It would appear that Trakm8's potential bid approach for Belgravium Technologies is now dead in the water. Should investors in either company be disappointed (I hold both incidentally)? Not in my opinion. Although I have no knowledge of the initial negotiations, I strongly suspect that given talks have been terminated in less than five days, it's a case of there having being little common ground on price. Clearly, the two proposed valuations were poles apart.
Trakm8 recently acquired Box Telematics for £4.25m where Box produced revenues of £8.4 million and profit before tax of £850,000, given that Belgravium produced almost identical revenues to Box with a profit before tax of £125,000, it seems unlikely that they would wish to pay much more than that for Belgravium. At yesterday's close Belgravium was valued at about £4.9m.
As a shareholder in both companies, I am comforted that Trakm8 like acquiring good businesses at bargain basement prices, and Belgravium believe that their company is considerably undervalued.
In both cases one or more Directors have a substantial shareholding in their respective companies which ensures that their interests are aligned with the interests of their shareholder base.
Both companies continue to be a long term hold for me.
Saturday, 12 July 2014
Monday, 7 July 2014
Holding the predator and the prey - a win win scenario?
I don't have much time to post on my blog at present, but I hope to add more detail in the not too distant future on some recent announcements from companies I have invested in.
Trakm8 released their full year results this morning which look superb, and as anticipated the outlook is exciting. See below for my most recent posts:-
http://michae1mouse.blogspot.co.uk/2014/05/trakm8-telematics-direct-line-to-success.html
http://michae1mouse.blogspot.co.uk/2014/05/bull-markets-and-telematics.html
Trakm8 are looking like a very long term hold for me, despite the share price having already multi-bagged from my purchase prices when they were friendless and bobbing around in the teens.
The day got even more interesting when it emerged that they have made a tentative approach to purchase another company I hold shares in - Belgravium Technologies. See below for my most recent post:-
http://michae1mouse.blogspot.co.uk/2014/05/belgravium-technologies-and-avanti.html
A merger between these two companies looks pretty enticing given the synergies and cash generative nature of both.
This would be a first for me holding both predator and prey, and it looks exciting. I await developments with interest and will comment further when time permits.
I will also comment on Avesco's excellent interim results where the dividend has been hiked by 50%, the shares still trade below TNAV and they are on track to exceed market expectations.
I hope to add more details soon.
Trakm8 released their full year results this morning which look superb, and as anticipated the outlook is exciting. See below for my most recent posts:-
http://michae1mouse.blogspot.co.uk/2014/05/trakm8-telematics-direct-line-to-success.html
http://michae1mouse.blogspot.co.uk/2014/05/bull-markets-and-telematics.html
Trakm8 are looking like a very long term hold for me, despite the share price having already multi-bagged from my purchase prices when they were friendless and bobbing around in the teens.
The day got even more interesting when it emerged that they have made a tentative approach to purchase another company I hold shares in - Belgravium Technologies. See below for my most recent post:-
http://michae1mouse.blogspot.co.uk/2014/05/belgravium-technologies-and-avanti.html
A merger between these two companies looks pretty enticing given the synergies and cash generative nature of both.
This would be a first for me holding both predator and prey, and it looks exciting. I await developments with interest and will comment further when time permits.
I will also comment on Avesco's excellent interim results where the dividend has been hiked by 50%, the shares still trade below TNAV and they are on track to exceed market expectations.
I hope to add more details soon.
Saturday, 7 June 2014
Billion dollar Boom?
Not much news to report from my current share portfolio this week, although there was an interesting RNS from an indirect holding.
As previously reported, I hold shares in a company called UBC Media which will change it's name on Tuesday as it reverses in it's recent acquisition 7Digital. The enlarged group will hold 20% of Audioboom, a recently floated (by reverse takeover) social media site that describes itself as the audio equivalent of YouTube.
The RNS announces that CBS Radio Limited ("CBS") and Sky Sports Limited ("Sky Sports") have agreed to become major new content partners on Audioboom's social media platform.
This potentially sounds very exciting.
Rob Proctor, CEO of Audioboom, commented, "CBS and Sky Sports are two of the world's biggest broadcasters and we are delighted they are using our technology
and platform to further utilise and share their wonderful audio content. They are two of the most significant channel partners we have signed and are a great boost to the expansion of our sport and entertainment vertical audio markets.
