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Any thoughts why the spread is so wide ? JJ
Tracsis a buy after solid first half: Tracsis reported a solid set of first-half results yesterday, and the U.K. software company is still an interesting investment prospect as it has the potential to expand across the U.S. The company has already signed passenger analysis contracts with most of the main U.K. rail operators, including Virgin, Go-Ahead, Arriva and National Express. Tracsis has also secured a five-year deal with Network Rail for its points-monitoring system - called remote condition monitoring. Tracsis reported robust results for the six months to the end of January - revenues increased 22% to £12 million and pretax profits climbed 13% to £3.2 million. Market consensus is for full year pretax profits to hit £5.5 million, giving earnings per share of 16.5p, on revenues of £23.6 million. There was strong trading elsewhere in the company, with software revenues more than doubling and the passenger analysis business delivering a 30% increase in revenues. Tracsis, which boasts a market capitalisation of £110 million, remains a high-risk prospect. The shares are highly valued, trading on 23 times the forecast earnings per share of 16.5p. However, the earnings forecast could prove conservative given the rapid growth and demand for their services. Tracsis at 392 ½p-16 ½p. Questor Says “Buy”.
JS , see we are both in VTU , also thinking of a top up here
Happy New Year lol ...I'm also eyeing up rebuying having sold (3 tranches 350-370 with a flip back in @300 for good measure) ..perhaps worth waiting for 3.10-3,20?
Hmm, what's happening here?. Is this just another of TRCS retraces?. Amazed this is back down to where it is once it had been well over 400p and pushing 450p, at which time I did feel it was rather expensive and over priced. TRCS remains on one of my watch lists due to sentimental reasons...........probably one of the worst reasons, but there you go. If this falls back down to where I sold out at in October, around the 350p I could just be tempted to re-invest, although that would mean finding funds from elsewhere, plus I always feel happier investing into strength and not weakness. Far more trades in TRCS than is normal which was always none for its inactivity when I was invested here. Good luck to all invested here and regards CM
http://www.telegraph.co.uk/finance/markets/questor/11317955/Questor-share-tips-for-2015.html Telegraph - Questor share tips for 2015 Tracsis 411p BUY The UKs creaking rail infrastructure is overcrowded and getting old but Leeds-based software company Tracsis [LON:TRCS] helps operators get the most from their networks. The company monitors passenger numbers to ensure these giant train sets run as efficiently as possible, saving money and getting us there on time. The company announced a five-year contract with a major infrastructure client last November. Revenue more than doubled to £22.4m and pre-tax profits increased by 62pc to £4.2m in the year ended July 2014. The company generates plenty of cash and the balance sheet is strong with no debt and cash of £8.9m at the end of July. Make no mistake this is a high risk investment as the company is a tiddler with a market capitalisation of £110m, and the shares are highly valued trading on 23 times the forecast earnings per share of 16.8p. However, the earnings forecast could prove conservative given the rapid growth and demand for their services. Buy.
JUST. KEEPS. GOING!!!!!!!
Continued: Breaking Down the Z Now that we know the formula, it's helpful to examine why these particular ratios are included. Let's take a look at the significance of each one: •Working Capital/Total Assets (WC/TA) This ratio is a good test for corporate distress. A firm with negative working capital is likely to experience problems meeting its short-term obligations because there simply is not enough current assets to cover those obligations. By contrast, a firm with significantly positive working capital rarely has trouble paying its bills. (For background reading, see Working Capital Works.) •Retained Earnings/Total Assets (RE/TA) This ratio measures the amount of reinvested earnings or losses, which reflects the extent of the company's leverage. Companies with low RE/TA are financing capital expenditure through borrowings rather than through retained earnings. Companies with high RE/TA suggest a history of profitability and the ability to stand up to a bad year of losses. •Earnings Before Interest and Tax/Total Assets (EBIT/TA ) This is a version of return on assets (ROA), an effective way of assessing a firm's ability to squeeze profits from its assets before factors like interest and tax are deducted. •Market Value of Equity/Total Liabilities (ME/TL) This is a ratio that shows - if a firm were to become insolvent - how much the company's market value would decline before liabilities exceed assets on the financial statements. This ratio adds a market value dimension to the model that isn't based on pure fundamentals. In other words, a durable market capitalization can be interpreted as the market's confidence in the company's solid financial position. •Sales/Total Assets (S/TA) This tells investors how well management handles competition and how efficiently the firm uses assets to generate sales. Failure to grow market share translates into a low or falling S/TA. TRCS has an Altman Z score of above 10!!!
