Trakm8 confirms acquisition of BOX

On Friday Trakm8 held a General Meeting and confirmed the acquisition of BOX Telematics. John Watkins, CEO of Trakm8 Holdings PLC, commented:

"We are pleased to welcome the new shareholders who have helped us to complete this transformational transaction. BOX Telematics extends our client base, strengthens our IP ownership model and adds manufacturing capabilities. We look forwarded to delivering enhanced returns for our shareholders and reinforcing our position in the Telematics market."

I like this acquisition, see previous blog:-

http://michae1mouse.blogspot.co.uk/2013/10/trakm8-acquires-box-good-deal.html

With the enlarged share capital, the combined group is valued at just over £9m. I think the current share price will prove to be far too low with a short, medium and long term view. I'm a great fan of the management here who appear to take relatively modest salaries, but stump up plenty of cash to invest in their own shares. In fact to help fund the acquisition the Directors subscribed for £750,000 worth of shares to add to their already considerable holdings. In fact the shares were purchased at a premium to the prevailing price at the time. Not the first time they have done this.

A clear indication of their confidence going forward and their commitment to increasing shareholder value.

In contrast, I noted that Globo, a big favourite on the bulletin boards has also recently made an acquisition and raised a considerable sum through a placing. If the FT weekend is accurate, the Directors have sold £710,000 of shares. Surely that can't be right?

I know nothing about Globo, and haven't looked at its accounts, but I do know it has been targeted by shorters in recent days.

If Directors really have sold a big slug of shares whilst at the same time raising money through a placing then it hardly engenders confidence, and indeed plays right into the hands of the usual suspects.

Anyway, no advice intended or given.