Member Info for GLR1990

Was completely out yesterday
STAR holding up well, still stupidly undervalued
Funding news hopefully soon, then we can start re-investing and really motor on - although bodes well they haven't rushed anything through, and with todays news of 190bn available to boost business in the UK may hopefully see the same in other countries as they look to mitigate any global slowdown with cheap/favourable business loans
Good luck!!

Finished 5% up on one of the worst days since 2008
After starting 20% down
I mean seriously, if that doesn't tell you how undervalued we are, then nothing will

The fact that we dont need to do a placing, and can get access to favourable funding, in this market, is the best news an investor could ever hope for
Look at BIDS for example

Most of our partners are giants too (Bosch, ICL, Expeditors,Zero) and fortunately, cash rich (CropX for example who raised over 10m USD last summer)

So in that sense, I think we are very well prepared to continue our progress towards greater profitability

Think the SmartCubes have partnered with ALLIED in the USA , posted a video on LinkedIN and it says on the guys shirt 'Bayshore Moving and Storage'

https://www.bayshoreallied.com/about/

Bayshore are an Agent of ALLLIED

https://www.allied.com/

Quote: Allied Van Lines has the largest mover network in the world combined with over 85 years of experience. Whether you are relocating long distance or locally, our global network ensures that no matter where you're going

Very nice

Couldn't agree more with Patience, share price did 20-30% on funding 'confirmation' but the actual, official RNS with the key details should see a bigger rise, market is overly cautious, as well as extremely fearful in the current climate - if we can show that we are fully funded, for at least 12 months (and possibly longer (forever?) as the growth could make us sustainable) then at the lower end of the AIM market (Sub 5m MCAP) we should see considerable growth in the SP

Not too concerned about the market in terms of Sub 10m MCAP companies because we can do 50-100% on any given day with a large order ($2-3m+) - key is to be in a solid company that can get those deals over the line, we've shown we can do it (1.3m in 2019 and 1.1m in 2018) - hopefully now we can see a real monster order

Honestly believe the logistics industry will go through major changes post this corona-virus outbreak

People may not be travelling but goods need to be moved efficiently and quickly, if ports/customs/borders close or become under pressure, goods will be held up - time sensitive goods, such as medicine, or temperature controlled goods, such as good produce, could be lost which could result in trillions of $$$ in losses for the industry

What would be even worse is lack of transparency in the supply chain, lets say you are a large company exporting $100m worth of goods per annum, if you 'usually' send your good to PORT A and that port is now closed, or running slower than usual, how do you know? Do you have to wait to find out, or are you alerted in real time? What is also more important, if you have no visibility do you keep sending goods to that location, resulting in more delays for your customers, or do you act quickly and re-route existing and new shipments to another port/border/transportation method to keep things moving along

Honestly think transparency in the supply chain will absolutely BOOM post this pandemic as shippers and forwarders realise that if they had transparency in place, they could have mitigated billions of dollars in losses

Cropx is awesome, truly fantastic company in a super hot sector with very ambitious plans, I saw the presentation early 2019 and they're not targetting a few K units, serious growth plans, 2019 was all about allowing them to scale that growth however, they used to have a direct model selling hardware, now they sell the software and it is more of a HaaS model - the advantage of a HaaS model is obviously ROI for your clients, whereas in the past a client would have had to invest $600 for a CropX sensor, the ROI could be 12-24 months on investment, now they can pay a monthly fee and get the ROI from day one - of course CropX needs a lot of 'cash' to allow this model to be successful, and hence that is what they did in 2019 (with the 10m investment from large players, plus extra from ourcrowd)
I am expecting big things in 2020 for CropX

So it looks like favourable funding will be in place for the year 2020, the investment case here now becomes incredibly attractive, in fact I put out the challenge to find a better sub 10m MCAP tech stock on AIM

SaaS
Zero Motorcycles and CropX, it is not impossible to imagine both of these selling/installing more than 10K units each in 2020, CropMetrics already have around 500,000 acres, which at the 40 acre suggestion per unit by Cropx, equates to 12,500 units - Zero the same, they now have 2 models and they have been doubling sales YoY, also selling more than the competition - if we assume 20K units from both (which I believe is conservative) at just $30 per unit per annum, that would generate $720K extra SaaS revenue for the period 2020/2021 - or a 30% increase on 2019 results - from just 2 clients
SaaS is also high margin (over 80%) so this would also be like a non-dilutive funding package, every year, compounding, until the units where replaced - incredible.
We also have Lokies which only contributed around $240K in 2019, if they do hit the 2m target from russia, among other territories, then we could be looking at exceptional top line growth, assuming the product is $200 aprox, 2m USD in hardware revenue would be 10K units, again potentially adding another $350-400K SaaS per annum - taking the total to 1m+ extra for 2020/2021, anyone who has read the balance sheet would know that 3m in SaaS, plus our CURRENT hardware sales would likely push our EBITDA into the millions and make us cash generative/e.g. self sufficient tech stock - absolutely no chance you're getting any shares for sub 5m MCAP and likely would make us a prime buy out/takeover target

