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Certainly good news re cash, orders and profitability. Maybe get a bit of an uplift in SP in coming months. I live in hope!
That reads extremely well. Net cash must now be well over £1m (against a £3.9m m/cap), and the revamped business is profitable and outperforming against expectations, with a "strong" H1:
https://uk.advfn.com/stock-market/london/touchstar-TST/share-news/Touchstar-PLC-AGM-Statement/82752243
Is there anyway to verify what was said, I can find no links/documentation about this on their website or the advisors!
all business are back to normal. no need for essential service support going forward. That was once a lifetime oppur, I remember both directors failed to give a reliable evidence to support what new business or contracts during CV19.
cash front will stop or atleast slow down during these hard times from other business because no body has the luxury anymore, there is no business.
we will wait to see 900k forward book. i didnt get that confidence from Ian. Ian remained cautious throughout the whole call.
I would wait to see next quarter results. else go back to 20p like many are struggling.
The AGM update will be next Tuesday (30th June). Hopefully we'll get a brief update as per last year, confirming the continued profitability outlined recently.
The price has just bounced back up 1.5p after only £3.5k of buys.
There is no doubt this is undervalued and they may even turn a profit this year, even in the current circumstances. The next trading update will clarify the position hopefuly. The trading volumes and the spread is the concern I have regarding the SP, as suspect it chases away potential PI's. Maybe in the near future they will determine what their dividend policy will be going forward and that may spark some interest. We will need to be patient but at this market valuation I would not be surprised to see a offer on table from someone in near future, even at a pound a share it would be a steal. GLA and be patient as ever!
The price has just risen by 2p on the back of less than £2k of buys.....evidently no stock around.
A really interesting interview with the Logistics division's Sales Director - particularly the AI aspects, which could really grab investors' attention once they latch on to the Vendor Managed Inventory product which is "about to launch":
Https://www.touchstar.co.uk/blog/thefutureofbulklogistics
Extracts:
“Touchstar’s logistics solutions are never ‘finished’, we’re always looking for ways to refine things and improve operational efficiency for our clients. On the fuel side, we’re just about to launch VMI – Vendor Managed Inventory. This will enable our fuel clients to keep their customers’ stocks topped up to the perfect level; between min and max stock so that they won’t run out or hold too much product. We’ve developed an artificially intelligent (AI) algorithm that reads a fuel tank’s gauges every hour, building a picture of sales of a particular product, say super-unleaded, over a 24-hour period, a weekly period, a monthly period and so on.
The VMI algorithm works out average sales from each tank over time, and then triggers an automatic replenishment order when their customer’s super-unleaded stock reaches a set min level, say three days’ worth. What’s more, the system takes into account when the next super-unleaded drop will be made - it could be two days away, for example - what the levels of each tank will be at that time, and the best way to balance the stock across the customer’s super-unleaded tanks for the most efficient delivery. It’s a really exciting new capability for Touchstar, and one that should allow our fuel logistics customers to make and pass on real time and cost savings.
VMI works conversely too, so for waste management companies who need to get rid of product, rather than top it up.”
"Eventually, with AI behind it, our software will be able to monitor real-time shift progress and automatically move jobs around between drivers if one is experiencing problems or delays, and another is working through drops quicker than expected, and send them both updated digital manifests. It’s still a way off, but I think one day we’ll see AI transform every part of the distribution chain, from the point of drivers accepting their daily workload, to monitoring journeys, deliveries, time estimations, and automatically updating customers of a driver’s ETA. Whatever happens, Touchstar will continue to provide market-leading bulk logistics solutions that streamline operations and boost efficiency for our clients.”
Touchstar logistics optimisation systems have been developed to excel in the complex and demanding fuel market. We’ve applied everything we’ve learned about the oil and gas tanker sector on the ground and in the field, making our management solutions a formidable digital infrastructure for any bulk logistics supplier."
Rivaldo thanks for the update. It all sounds positive.
I was on a Zoom call with TST yesterday, along with just a few other investors plus the Chairman and CEO.
