justfactual
07 Nov 2015
Let's Remind Ourselves There is a lot of nonsense being written by some commentators. Take a look at the below from the March 2015 results call. Oozi Cats describes the business and outlook. One of the key points to note is the long lead time into these big project wins and the reason R&D is treated as it is in the financials. Corporate governance is extremely high at Telit. Any comparisons with other less savoury stocks are way way off the mark. This is a proper business.'In this space, we are the leaders worldwide with about 31% market share and together with our two main competitors, we represent about 85% of the total market. The fundamentals of our acquisition create a very long go-to-market integral. It can take the lead as long as two years to develop a new family of products. From that point, it takes an additional two to four years depending on the vertical for our customers to design in certified with the mobile network operator and other regulatory bodies and a ramp manufacturing lines including the test line, which needs to test those newly designed products live on the network. This long process creates significant customer loyalty and very high barrier of entry.In Telit’s 15 years history we have built a massive sales and marketing footprint. We have 35 sales offices around the world and 60 exclusive distributors, who serve 5,000 paying customers, which already completed on average three years of go-to-market and some other 1,000 in the deign-in process. Our top ten customers represent only 40% of our revenues and are engaged in different verticals and geographics. To ensure the ability to deliver innovation in products and services, we have build up our R&D with eight centers and four continents staffed with over 500 engineers and support specialists.So what do we think the future holds? Telit expects to ship over a 100 million models in the next five-years and a total of 1 billion devices in the next 15 years. This is the huge real estate and therefore we have started in 2011 to build Telit platform-as-a-service in order to facilitate our customers with one stop one shop concept, and develop a stream of recurrent revenues maximizing our market position and building additional shareholder value. Slowly but surely, this early stage start-up coupled by the Chicago and Boca Raton based CrossBridge and ILS Technology acquisitions become a reality with a 130 dedicated employees and $20 million in revenue, up 104% from 2013.Each of those billion Telit modules will incorporate efficiency driving software agents which work and sync with our service platform for device management and application enablement. Leveraging the deviceWISE technology from our ILS acquisition, enterprise customers are able to quickly connect their remote EDGE devices to their SAP, Oracle, IBM corporate information systems so quickly and simply that we call it click-to-cloud. On the connectivity side, we continue leveraging first-mover advantage from strong partnerships forged early on with global operators like Telefónica, AT&T, Verizon, Tele2, Sprint, Rogers and a growing number of others. (Edit. Now also Swisscom)The value-added services we offer mainly around the mobile connectivity diagnostics also top into special software agents and APIs in our modules to enable creation of services that our customers can use to increase profitability and market differentiation. About a year ago, we concluded the acquisition of ATOP business from NXP Semiconductors in Europe as a cornerstone for the newly formed Telit Automotive division having more expertise and security and cyber security. Today with 120 employees in Telit Automotive, we concluded that the integration and aligned the offering into the drive toward the connected car era.'Read more: [link]
acsatix
07 Nov 2015
ceo owns 20% this should put to bed thos spreading fear he may be a fraudster... at least he has quite some skin in the game to avoid the company goes bust one would think....so cheer up...things are looking good.
acsatix
06 Nov 2015
Re: Read Paul Scott [link] tells that if a company assumes its R&D efforts are linked to a project that is expected to deliver revenues largely in excess of the R&D expenditure, a company can capitalize r&D..so per se it is a statement of suipport that their R&D investments are due to generate profits.I agree it is not prudent but if they generate free cash of 20 M and they book 12 m of that intangible asset sounds ok. anyhow I guess that to me what matters is the net debt position. if a company pays taxes and generates positive cash flow, who cares how they book R&D? if of course they issued debt to pay taxes and were cash negative I guess it would be kind of bad... seem not the case. Anyhow I guess that the taxman will want their policy to be consistent and that they writeoff intangibles according to some documented logic...If it will ever happen...
LuxInvest
06 Nov 2015
Still this price action stinks, but I think it has to do with some brokers moving around big blocks......what is better than selling a big block to a major customer at prices
LuxInvest
06 Nov 2015
the facts Paul mentioned in his article are a well known practice, although I agree with his calculations on real profit by looking at cash flows. However, this did not matter to investors in the run up to 350 in the last couple of years. Furthermore, the Globo fiasco is totally unrelated in my humble opinion. The board has some heavyweights and the CEO is a major holder, so I would be highly surprised if we see the same accounting malpractices here!
Ctesippus
06 Nov 2015
Re: Read Paul Scott 'Might have' if he hadn't posted AFTER the stock had been sold down.
punter norm
06 Nov 2015
Read Paul Scott Paul Scott's Report on Stockopedia today might well explain today's drop and with the market edgy after the Globo fiasco anything could happen.
zulu principle2
06 Nov 2015
Re: increased my holding again Im quite happy opened a spread bet long for £15 per point at £2.27 and will close a £2.65.
LuxInvest
06 Nov 2015
Unfortunately there is no contact number on the Telit website, so I have send an email on whether they have a clue what is going on. This stinks, as the Swisscom deal did not mention any financial numbers so that should not be the reason for the share to get hammered! Anybody here knows how to correctly check current major shareholdings? I am not familiar with obliged notifications in the UK, but would assume there is a register for major shareholdings?
imperator2008
06 Nov 2015
Re: increased my holding again Currently down 16% despite more and more contract wins. What on earth is going on here? Closing in on 2015 lows at this rate. TCM never used to be this volatile.
LuxInvest
06 Nov 2015
anybody a clue what is going on? why -15%?
zulu principle2
02 Nov 2015
increased my holding again TELIT COMMSThe recent profit warning has so far proven to be a great buying opportunity.Another USD220m supply contract win. I increased my holding by 1900 Shares at £2.62 totalling £5k. Reduced my holding in Cineworld
zulu principle2
28 Oct 2015
topped up TELIT COMMS dropped another 11% after last weeks profit warning. Bought 2,128 more shares at £2.34 totalling £5,000. . Based on a price of £2.34 2015 EPS Forecast 13.70p EPS Growth 93.0% PER 17.1 PEG 0.18 2016 EPS Forecast 18.20p EPS Growth 32.8% PER 12.9 PEG 0.39 . With the new broker forecasts the valuation still looks good so happy to have topped up. I feel the money invested here will increase faster than holding on to Amino Tech.
Courtier1
28 Oct 2015
Re: Drop I am going to guess at fallout from the Globo debacle. Greek/Israeli software type companies seem to have been smacked by association, with investors very short on confidence that the numbers all stack up. It's not that people think there is a problem with any company in particular, they just don't want to take the chance and thus sell. It might be irrational to assume everyone is falsifying just because one company has admitted to it but there you are, a lesson in the power of confidence on share prices............Look at InternetQ - they also got savaged from 220p by about 60p but have risen 10% today on the back of mgmt reassuring that all on track.I guess until people know the extent of the problems at Globo or how long they have been falsifying data (and how they got away with it) the uncertainty will act as a drag on others.
imperator2008
28 Oct 2015
Re: Drop Now down almost 40% from its peak for very little reason. I'm taking advantage of the drop in price and buying. The company will have to produce an RNS soon stating that they don't know of any reason for the drop as otherwise it smacks of insider selling. I think for many retail investors the panic has already set in which is probably adding to the falls. The company can't be quiet for much longer in my opinion. Hopefully we'll see a bounce and a steadying of the ship then.