The above is just for 3 clients, assuming no extra clients, no extra contracts, no extra OEMS in 2020 - and ignoring all our existing clients such as the great ICL, Bosch, Contguard, WIMC, XP

Also the same can be said about the very appealing and rapidly expanding Cubemonk - check LinkedIN if you want to see the size of their warehouse and how many smartcubes they already have

Again, if funding was the issue putting investors off (which it clearly was judging by today's reaction), then a fully funded starcom, is indeed one of the most exciting sub 10m MCAP tech stocks on AIM for 2020

As always anything can happen, so please DYOR and don't take this as investment advice!

Definitely no placing if Myles has added on the open market, surely they would have asked him first, expect more to buy in when the news, whatever it may be (whether it be debt based or other) is officially closed - starcom funded without dilution, wow, have waited a long time for that day to arise :-)

Delayed buy reported, absolutely no way it is a sell and explains the lengthy time the stock has been NT today and yesterday

That's likely the biggest buy in the last 12 months / longer, not sure if anyone can check but that's one of the biggest I've seen, we don't tend to get many like that - hopefully an II with more to come, be nice to get a TR1 from a savvy investor

Strange one that, could it be an off market buy? I first wondered if it was Miton selling?

Agree Forest - we are only a £4M MCAP company, I have made the point before that to another company/competitor or partner, these contracts with Zero, CropX, ICL, Cubemonk are HUGE growth contracts, I've said before that a team such as BCDS (Bosch connected devices) could onboard Starcoms contracts and technology (already have the TDL), use their own team to manage it (no extra admin costs) and likely make a very lucrative profit - in that case we would be worth much more to Bosch than to Mr Market thank's to the growing (and predicted to accelerate) SaaS/IOT platform side of the business, the longer we stay sub 10m MCAP they'll be fending off buy-outs very soon, if not already

ICL moving more into agtech, not only that but it shows the current aggressive acquisitions in the sector, maybe we will see more from CropX once CromM have been fully aligned? Exciting space for 2020

Star last raise was 650K on the back of 2018 results, no Zero orders and No CropX orders - bosch hadn't even released the TDL although that does appear to be a very slow mover and Lokies did not exist

- Cropx now have orders, they've also acquired cropmetrics (who are no joke with over 500K acres of land - one cropX sensor covers 40 acres) so that's indirectly two ag tech companies we supply
- Zero have released two motorcycles to date, the SRF and SRS, showing the strength of our relationship for future growth, and a further recommendation for our tech that they've decided to go with us on more models
- We've released Lokies targetting 2m in 2020
- EBITDA has improved to $300K
- we have a lot of smaller contracts that add up such as Cubemonk, Contguard, WIMC, XP and ICL (ICL of course could eventually be massive)

The 650K raised, we will see what we have left, but that's almost 12 months now without dilution, compare to previous years where we raised over 1.4m USD and still had to come back for more - the company is accelerating there is no doubt about it, people want quicker growth and that's what the company are targetting with their new forecast ($8.4m in 2020)

with great clients, and at 4m MCAP IMO an II would be getting an absolute steal - honestly dont think we will struggle to find strategic partners, the issue for larger investors would be the BoD will not want to dilute their holdings down a such a small level/MCAP - half of them are being paid in shares!

Not trying to ramp and obviously there are pros and cons to every company, if we was valued at 20m I might say this and that needs to happen quickly otherwise we could see a 30-50% drop, but at 4m MCAP it's quite frankly ludicrous

a lot seem 'fearful' of financing when if anything, it could likely be our last and the start of further, significant accelerated growth - again should it be required - As mentioned bod have 20% so I just can't see them accepting anything on negative terms (you could say well they have in the past, but never with a balance sheet and client list like we have today)

As always this is just all in my opinion, please do your own research

FLX raised 4m GBP back end of 2018 at 3p (12m MCAP) with II's at no discount!? :-)

The contributions from Zero, Cropx and Lokies hopefully this year should bring in circa 4m USD of hardware revenue and 500k+ additional SaaS, to go with our current run rate of 2.1m SaaS per annum, this would make starcom a blue sky company going into 2021, and likely a buyout target due to the growth (and high margin, growing SaaS side of the business)