"CBS also gives us fantastic reach and exposure in America which is a key and rapidly expanding market for us. Agreements with world class companies such as these illustrate the potential global reach of Audioboom as it continues to build momentum and become a major social media company."
It's very early days for Audioboom, and make no mistake this is a highly speculative investment in a company that will report negligible revenues in 2014, however, given the lofty valuations of successful social media sites, and the potential to be acquired by a major player (e.g. Twitter, Facebook etc.) then success could easily mean a $1bn plus valuation, and a hefty windfall for 7digital.
Whilst both 7Digital and Audioboom are highly speculative, they are also operating in an exciting and potentially very lucrative space. I don't directly hold shares in Audioboom, but I do like the fact that through 7Digital I will have a finger in both pies.
It would be fantastic if one or preferably both companies blossom, although I am mindful of the possibility that neither may prosper. It will be interesting (and hopefully lucrative) to watch developments over the medium and long term.
On a separate note, my virtual trade in Vesuvius is pretty much flat so far, although I notice that Directors are still keen buyers with a further purchase reported on Friday, and a small tick up of around 3% in the share price.
I am adding Vodafone and Morrison to my virtual trading portfolio. Vodafone is yielding over 5% and is off it's recent highs as investors "park" there special dividends elsewhere. My buying price for Vodafone is 207p. Morrison's I mentioned in my blog 31 May. Just to emphasise that these are all virtual trades, and I'm doing this just for a bit of fun. Of course I will continue to report on my actual holdings and purchases at regular intervals as usual.
Virtual portfolio Price paid Current price Price sold
Vesuvius £4.57 £4.58
Vodafone £2.07 £2.07
Morrison £1.93 £1.93
As previously reported, I hold shares in a company called UBC Media which will change it's name on Tuesday as it reverses in it's recent acquisition 7Digital. The enlarged group will hold 20% of Audioboom, a recently floated (by reverse takeover) social media site that describes itself as the audio equivalent of YouTube.
The RNS announces that CBS Radio Limited ("CBS") and Sky Sports Limited ("Sky Sports") have agreed to become major new content partners on Audioboom's social media platform.
This potentially sounds very exciting.
Rob Proctor, CEO of Audioboom, commented, "CBS and Sky Sports are two of the world's biggest broadcasters and we are delighted they are using our technology
and platform to further utilise and share their wonderful audio content. They are two of the most significant channel partners we have signed and are a great boost to the expansion of our sport and entertainment vertical audio markets. "CBS also gives us fantastic reach and exposure in America which is a key and rapidly expanding market for us. Agreements with world class companies such as these illustrate the potential global reach of Audioboom as it continues to build momentum and become a major social media company."
It's very early days for Audioboom, and make no mistake this is a highly speculative investment in a company that will report negligible revenues in 2014, however, given the lofty valuations of successful social media sites, and the potential to be acquired by a major player (e.g. Twitter, Facebook etc.) then success could easily mean a $1bn plus valuation, and a hefty windfall for 7digital.
Whilst both 7Digital and Audioboom are highly speculative, they are also operating in an exciting and potentially very lucrative space. I don't directly hold shares in Audioboom, but I do like the fact that through 7Digital I will have a finger in both pies.
It would be fantastic if one or preferably both companies blossom, although I am mindful of the possibility that neither may prosper. It will be interesting (and hopefully lucrative) to watch developments over the medium and long term.
On a separate note, my virtual trade in Vesuvius is pretty much flat so far, although I notice that Directors are still keen buyers with a further purchase reported on Friday, and a small tick up of around 3% in the share price.
I am adding Vodafone and Morrison to my virtual trading portfolio. Vodafone is yielding over 5% and is off it's recent highs as investors "park" there special dividends elsewhere. My buying price for Vodafone is 207p. Morrison's I mentioned in my blog 31 May. Just to emphasise that these are all virtual trades, and I'm doing this just for a bit of fun. Of course I will continue to report on my actual holdings and purchases at regular intervals as usual.
Virtual portfolio Price paid Current price Price sold
Vesuvius £4.57 £4.58
Vodafone £2.07 £2.07
Morrison £1.93 £1.93
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