Transense Technologies Share Discussion Threads

[gary38] 22/9/2016 13:10

I brought at 8.4p can you truly see this going to £4 /£5 or see it likely to go to 50p after 50:1 change.

[drw1] 22/9/2016 12:11

Interesting presentation last night.Good to see some of the old faces are still around.
Future looks brighter with prospects more diversified and solidly based than at any time in the past.
1.More convinced than ever that our IP has a value considerably above the markets current judgement and that more importantly there is a realistic chance of unlocking it faster especially given GE and Emmerson precedent.
2.Itrack 2 is obviously a well thought out product and should prove very successful hopefully helped by an improving climate in the commodities market.
3.Probes look a solid earner and appparent potential in the passenger car market.
4. Cash flow break even now looks a real possibility with profitability not far behind.
Excited for this year.

[albert_einstein] 22/9/2016 11:39

Lord G is a little hysterical in his posting but he does raise some good points.

If management win contracts and make viable progress then the share price will look after itself. Just look at the recent rise.

The shares are illiquid but that's a consequence of mismanagement mixed with a dollop of bad luck. As some have pointed out it is much easier to multibag from a penny level than it is from a £.

[gary38] 22/9/2016 10:40

Totalling agree Lord Gary

[lfc4ever] 22/9/2016 10:35

The usual balanced view.

[puffintickler] 22/9/2016 08:52

I have had two recent experiences of share consolidation.


Pure Wafer PUR
1 nov 2013: 1 for 10 gave a price of 83p. The business has now been sold giving a total return of about 188p to shareholders.

Galliford Try GFRD
1 may 2009: 1 for 5 gave price of 278. They are today 1315.


These turned out to be my two biggest profit shares in 20 years of serious investing.


That does not mean I think share consolidations are a good thing for the share price but they certainly did no harm here! The GFRD one turned out to be a waste of time though (I thought so at the time in fact) because the increase in value of the business now means they should now do a share split.


One should always be suspicious of the motives behind such a move. I don't see any problems here though.

[gnnmartin] 22/9/2016 08:20

Some discussion of the consolidation at the meeting, but not of the ratio. I agree that you have to trust the board, and anyhow I see this as having very little significance. The board think there are a number of institutions and wealthy individuals who will just not touch penny shares, so a share price above 50p could help pull in more investors. Consolidation is likely to reduce the spread too, which will help encourage buyers.

One strong critic at the meeting said that it would be harder to get the shares to double from 100p than from 2p. To the extent that this is true, it reflects the fact that penny shares are more volatile. It is also easier to get the shares to halve at 2p than at 100p.

Overall, I don't much care one way or the other. In the medium term, the company's earnings are going to dictate the share price.

[bad gateway] 22/9/2016 08:20

Thanks diesel thats what I thought but wanted views from those that know management better than I.

[amt] 22/9/2016 08:09

Sounds like he expects profitabilty next year. Value of IP id intetesting. Recent licensing deals shows it hax genuine value. Could be ten or twenty times the 5.5m as what has been sold is only a small slither of what they have.

[timbo003] 22/9/2016 07:58

New CEO interview on Directors talk

[dieseltaylor] 22/9/2016 07:56

BG - Absolutely.

As to 5 to 1 or 50 to 1 I cannot say as to which would be better. Perhaps the logic can be asked , or was asked yesterday, and we will get a posting on it.

[bad gateway] 22/9/2016 07:46

I liked the idea of consolidation here seemed like the share was growing up but would say that they could do with following up on the potential of their sensor tech with contract news round the same time. That'd help support the share price whilst they do so.
Have noted their strong cash position and prediction of having enough funds to reach breakeven..

"At 30 June 2016 the group had net cash balances of GBP3.65m (2015: GBP0.47m). A further US$0.50m (or approximately GBP0.38m) was received in licensing revenue in August 2016.

Whilst it is anticipated that the Company will continue to consume cash to finance on-going activities in the short term, the directors consider that there are sufficient cash resources available to reach a break-even level of revenues, and accordingly are satisfied that the Company can continue trading as a going concern for the foreseeable future.

Would investors agree this is likely to be the case?

[piggyinthemiddle] 22/9/2016 07:36

I will be voting against the consolidation fwiw.
Much too drastic,a 5 to 1 ratio would have been much better bringing the number of shares down to circa 100 mill,present share price to about 10p leaving plenty of headroom to increase.
Cannot really follow the reasoning for a 50 to 1 split.

[dieseltaylor] 22/9/2016 07:01

Glavey,
Firstly I have to accept yuor proposition that the price will go down and that I remain unconvinced on.
Secondly, I have always believed that what is good for the company is not necessarily good for individual shareholders.

My gut feeling is that this is probably a good idea so will be voting for consolidation.

I also take a view that generally speaking Boards need to be trusted. If you cannot trust the Board either get rid of them, or sell out when convenient. Which I did successfully on AFC who at the time had an executive set with interesting track records.