taken from my financial analysis page: http://www.lse.co.uk/general-chat-discussion.asp?page=37&TopCode=VM9MO5EW The Altman Z - Score: from investopedia with additions: How do you know when a company is at risk of corporate collapse? To detect any signs of looming bankruptcy, investors calculate and analyze all kinds of financial ratios: working capital, profitability, debt levels and liquidity. The trouble is, each ratio is unique and tells a different story about a firm's financial health. At times they can even appear to contradict each other. Having to rely on a bunch of individual ratios, the investor may find it confusing and difficult to know when a stock is going to the wall. In a bid to resolve this conundrum, NYU Professor Edward Altman introduced the Z-score formula in the late 1960s. Rather than search for a single best ratio, Altman built a model that distills five key performance ratios into a single score. As it turns out, the Z-score gives investors a pretty good snapshot of corporate financial health. Here we look at how to calculate the Z-score and how investors can use it to help make buy and sell decisions. The Z-score Formula Here is the formula (for manufacturing firms), which is built out of the five weighted financial ratios: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E Where: A = Working Capital/Total Assets B = Retained Earnings/Total Assets C = Earnings Before Interest & Tax/Total Assets D = Market Value of Equity/Total Liabilities E = Sales/Total Assets Strictly speaking, the lower the score, the higher the odds are that a company is headed for bankruptcy. A Z-score of lower than 1.8, in particular, indicates that the company is heading for bankruptcy. Companies with scores above 3 are unlikely to enter bankruptcy. Scores in between 1.8 and 3 lie in a grey area.
Good to hear from you, CM. LFC more solid last night .. good to see Ricky Lambert performing well ... no case for Signor B coming back! GL to all on this board...
Good evening folks. Good heavens £4.00!!!!, who would have thought that just a month ago with the market in turmoil. Congrats. to all who are in here and stayed in here throughout. It's hard at times to let a share go by selling out, indeed selling is by far the hardest thing to do. It seems now that it is all start all over again with my investments, rather than being able to see something develop from not much more than an acorn to a fully grown tree. When I invested here I only had 1000 shares invested at a price of around 86p. So a 10p (£100) increase in the share price was enormous, now it is no more than 2.5%, yet the increase in £ would be as much as at 86p. The market correction spooked me so I got out of everything. Perhaps in the future if the same situation arises I may take a different course of action, providing the share was strong as TRCS has proved to be. Thanks for your mention of other shares to look at. I will make the time to look deeper. Having said that, I am not sure I want to invest more right now, having bought back into the market. I now have re-invested in HAYT and CLL and have taken a position in ITV, REDDE, BOOM (joker in the pack) and yesterday RM. These are not recommendations, nor am I trying to ramp any of them. Apart from BOOM, they seem relatively strong, but who knows what will happen with the markets. Yeap, LFC are finding the going tough without chewy Luis and DS out for the time being. Think we will just have to see the season through as best we can and hope the team comes together at both the front and the back. However, I did take a lot of pleasure the other evening when I sawon t.v the REAL MUFC (Maidstone United) beat league opposition in the FA Cup. Maidstone were my home team who I supported from being knee high to a grasshopper and have seen many times in the past. Liverpool are my team from family extraction (I'm 1/2 Scouse). Good luck all. Perhaps we could meet up on another board........it's a little painful to see how well TRCS is doing now that I am out of it.....lol. Regards CM
Wowsers!!! £4 in sight!!!
hi guys nice to hear from u both. hope u are both well despite LFCs poor form! CM - agree mate, I guess we all need to move on from time to time! as my recs for possible future companies - NWT is one to watch imho. all the best!