It went very well and was as positive as one could expect in the current circumstances.
In particular (from memory, so any corrections welcomed!):
- May was again profitable as well as January-April per the latest figures
- £5.6m of revenues have already been banked for this year, being (1) £200k per month of recurring revenues, i.e £2.4m, (2) £2.3m of revenues already booked to 30/4, and (3) £900k in the pipeline
- TST get 30%-40% of cash upfront, which is one of the reasons why their cash flow is so healthy
- they're also due to receive a substantial R&D tax refund in the next few weeks
- the business was really motoring prior to the pandemic, with order books up hugely as we know but interrupted by COVID-19. With a dominant position in certain sectors, whilst business will be slower for a little while they're optimistic that prior levels of demand will return
- 70% of revenues derive from "essential services" as defined by the Government
Good to see £5k of buys cause another tick up today, with buying at around the full offer price.
I would agree, the company is undervalued at present. They have turned things around, cash generative and profitable. Current markets are up in the air due to COVID 19, but sooner or later this will get a re-rate and will edge closer to the 100p mark. As the saying goes, wouldnt want to be out when it moves, small market cap, very little trade, it will not take much to really make it move. Wish I had some surplus cash to buy more.
There's almost no stock around - the MMs will have to work hard to find it. Eventually they'll have to raise the price again to meet demand.
Whatsapp - what's that?!! Don't use it, or Twitter - life's too short and the sun's out.
no buyers though
Appreciate the calm head. can you respond to my whatsapp then :)
TST have been profitable for all four months of 2020. And they're approaching £1m net cash in the business. Not bad for a £4m m/cap (yes, the share price has risen nicely today!).
Given the company turnaround, the sale of the lossmaking division last year, and the costs taken out of the business since then, the outlook is the rosiest it's been here for some time - see my prior post.
4mil mcap buddy.
How are they making losses then. Barclays doesn’t want to help. Business isn’t worthy enough?
TST has a mere £3m m/cap. Yet:
(1) it has approaching £1m net cash - a third of the m/cap
(2) it was profitable in Q1'20 and in April just gone - even despite the pandemic!
(3) TST have high recurring licence income
(4) it's reduced costs considerably over the last year
(5) the order book has increased over 300% year on year
(6) over 70% of revenues derive from "essential services" as defined by the Government, i.e the NHS, care homes, food factories etc
Enough said. Not bad for a £3m m/cap.
Rivaldo you need to come with better justification than number of shares available. The CEO states "How this ultimately plays out is candidly impossible to predict. We are working tirelessly to navigate a path through the C-19 crisis."
given the history of this company, this sounds bad!!!! No positivity to look forward and i wouldnt be surprised the losses continue to mount further.
Moving up fast now - there are a maximum of just 8k shares available to buy online at 45p at present.
Agree lots of positives, cash , order book and margin. Hopefully the turnaround complete. All looks good and hopefully the SP rises as the current valuation is way to low!
hahaha. this is a joke.
this is like the worst share.
no buyers and no positive outlook.
aviod liek plague.
That's aan excellent statement today.
Apart from the surprisingly good current trading, with a profitable Q1 and April being profitable too, the cash pile should now be approaching £1m given that profitability - a third of the £3m m/cap.
And that £1m should improve further assuming the CBILS application is approved.
70% of revenues are "essential services", including the NHS, care homes, food factories etc.
TST are in a very good position to come through this crisis in a strong position, and may be able to take advantage as the economy recovers, especially if competitors are weakened.
You can't even buy 1k shares online - any demand and the price should move very nicely.
They need to get a move on with these results, people losing confidence and the share price diving...
Stef not sure I would take the same pessimistic view, plenty of companies will survive the forthcoming recession and some will benefit. TST have worked hard in recent years to refocus the business and we will see when results produced in full the turnaround. Covid will undoubtedly impact but they have a strong order book which will hopefully see them over the spring/ summer but it will impact getting new contracts, by how much we will see. TST have many customers who are in essential services so income from these should be ok. Anyway you maybe correct however for the present I remain positive TST will survive and prosper
GLA