Member Info for dc2_

"Following couple of very strong months here at Trakm8 and increase in demand for our latest 360 fleet management platform I'm urgently looking for another super star to join my team."

https://www.linkedin.com/feed/update/urn:li:activity:6712775797318414336/

I am not saying I would read much into this, the guy is in sales but a little Monday morning pickup.

Somebody on the other board gave anecdotal evidence to suggest that Trak's inability to get clients to pay was not typical. I assume it stems from this

"A number of our Fleet customers have suffered cash flow challenges as a result of Covid-19. Trakm8 has endeavoured to take a realistic long-term view in supporting these customers."

In QTX's last TU they state

"It should be noted, however, that the Company is in regular communication with a number of customers (predominantly in the UK) for which it is providing support in the form of payment relief or deferral."

I work in this industry (for a privately held company) and my experience is that in some areas demand grew BUT if you relied on the hospitality trade then things could be difficult for you (hopefully better now).

My only disappointment was there was no mention of this:

"Major automotive customer committed to a minimum of 45,000 units over next 12 months" from the Dec 9 half year results.

Is the commitment still happening or did Covid change it? I have to assume Covid caused a compromise to occur. If not, then you have to assume that most of those units are in play yet the numbers did not rise by much.

I'm still positive though.....

All in all I think today's news, combined with their wish to answer (as best they can) shareholder questions with what appears to be down to earth responses makes me more confident than I have been for a long time.

In fairness, whilst the bears have spread a lot of half truths (we are now at cooking the books) I must admit that some of the information they said did hold true. Not the extreme stuff but things like the empty factory and hints of higher attrition.

Other than me (and Blonde) was anybody slightly annoyed with the share price increase? I say it tongue in cheek but I was looking to take any AA profit and pick up some more (to average down). AA has just dragged on and on.... When the AA things ends I guess I will have to pay more.

Best answer for me was....

Q: Does Trakm8 adopt a Loss Leader marketing/sales strategy?
A: No, Trakm8 prices all business to be profitable.

Of course the bears will suggest that a 1p profit is still in line with this strategy. We had confirmation of the lack of use of the factory for its original purpose but how it came in hand for social distancing (I did not see that coming). And, after some clarification strong hints that 1 million served devices is still a goal(which they feel roadside assistance will help with)

It is there.

https://www.trakm8.com/wp-content/uploads/2020/09/Trakm8_Holdings_AGM_QA_17092020.pdf

Another good piece of information. Even if the relationship is old it is still very good news for the reasons we stated in earlier posts this week i.e. confidence due to due diligence. The article has a number of quotes which contradict the bear post - are they saying Trakm8 are lying?

"has announced a new partnership with Trakm8" and "The recently formed partnership"

Also, I cannot find any old announcements to "re-use" so until a link is provided it is just a bad actor posting.

Repeating what you say, GLA for tomorrow.

Re 3) in your comments - obviously, none of us have an inside track but I still take comfort in knowing that, for a company that is allegedly about to go bust, a major food retailer did its due diligence and signed up. Even if Trakm8 was giving their products away (no idea but seriously doubt it) it would still not be wise for any company to define processes and workflows around something that isn't viable longer term. There are lots of other sign ups and things that all point to a positive outcome in my opinion. That said, COVID will have taken its toll on the company so I am not expecting fireworks on Thursday but I am optimistic.

I am trying to stop looking at the other forum and have done well but need to try harder. Today however, I deliver good news. Our bull turned bear has given us reason for hope. They state that we should run for the hills if no TU is issued on Thursday and even talk about waiting until November. This is a considerably better position than when they posted "Bust by end of summer is my prediction." in May.

Like you say (after removing some of the inner bracket stuff) it looks like a reasonable set of questions.

Are you suggesting that we all copy and paste this to JW? My preference would be for us to stand as one (as your Dear John suggests).

Thanks for the work

Pure speculation on my part but I wondered if some of those large sales were more about trying to take the gamble on the AA. Share price (AA) is not great and is a risky punt but it looks like there will be more action there than here in the next couple of weeks. Ok, if Trakm8 release a TU it may change the landscape (although, time is ticking for the end of days).

Of course, people can sell Trakm8 for whatever reason they wish including the anticipation of bad news.

This reminds me of another question (a very wishy washy one at that). What proactive measures are the BOD taking to ensure shareholder confidence.

This is great news. I wonder if they have taken the strategic decision to let others do the selling in favour of direct sales. Unless you are a bear they appear to have a great range of products and services so this makes sense and would allow them to concentrate on the creation of products. Yes,less profit but also less cost of sale.

I have no evidence of returned products other than what they said in their final results (that they had finished re-working some devices at huge cost). My point about reliable devices (and web portal) came from the bear posts who claim customer were deeply unhappy with device and that the insight platform was buggy. It is probably just rubbish but I thought if a leading question could be asked then it may be worth asking.

Agreed, once we firm up the questions I would be happy to submit some.

It is clear that you are the person to ask the questions......your write up was much better than mine.

As for question 1 - I am struggling to see how one loan was paid off assuming the growth loan was used as intended. I think your rewrite of it works for me. i.e. it cuts the stuff about selling stock in hand.

I thought about this and would like to ask a few questions based on the following points - it would be useful for your contributions/thoughts to correct/explain what I do not understand. Perhaps we could finalise a few questions to put to the board.

1) Debt remained constant year on year, with a new growth loan implying other debt circa £1.4m was paid off. How is this possible if the company's cash position remained broadly similar and the company did not make a profit. Is this because of the sales of stock in hand and/or creation of new devices from components in stock? If there was a glut it would certainly explain the last few years imo i.e. build stock for Iran and the 1 million device fantasy at all costs, find out you can't sell them but be heavy in debt etc.

2) Why an 8% growth loan - sounds expensive to me.

3) With a one year payment holiday, what plans do the board have to reduce debt. One assumes this will accrue additional interest charges. Are they going to just accept this or is there a plan.

4) Is the factory (the new one) sitting idle, what are the plans for it. Is 1 million still a realistic aspiration

5) How did Raza get away with buying shares prior to news.

6) Are there any issues with the reliability of the product. Rumours of poor websites and returned devices. Has this increased the attrition rate or is it unfounded.

7) What are the plans for European expansion post Brexit - will we see more EU partnerships.

8) Are deals profitable (probably can't ask this)

9) Any others such as who is going to turn the lights off at the end of the summer and will Trak pay for the therapy some ex holders need.

I'd like to ask John if he has the same problem with ex girlfriends as he does ex shareholders. But seriously, I am not sure what we could ask - the stock answer would be 'company confidential'. Like you say, their guidance would be good.

Here are some links
https://www.trakm8.com/wp-content/uploads/2020/08/2020-AGM-Covid19-Covering-Letter-Final.pdf
which also addresses one of the points on the bear board
"As this year's AGM will be a closed meeting and limited to formal business required, if any shareholder has a question they would like to pose to the Board, this should be submitted to the Chairman, John Watkinsvia email to john.watkins@trakm8.com"
and
https://www.trakm8.com/wp-content/uploads/2020/08/Notice-of-AGM-to-be-held-on-the-17-September-2020-Final.pdf

Yes, that was my first thought - hopefully it is a while labelled product like the O2 (from memory) product. I think it would be worse that Trakm8 lost them than the bull turned massive bear's view that all is lost because of another competitor in an already crowded market. Only one more month until the end of summer (one of the many doomsday deadlines that bear has stated).

Truline case study reads really well.