This is just a short blog after some reading and a little bit more thinking about the future of Trakm8 and telematics. Firstly, after wading through several hundred posts on the Advfn Quindell thread, I did actually read one that was useful which was simply the link below:-
http://www.telematics.com/telematics-blog/telematics-stay/
Whilst there is no mention of Trakm8 (Trakm8's clients now include Direct Line, Eon, St Gobain, the AA and Fujitsu), it does imply that telematics is at a key juncture which tallies with John Watkins' (Executive Chairman of Trakm8) outlook statement at the half-year where he states that a tipping point in mass market adoption of telematics appears to have been reached.
Bearing in mind Trakm8's Friday announcement of it's contract win with Direct Line as sole telematics supplier of self install devices, I then read Direct Line's recent trading statement which has this to say about its roll-out:-
"On 23 April 2014 the Group launched its self-install telematics proposition in the UK after a successful pilot. The Group believes this positions it as one of the leaders in developing the telematics market and enables it to offer telematics to a broader range of customers. Take-up remains strong in Direct Line new policies with one in five under 25 year olds electing for telematics."
No wonder John Watkins describes the partnership as a key milestone for Trakm8.
Even after Friday's share price rise, at 72p Trakm8 is still a minnow with a valuation of just less than £21m. With a short, medium and long term view I'm getting increasingly excited about Trakm8's prospects. Interestingly employees and others seem to share my enthusiasm and have been acquiring shares out of treasury with the last purchases at a price of 69.5p.
N.B. I don't have any interest in Quindell apart from its involvement in Telematics.
Monday, 5 May 2014
Sunday, 4 May 2014
Ignore market conditions and take the long term view
Friday brought further good news for my holding in Trakm8 with the announcement it had been appointed the sole telematics supplier of self-install devices to Direct Line Group for the recently launched Direct Line DrivePlus Plug-in device. It was confirmation of the significant hardware order Trakm8 announced on 13 January 2014.
John Watkins, Executive Chairman of Trakm8 commented:
"This is a key milestone for Trakm8, as Direct Line Group launches a step-change in telematics for UK consumers. This proposition accelerates the awareness of telematics as an effective tool to improve driving skills and reduce fuel costs. We look forward to building on this relationship further as consumers adopt the Plug-in device."
Trakm8 continues to make excellent progress, and boasts a high percentage of recurring revenues which provide the financial stability from which the company can accelerate its growth.
The recent April trading statement was also very encouraging. The share price rose by 9% on Friday and the current market cap. is around £21m:-
http://michae1mouse.blogspot.co.uk/2014/04/trading-statement-trakm8.html
Avanti Communications also released news of a contract win on Friday with Avonline Broadband. This is a multi-million dollar contract extension, and follows on from a very encouraging rate of contract wins that the company has announced in recent months.
Whilst this is a speculative holding for me, the recent spate of newsflow fills me with cautious optimism, and I continue to hold the shares.
On a separate note, those of you who regularly read my blog will recognise that I am a long term holder of shares, and have very little interest in the general direction of the main indices, I am only ever interested in individual companies and whether or not they look cheap and are worthy of consideration. Buffet's recent letter to Berkshire's shareholder's is well worth reading if you haven't already:-
http://michae1mouse.blogspot.co.uk/2014/03/buffets-letter-to-shareholders.html
Particularly this line:-
"Forming macro opinions or listening to the macro or market predictions of others is a waste of time".
Consider this: in around 2002, all seemed lost in a group called Ashtead, and I distinctly remember watching the share price fall to 1.5p, and considered having a punt. However, I didn't, but did buy some later at 15p when the shares had already 10 bagged from this low point. I later sold the shares for a modest profit. Shares in Ashtead currently stand at £8.73. A £1000 investment at 1.5p would currently be worth £582,000, and at 15p £58,200. Not a bad return over 12 years I'd suggest. Financial crisis!! Who cares if you're a reasonable stock picker with a long term view?
John Watkins, Executive Chairman of Trakm8 commented:
"This is a key milestone for Trakm8, as Direct Line Group launches a step-change in telematics for UK consumers. This proposition accelerates the awareness of telematics as an effective tool to improve driving skills and reduce fuel costs. We look forward to building on this relationship further as consumers adopt the Plug-in device."
Trakm8 continues to make excellent progress, and boasts a high percentage of recurring revenues which provide the financial stability from which the company can accelerate its growth.
The recent April trading statement was also very encouraging. The share price rose by 9% on Friday and the current market cap. is around £21m:-
http://michae1mouse.blogspot.co.uk/2014/04/trading-statement-trakm8.html
Avanti Communications also released news of a contract win on Friday with Avonline Broadband. This is a multi-million dollar contract extension, and follows on from a very encouraging rate of contract wins that the company has announced in recent months.