In terms of financing, the hope is that starcom, should they need to finance, does this on favourable terms - we can all see here the potential of 'where we could be' in 12 months time, with growth from the above and the likes of WIMC, Contguard, Cargo Signal, Bosch, ICL, Cubemonk etc. - however the next hurdle is obviously cash position, we could get very lucky and this could come from increased orders (quality clients pay up front, so we wouldn't always have to raise - look at the Ukraine order) or it could come from increased SaaS revenue (Zero pay 2 years up front) or a large CropX order for example - however more realistically speaking, with a strong balance sheet, and a very strong investment case with a low risk strategy of achieving that growth, one would hope that financing would be favourable as opposed to diluting at say 1p - sticky hands or non-dilutive, a bank loan for example or something along those lines - Should STARCOM achieve favourable financing, then we could see a serious rerate, as not only would that be a very strong confidence vote from the lendor, but would also allow investors to sit back and relax for potentially a very long time and watch the company, organically and aggressively grow

All IMO of course DYOR

Certainly, $2m target for 2020 (with a three year agreement) lets say the average price of the padlock is $200, that's another 10000 units - Assuming SaaS is slightly higher for the padlock ($3 per month) we are looking at a further $360K SaaS - that's potentially an extra 1m in SaaS to the bottom line in 2020/2021 - from just three clients

Obviously this all has to come to fruition, but at 4m MCAP the upside is massive here - when you also take into account our value to a competitor, Bosch for example, who already have the BCDS division *(and investments in both CropX and Starcom via the TDL140) they could onboard us in a couple of years, likely saving a ton of admin costs (as they already have their own team) and make a significant profit - wouldn't be su[prised to see them take a stake in the next 24 months, or a similar competitor looking for an avenue into Ag tech, Asset monitoring or Connected EV's

https://cropmetrics.com/2019/12/03/cropmetrics-and-the-climate-corporation-launch-irrigation-data-partnership/

Should be excellent for CropX

“We are pleased to be partnering with The Climate Corporation to unlock increased profitability for growers globally, while having a real impact on the sustainability of water resources.”

John Raines, Chief Commercial Officer at The Climate Corporation. “We’re always working to build and strengthen partnerships to help maximize the value of digital insights, and this partnership with CropMetrics will no doubt make it easier for growers to utilize all their data to meet production goals while conserving a precious natural resource.”

FieldView is currently on more than 60 million paid acres around the world.

Note: 60 million acres equates to around 1.5m CropX units (Suggestion is one per 40 acres) - Obviously don't expect those numbers, but even 1% would be significant

Even at $2 a unit per month, that would be an additional $360K per annum SaaS, add that to Zero and you could be looking at nearly 3/4 of a million in SaaS from just 2 clients, that would likely make Starcom cash-flow positive at the very bottom line - in 2 years that could double to 1.5m SaaS per annum and so forth

Said it before if STAR wasn't listed and IPO'd with these investment cases, it would likely be valued at least 2-3x higher than it is today

This is not advice, please do your own research

Some nice snippets from the latest RNS(s)

Cubemonk RNS
"The success of the partnership with CubeMonk to date provides the Board with the confidence that similar OEM arrangements can be achieved for a variety of third party applications, opening up further expansion opportunities for Starcom in the shipping and container tracking industry."

Also from the TU
"The Company's US based client, Cubemonk Inc. has now placed the first orders of Kylos units which are to be integrated within its unit load devices, "SmartCube". This follows last year's successful pilot. Both parties are in discussions regarding a long-term agreement for larger future orders"
Zero RNS
"We believe that this is a significant milestone for Starcom and we are proud to be part of the electrical revolution in the transport market which we expect to lead to new customer relationships in the sector in due course."
- Key word here, 'Expect'

Trading Update

Lokies

"the Company is targeting the delivery of up to $2 million worth of Lokies in 2020. The agreement is for three years and provides exclusivity to the distributor in Russia, subject to them meeting certain targets"

Outlook

"The Board considers the progress made in 2019 provides a solid start to 2020 and that it indicates a promising growth trajectory for Starcom for this year and next."

"We are delighted to see that the changes in our product offering, which we have worked so hard on over the last three years, are now coming to fruition and we believe this will result in accelerated growth in 2020 and beyond."

In Summary

Twice they not only state growth for 2020 but also for 2021/beyond, there is no requirement to mention beyond 2020 but they mention it twice
$2m for Lokies, again no need to mention a figure

'Expect' to lead to new OEM agreements, again no need to use the word expect

Very positive! Seems the market has missed the finer details as always

Also mentions ICL as a relationship to 'build' on, they increased their ISO tank fleet by 50,000 last year, be great if we became an OEM for ICL

GLA do your own research, not advice

Full specification released on the website for the all new SRS
https://www.zeromotorcycles.com/model/zero-srs

Bosch and Starcom at it again :-)

I am convinced Bosch will make an offer in the next 2 years, makes more then enough sense (considering they already have a similar business in BCDS and could very easily integrate the two)

Lokies agreement is with a Russian dealer for 3 years, targetting 2m USD of sales in 2020
This is not total sales of the product by all clients/partners/distributors, this is the sole target that one distributor / STAR have set