paccamac
22 Aug 2016
Re: PCTS HardboyTracsis have only raised a few million quid since coming to market in 2007 and since then have had stellar cash flow and an excellent track record of re-investing profits into M&A. Globo was a wholesale fraud from top to bottom so your comparison hardly seems fair. The CEO has always been good at engaging with retail investors and speaks to Paul Scott at Stockopedia so if you have questions I'd suggest you get in touch directly.P
Muzzletoff
22 Aug 2016
Re: PCTS I was a little bit disappointed by the announcement. Maybe my expectations were too high.The problem with acquisitive companies, is that you can generally understand the turnover improvement, but its bloomin' difficult to benchmark the profit, unless each acquisitions performance is reported separately, and that rarely happens, because re-organisation often takes place, and the management quite often reposition the presentation as segmented or divisional analysis, so it is difficult to work what has progressed and what hasn't.You then have to second guess what's really happening at the bottom line with what cash is being generated.So Tracsis currently appears to be a solid business, with sensible management, good prospects, and decent cash generation. I guess until we get the full results we won't know all the detail, but the market will start at some point pricing in 2016/17, and that should lift the shareprice, as well as any upward sentiment in the market this am.
valuemanbuyer
22 Aug 2016
Re: PCTS HarboySounds like you're trying to depress the price by even mentioning comparison with Globo. Why not speak to the company so you can gain a better understanding first . From my perspective the business is clearly doing v well ,has lots of cash ,healthy free cashflow and using its skills to buy up related businesses with at least a 20% return on equity . There aren't many with such high margins and high moats around them as TRCS . Well deserved premium price imho. will be testing new highs at some pint .
Indiana investor
22 Aug 2016
Re: PCTS Note your comments on the new venture Hardboy but they are investing in someone who has already built up one of the successful ventures Tracsis have already acquired.Knowing how calculated and successful Tracsis have proved so far in achieving growth for shareholders I for one will give them the benefit of the doubt on this one.Generally though a very sound and encouraging update, though I agree margins must be watch
Hardboy
22 Aug 2016
PCTS Just skimmed through it. On the face of it, it looks very strong. "Revenues for the year were in excess of £32m (2015: £25.4m, a rise of 26%) which is comfortably ahead of market expectations, with good contributions made from all parts of the business including the acquisitions completed during the year."Adjusted EBITDA and Adjusted Profit for the year ended 31 July 2016 are expected to be in line with market expectations and also ahead of the previous year."So turnover up ahead of expectations; and very healthy growth. My slight concern is turnover is "comfortably" ahead of expectations, but EBITA is in line with market expectations. This means margins are below expectations. (Cliché time - Sales are vanity, Profit sanity.) My other concern is the continued acquisition road. I have no problem with cash rich companies using acquisitions to grow, but when they start buying, or investing in, small companies whose business description means nothing to me, I get concerned: "Nutshell specialises in application software for the rapid creation of mobile business applications (apps) across multiple platforms for large enterprise organisations within the transport, utilities, healthcare and energy sectors." What does that mean?Anyone who knows about Globo - a company supposedly offering all sorts of mobile aps that no one really understood and producing figures with impressive growth - will get worried when AIM companies start getting involved with nebulous businesses.
Indiana investor
19 Aug 2016
Re: Today's RNS Sorry I Missaddressed you Muzzletoff
Indiana investor
19 Aug 2016
Re: Today's RNS Hi HardboyI now work partly in that sector... There are some big name bidders for major events and I know people who discuss their various fortunes and failures.... Needless to say this includes the names of the contract winners on occasions.It's comforting when is its good news for us shareholders.Hope that help
Muzzletoff
19 Aug 2016
Re: Today's RNS Hi IndiannaI note you believe there have been some increase in contract wins for the Event Management business. Can I ask how you gleaned this?Regards
Hardboy
18 Aug 2016
Re: Today's RNS II: I appreciate your knowledge of the railway industry. All such input very gratefully received. "To have cracked these barriers in the USA is highly significant "I think (without checking) the news release said "North America" so it could be Canada. It is still good news, and the Canadian rail industry is pretty significant, and I am sure US & Canada have a lot of synergies.
Indiana investor
18 Aug 2016
Re: Today's RNS Agree with what you say Hardboy but speaking as an ex Railway person myself the initial barriers to entry on getting new technology accepted on a rail network are high.To have cracked these barriers in the USA is highly significant and clears a much easier path for future deals.The conditions monitoring equipment which is being sold here has global potential yet it is only one of the Tracsis company acquisitions. I'm actually equally enthusiastic about the event management company where I gather there have been a number of good contract w
Hardboy
17 Aug 2016
Re: Results out 22nd August The original RNS, which iii should publish, had the PCTS to be given on Monday.If I'm expecting a news release (e.g. finals or interims) I always go to LSE website just after 7 a.m.[link] there is nothing there I want to read I can skim through them all in under a minute.
Muzzletoff
17 Aug 2016
Results out 22nd August according to Tracsis website. The iii News section only had the stockwire version which omitted the announcement of the trading statement
Muzzletoff
17 Aug 2016
Less cynical view The other side of my cynical view, is that the Company felt that the RNS on the win would be drowned out by the results, and that they get a double punch PR win by announcing a good and a promising contract win.
Muzzletoff
17 Aug 2016
Re: Today's RNS Hi HardboyYes, the spread is probably liquidity related. Its giving the market maker a decent opportunity to profit in a thin market.Guess Tracsis is still despite its market cap in the tiddler category for share trading
Hardboy
17 Aug 2016
Re: Today's RNS Muzzle: "he 25p spread on these shares is pretty ridiculous!"I think it's probably indicative of the illiquidity of the shares; which may be an indication that holders do not want to sell, which is probably a good thing. Also I'm not getting too carried away with this contract award. It may be the start of big things in the US & Canada; but at the moment it's only worth about 1% of the company's turnover, so it, in isolation, is not going to be transformative.
