Transense technologies TRT

[Whatsitworth]

They put out results on Monday. Pretty good update.
Anyone hold? I do.

I wrote this in my notes back in April..


Here’s a micro cap with potential

Transense technologies ltd

Mkt cap 13m
Share price 83p
Pe 20
Pe ttm 10.5
Pe forecast 8

Trt is made up of three businesses

itrack - a recurring/royalty revenue business they have with Bridgestone contracted out to 2030, mainly for off-road vehicles in the mining industry. It’s high margin that drops straight through to the profit line. This is the only business that is profitable at the moment and is used to fund the two loss making businesses that have greater potential.

Translogik probes - measures tyre tread depth, pressure, as well as reading both Radio Frequency Identification tags, patches and tyre pressure sensors.
Designed principally for fleet management with the major global tyre manufacturers such as Bridgestone, Goodyear, Continental, Pirelli, fleet management software companies and fleet management hardware businesses.

SAW - develops, markets and licenses patent-protected sensor systems for measuring torque, temperature and pressure, wirelessly and without the need for batteries. SAW can be used in applications that traditional sensors cannot, such as on rotating shafts or in environments where access to the sensors is difficult or potentially hazardous.
Transense has developed two distinct sensors, one measures torque and temperature and the other pressure and temperature, together with the requisite electronics to interrogate and read them.These sensors are being developed in conjunction with several international partners targeting sensor applications.

Target markets
Aerospace
Electric Motors & Drives
Industrial Machinery (including off-road vehicles & agriculture)
Performance Automotive

Allenby their broker says…
Undervalued- We believe that Transense shares remain undervalued and our NPV of future cash flows support this proposition before considering the earnings streams from the Translogik probes business and the potentially significant future contributions from SAW. Consequently, we continue to believe that forecast profits and cash flow can support a share price of 150p.

If they’re right you get an undervalued itrack business plus the probes and saw businesses throw in for free.

[WickedLester]

My main concern with TRT is that they have been listed about as long as iIve been playing the stock market, which is over 20 years and they've never really achieved much. For example AIUI the tyre probes have been available for years but have never really gained traction (pardon the pun) and the royalties from ITrack have quite a short life now.

Maybe their time has finally come, I don't know but there is little direct evidence of it yet.

On the plus side Chris Mills likes them and I respect him as a fund manager with his head screwed on.

[Whatsitworth]

My main concern with TRT is that they have been listed about as long as iIve been playing the stock market, which is over 20 years and they've never really achieved much. For example AIUI the tyre probes have been available for years but have never really gained traction (pardon the pun) and the royalties from ITrack have quite a short life now.

Maybe their time has finally come, I don't know but there is little direct evidence of it yet.

On the plus side Chris Mills likes them and I respect him as a fund manager with his head screwed on.

Dowgate who own 8 percent pretty much covers what we’ve said https://youtu.be/DXfrakc20cs?si=-XlZfmC81ipd4GKq (starts at 24:45)