I'm out too, very happy with profit, wanting in lower at some point, still pondering impact of any nationalisation/closet nationalisation if Lab win in 2015. CM, wonder if James Halstead (JHD) is on your watch list? ... very high ROC, superb dividend record (in that sense a kind of "junior Spirax Sarco" although it's a flooring company, not an engineer) ... I'm a long term holder but would like to see it lower in order to top up... a chance might come as their Achilles heel is that a very high % of sales is in continental Europe. Superb Hendo goal on Saturday LOL, hopefully first of many past Joe Hart but not while on national duty... GL all...
Good luck to you Shan. As you are probably aware I have sold out of TRCS, regrettably in some ways. However I made a very decent profit of over 400% over the time I was invested, so no complaints. With the market taking a dive in October I decided to sell out of everything and exited TRCS at around 348p. TRCS was/has been the most successful share I invested in for % gain. I never had a great number of shares in total. There comes a time to move on though and I am now "fishing around" for other possibilities. Have to say the dividend with TRCS is miserly, but better than a poke in the eye with a burnt stick!. Regards and good luck CM
Well well well....Trcs recs by Midas share tips....should see some good activity hereon.
Just had a look at the results and I was aware of this company from a good colleague here Chequemate. I must say the quality of this company is high compared to most AIM. ROCE, ROE and Operating Margins all double high figures close to or around 20. Revenues, earnings and profits all increasing along with no debt and very stable cash flow. Even discluding intangibles from the balance sheet, the company has healthy positive equity. I note form Paul Scotts interview that this company has done, and will acquire in the future using it's cash reserves so highly unlikely of any placement to dilute shares. I am also interested in finding out more of this.. ""A small amount of revenue came from the American pilot for the Remote Condition Monitoring technology and this represents an exciting opportunity for the year ahead."" Well done to Tracsis and while I think this is of high value short term I shall keep Tracsis on my watch list. Well done share holders here.
Morning, yes nice results indeed, however mc is a bit toppy imv
fab results. still delivering free cash flow
Congratulations to all who stayed invested here through the awful turmoil of last week (is that all it is, last week, seems an age ago). I am amazed at just how quickly TRCS has come back, or I would have re-invested at around the 300p mark. I was elsewhere at the time and wasn't in an easy position to re-invest. Perhaps that is a lesson for us all, that if we are invested in decent companies they will largely come back. At the time it was difficult to know where the market was going and downside looked more likely than upside. Although bailing out of the market completely to preserve capital and profits made over the last 2 years rather than see them evaporate in a matter of just 2 weeks or possibly months, I have re-entered the market with a holding in CLL, which I had held previously. Good luck all and truly hope none of you got burnt with the "correction". Regards CM
Here's a shock to the system...........I've sold my holding today in TRCS. I REALLY didn't expect that to happen. Infact, if I was to have one stock left had you asked me yesterday or the day before I would have said it would have been TRCS. However, the share price has been hit badly today, and there is no guarantee with the market as it is right now that the price won't retrace back towards the 300p mark again, even without justification. Nothing wrong here apart from sentiment. I can always buy back in. Having bought initially at around 87p or so I can have no grumbles. I never had a major holding as it happens, but have made enough to want to take my profit now rather than see it drip, drip away. The last fall back to 300p unnerved me. Feel the need to go far more into cash. I have also reduced holdings elsewhere, notably GBG (almost out). Good luck all, I may be back. Oh, and come on you reds!. Regards CM
Check in at TE99 you still watching that one??
Draw for CL group stage pm today, fingers crossed, in 3rd pot so could be tough! GL all
Good evening Shan. Yes, TRCS moving well after the fall earlier this month. Same goes for a couple of my other investments which I sold out of at the time. Not sure what to think of the market generally right now. I have reduced my holdings to just 4, the fewest I have held for some considerable time. I am away in a weeks time so I need to be able to rest more easily rather than be anxious with what is happening in my absence. Balotelli, a good signing?. Well, if we were to think that we would get £59m + Mario in exchange of Chewy Louis then it looks ok. Time will tell. Hope your investments are going well, as with everyone else's on here. Regards CM
Hi guys Just touching base. Trcs still going strong I see! Balotelli!!!....great signing IMHO! Van gaal out!!!