Whilst this is a speculative holding for me, the recent spate of newsflow fills me with cautious optimism, and I continue to hold the shares.
On a separate note, those of you who regularly read my blog will recognise that I am a long term holder of shares, and have very little interest in the general direction of the main indices, I am only ever interested in individual companies and whether or not they look cheap and are worthy of consideration. Buffet's recent letter to Berkshire's shareholder's is well worth reading if you haven't already:-
http://michae1mouse.blogspot.co.uk/2014/03/buffets-letter-to-shareholders.html
Particularly this line:-
"Forming macro opinions or listening to the macro or market predictions of others is a waste of time".
Consider this: in around 2002, all seemed lost in a group called Ashtead, and I distinctly remember watching the share price fall to 1.5p, and considered having a punt. However, I didn't, but did buy some later at 15p when the shares had already 10 bagged from this low point. I later sold the shares for a modest profit. Shares in Ashtead currently stand at £8.73. A £1000 investment at 1.5p would currently be worth £582,000, and at 15p £58,200. Not a bad return over 12 years I'd suggest. Financial crisis!! Who cares if you're a reasonable stock picker with a long term view?
BOOM.....!!! One Delta rises more than 100% on Audioboo reversal
Unexpectedly, Friday turned out to be an eventful day for three of my current holdings.
Firstly, on Thursday, One Delta released news that the acquisition through a reverse takeover of Audioboo had been agreed subject to shareholder approval with the new company to be rebranded as Audioboom. Whilst I don't hold shares in One Delta, I indirectly have a proportionate 20% stake in the company through holding shares in UBC Media. One Delta's shares returned to the market on Friday after a period of suspension, and soared over 100% in a day. It's highly speculative of course since the company is not set to make any meaningful revenues in 2014 whilst it concentrates its efforts in rapidly growing the volume of content, investing in technology, increasing the number of registered users, listens-per-user and content partners. At the current share price of 3.625p, the market cap. of the enlarged group would stand at just under £17m which clearly can't be justified on fundamentals, but compared with the multi-billion dollar valuations of other successful social networking sites, it could turn out to be grossly undervalued (Twitter is currently valued at around $22billion).
This is great news for UBC Media holders, Simon Cole, CEO of UBC Media, will become a Non-Executive Director of Audioboom, and UBC will be its largest shareholder with around 20% (including warrants), and bodes well for their own reverse takeover of 7Digital.
7digital have grown revenues 289% over the past five years, and details of the reverse takeover are expected in May (I anticipate that this could be as early as next week) at which time UBC Media shares will return from suspension. It appears that investor appetite for these types of companies remains high, and I expect 7Digital's listing to be very favourably received by the market. Of course there are no guarantees, and we shall just have to wait and see, but I do like the potential synergies that exist between 7Digital, UBC Media and Audioboom.
N.B. Previous blog on UBC Media :-
http://michae1mouse.blogspot.co.uk/2014/03/ubc-media-trakm8-and-synety.html
Firstly, on Thursday, One Delta released news that the acquisition through a reverse takeover of Audioboo had been agreed subject to shareholder approval with the new company to be rebranded as Audioboom. Whilst I don't hold shares in One Delta, I indirectly have a proportionate 20% stake in the company through holding shares in UBC Media. One Delta's shares returned to the market on Friday after a period of suspension, and soared over 100% in a day. It's highly speculative of course since the company is not set to make any meaningful revenues in 2014 whilst it concentrates its efforts in rapidly growing the volume of content, investing in technology, increasing the number of registered users, listens-per-user and content partners. At the current share price of 3.625p, the market cap. of the enlarged group would stand at just under £17m which clearly can't be justified on fundamentals, but compared with the multi-billion dollar valuations of other successful social networking sites, it could turn out to be grossly undervalued (Twitter is currently valued at around $22billion).
This is great news for UBC Media holders, Simon Cole, CEO of UBC Media, will become a Non-Executive Director of Audioboom, and UBC will be its largest shareholder with around 20% (including warrants), and bodes well for their own reverse takeover of 7Digital.
7digital have grown revenues 289% over the past five years, and details of the reverse takeover are expected in May (I anticipate that this could be as early as next week) at which time UBC Media shares will return from suspension. It appears that investor appetite for these types of companies remains high, and I expect 7Digital's listing to be very favourably received by the market. Of course there are no guarantees, and we shall just have to wait and see, but I do like the potential synergies that exist between 7Digital, UBC Media and Audioboom.
N.B. Previous blog on UBC Media :-
http://michae1mouse.blogspot.co.uk/2014/03/ubc-media-trakm8-and-synety.html
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