[timbo003] 22/9/2016 00:17

I only hold EIS shares acquired in the last placing and I'm mildly positive about the consolidation.

I certainly do not believe that the share price is likely to fall as a result of the consolidation, it is just as likely to rise as it is to fall.

Irrespective of whether I think the share price is going to rise or fall, I am unable to sell and buy back (or buy more and then sell) during the three year holding period as the "first in first out" rule applies for EIS qualifying shares. The only exception would be if I held additional TRT shares in a wrapper such as a SIPP.

[glavey] 21/9/2016 23:49

dt,
It's simple. Shareholders who have bought in the market can sell down now and buy back later at a lower price post consolidation. Holders of 'EIS shares' may not have that flexibility without the possibility of loosing EIS reliefs.

[a0148009] 21/9/2016 23:41

Glavey - you make some very good points and psychologically 50 share at 2p are more comfortable to hold than 1 at 100p.
AO

[dieseltaylor] 21/9/2016 22:34

Could you explain the EIS prejudicail comment please

[glavey] 21/9/2016 22:07

In TRT's case the proposal of a 50:1 share consolidation will only result in a collapse in the share price whilst the outlook continues to be 'jam tomorrow' until such time (if ever) that there is any 'jam today'. This is invariably the case with small caps where the share price has fallen consistantly over many years.

The fact that TRT have felt the need to 'glam this up' by dangling a carrot, viz. "enabling the payment of dividends from income or return of capital" is a clear indication of the issue and that they realise it. It does not take a consolidation to pay dividends or return capital. Consolidations only act as a cover up of past poor performance to avoid 'penny share' syndrome and are more often used to enable the raising of further capital. (Is that a message TRT wish to send out at this moment? Is this connected with the investor event held today?)

If the outlook for TRT is getting better, then this consolidation is unnecessary. It does not prevent the other parts of the 'tidying up exercise' should be removed from the agenda.

It is the reason behind the share price dropped today. It's always a 'sell' flag and significantly prejudicial to those holding EIS shares.

The argument that it will 'reduce the spread' is a fallacy. Intermediaries will still need to earn their %age and the 'risk' doesn't alter. It's no more tempting to buy (in fact psychologically less so) but it can make it appear more tempting to sell. One doesn't need to argue this, one just needs to look at what has happened in past similar cases (of which there are many - check out TRP as a fairly recent example.)

It's no good waiting to vote at the AGM as it will be a packaged proposal including the 'carrot'. Shareholders would do well to make it clear to the board that this 50:1 consolidation should be dropped immediately. Those that don't will find the consolidated share price waning in short order.

[arthur_lame_stocks] 21/9/2016 21:39

I went to the presentation. Didn't learn much new but one thing I did learn was that if sales are around £2.5m this year they expect to be cash flow neutral which I took as a big positive.

They seem fairly bullish but then I guess they wouldn't have an investor meeting if they weren't.

Got to handle an I Track 2 and had a few glasses of wine.

Not much else to add really.

Arthur

[amt] 21/9/2016 20:48

Did anyone go to the presentation ?

[dieseltaylor] 21/9/2016 20:23

Certainly, being a shareholder since 2000, it has been a rough ride. It must be said that the City and Mr Perry sold us a pup but fortunately the shareholders gathered together and got rid of the Board and re-funded the company.

Patents. Yep it sure has a few. And fortunately they have been refined on the way to become improved and incidentally extending the core time span. I know the new Board had a cull as keeping them all paid up costs.

I think the ice is well and truly broken now. I think iTrackII is probably built to an industry wish list so should be even more popular than it has been and with a track record behind it. Extending to the US and Brazil should be very much easier given the record elsewhere.

Translogik in its own right is a very well-positioned little baby. For companies that use a range of tyres and do not wish to be beholden to Michelin or Bridgestone this makes a good choice.

The iProbe seems,with 43 countries sold to,on its way to being a bit of a standard.

The SAW side is finally looking to be where it could have been 2-3 years ago when all companies pulled in their horns in 2008. It really did not help innovative techs selling into a conservative and cautious market. I am quite excited and if I were a wag I would be suggesting a 50p target within a year. More straight-faced I actually think it could be quite a bit more post-consolidation and some news.

[a0148009] 21/9/2016 19:27

dieseltaylor - thanks for all that very helpful.

I am sure you know TRT was floated begging January 2000 close to the height of the DotCom boom somewhere in the region of 75p and hit 750+ crashing over the years to the current level.I read somewhere that the company had a large number of registered patents relative to size, do you have any information on these if true. There are many small companies that have great prospective technology/ideas but find it difficult to break through into established OEM's who begin to show interest when competitors are sniffing around.

It does look as if they are now breaking the ice and the future looks rosier. I have been involved with many private companies with the same problem, one in particular a software developer took 10 years to make a breakthrough with several rounds of finance on the way to stay alive.
I am not too keen on consolidation at this stage it is often reported that institutions do not like penny stocks but there are plenty of smaller company collective funds that are not shy of them.
AO