the Deputy Chairman picked-up GBP 14k worth last year .... let's see if any Directors pick-up some at the present 'bargain' prices .... I won't hold my breath for such an event ....

[albert_einstein] 17/6/2016 10:24

I'm afraid the Company's management are clueless in terms of promoting the virtues of the Company to potential buyers of the shares.

If you are a Company that has already serially disappointed shareholders over the years and you have practically zero newsflow then what do you expect to happen? Existing shareholders will become worried/disillusioned/bored and sell out whilst potential buyers have no incentive at all to put a toe in the water.

The concern here must be that some sort of disappointing trading update is in the offing and people have got wind of it. Although, to be fair, the lack of newsflow in recent months is hardly indicative of encouraging progress.

[dusseldorf] 17/6/2016 10:21

Looks like a distressed seller. The company is fast approaching available cash balance.

[joeblogg2] 17/6/2016 10:08

no buyers even at this price, foolishly have bought another 100k

[joeblogg2] 17/6/2016 10:03

rights at 1.5 and now look , the company need to come up with deals!!!

[joeblogg2] 17/6/2016 09:49

what is going on :(((

[joeblogg2] 17/6/2016 09:30

Looks like someone determined to sell out.

[drw1] 16/6/2016 10:45

Level of 'fear' in the market is causing a buyers strike across the board.
Historically buying at such times against the crowd has provided above average returns.
TRT has sufficient cash resources for some time yet and it is my belief that GE etc continue to work with our technology and potential rewards may be substantial.

[joeblogg2] 16/6/2016 10:27

Must be one big sale to come through :((

[dncleaver] 15/6/2016 10:24

FFS!!

:-(

(June 23rd is going to be interesting! .... Well, at least Friday 24th will be!)

[joeblogg2] 15/6/2016 09:21

very disappointing, lack of news and holders get fed up and selling :((

[vizz] 13/6/2016 10:55

Life is ever so easy and clear to predict when we are 27 years old.

[amt] 13/6/2016 09:01

At least revenue usd so Brexit even if UK economy takes a dive would be good for TRT

[cougar99] 09/6/2016 08:39

So, amt .... in this case then any thoughts as to what will be the next excuse for poor orders?