Sunday 5 March 2017

Disappointing year for Trakm8, but still confident going forward

It's been a disappointing year for Trakm8 where they have failed to meet ambitious growth targets.

It appears to me that Trakm8's management saw a massive market opportunity and have gone for it all guns blazing.

Let's not pretend that this wasn't and isn't risky. It is.

However, following the full year profit warning, John Watkins the CEO stumped up £50,000 to buy more shares at 76p.

A small fund raising quickly followed at 65p, and Watkins plus five other Directors purchased an even more substantial £811,000 in support. Institutional holders have been quick and keen to follow in the fund raise.

The Director's have a massive amount of "skin in the game" and I hope that this year proves a blip in what has been a terrific growth story to date.

I remain confident that this will be the case.

I just looked back to when I first bought my Trakm8 shares (see blog post below):-

hTTp://michae1mouse.blogspot.co.uk/2011/09/your-m8-my-m8-trackm8.html

A couple of interesting things to note.

1) Directors had just purchased a big wedge of shares between themselves showing massive confidence. Share price went on to 30 bag from that point.

2) It shows just how far the company has come since 2011 when revenues at that point were around £4m per annum.

One or two "gob shites" trying to say "I told you so" at the moment. Perhaps they'd have done better to alert investors to the 30 bagging potential in 2011.

As mentioned above, there can be no guarantees that management's strategy works longer term, but if they get this right then I still see £10-£20 on the cards with a medium/long term outlook. If nothing else you have to admire their full on commitment to making it work, they've certainly "put their money where their mouth is" and deserve continued success.

We'll see in due course.

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