Small Cap Value Report (27 Nov 2014) - TRT, DGB, LTHM, MSI, TRK

27th Nov '14 by Paul Scott

15 comments 16047 reads

Good afternoon! I'm gradually adjusting to Las Vegas time, hence today's report being later than usual. Can't say I'm particularly enjoying myself here - endless malls full of designer clothes & other trinkets has zero interest to me. Also the casinos simply reinforce my view that any form of fixed odds betting where the house has an edge, is a mug's game. I only really like poker, as you can pit your wits against other players. Trouble is, most poker players here look so unsavoury that I'd rather play online, and can do that anywhere! Still, it's good to experience this place, even if it will be just the once.

Anyway, onto some company results.

Transense Technologies (LON:TRT)

Share price: 4.1p (down 30% today)
No. shares: 295.7m
Market Cap: £12.1m

This company has been around for ages, so it's quite a stale story. It looked to be getting somewhere with its tyre pressure monitoring technology, but checking the archive I last reported on it here on 13 Jun 2014 when there was a mild profit warning.

Profit warning - they've warned again today, with contract delays being the culprit. I'm wary of contract delays, as if a product is really good, customers tend to just buy it. Contract delays can mean the customer isn't going to buy it, but just hasn't got round to telling the vendor yet.

My opinion - I've never looked into the products or markets in any detail with this company, but one has to wonder after so many years trying to commercialise this technology, whether there's really much appetite for it?

The forecast break into profit this year & strong profit growth next year must be increasingly questionable. That said, the market cap has adjusted down to reflect that, and is now only £12.1m, which could end up looking cheap if big orders do start rolling in.

One would need to keep a close eye on the cash position here. The company said it had adequate cash in Jun 2014, but I wonder if it will need to raise more next year? The number of shares in issue has gone up every year for the last 6 years, so it seems to be a continual fund-raiser, and at some point the appetite to keep putting in more money might dry up?

A bit too speculative for me.

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Fangorn

27th Nov '14

"Can't say I'm particularly enjoying myself here - endless malls full of designer clothes & other trinkets has zero interest to me. Also the casinos simply reinforce my view that any form of fixed odds betting where the house has an edge, is a mug's game. I only really like poker, as you can pit your wits against other players. Trouble is, most poker players here look so unsavoury that I'd rather play online"

Loads to do there PP - get yourself on a chopper ride of the grand canyon, or take in one of the evening shows. Cirque de Soleil was there when I went many years ago.

Hard to not find something to do if you're at all adventurous.

http://www.sundancehelicopters.com/

Paul Scott

Hi Fangorn,

Riding choppers is not a great pastime of mine (despite all the rumours lol!!), but we are taking in a drag show later today. Think I'm still a bit jet-lagged, so my natural joie de vivre has been somewhat blunted. Also I lost $200 in roulette yesterday, so am a bit annoyed with myself for being such a mug punter.

The view from the 53rd floor of the Vdara is so spectacular, that this is the best entertainment needed - myself and my eccentric travel companion are both great aviation fans, so we love seeing planes taking off & landing, and we have a great view of the airport approach. Indeed, the flightpath has moved very close to our hotel today, so fantastic views of planes taking off & panoramic views of the mountains behind, and the whole city. We must be able to see for 20 miles, easily, in over 180 degrees from up here.

I've also been taught how to "twerk" (fuelled by apple vodka), but don't think I'll win any prizes!

Regards, Paul.

Hydrus

There is lots of great food in Vegas, ranging from Joel Robuchon's 3 michellin star restaurant to SW steakhouse and Scarpetts for excellent Italian food. The Picasso is also pretty good and it's fun looking at the paintings whilst eating, especially if you are like me and can't help thinking what would happen if you flicked your mash per potatoes up onto one of them.

'Mashed' of course, stupid auto correct

AlanJenkins2

To my mind,the news from Transense illustrates the dangers of believing companies when they indicate suggest or imply that they may either turn a profit,or at least get close to breakeven when they never have.

yes, yes, I'm not really interested.

I love being on 53rd floor of VDara, and looking at the planes!

Vegas generally seems ghastly to me, not interested.

PP.

AnonymousUser37567

28th Nov '14

I was in LV for a trade show a year ago and didn't 'get' Las Vegas. I was wondering if i was because I'm British? Mind you, I did not have team to see any shows.

jraitt

If the poker gets boring try the attractions on the Stratosphere Tower
http://www.youtube.com/watch?v=VWJATqU1WGk
http://www.youtube.com/watch?v=smX6iRFHQd0
http://www.youtube.com/watch?v=OgswFsHIkeg

Let me know which you enjoyed most however I doubt as much fun as watching QPP SP.

pep

I was in Vegas in 1986 and liked it....all that old atmospheric gangster stuff, casinos with history etc. Went back two years ago to see the new rebuilt version and like you, I thought it pretty ghastly. As expected, the wife loved the shopping malls!! I went to a gun shop where I could 'hire' a variety of weapons that I hadn't yet got round to using, and blast away with on their indoor range. Good crack. There is a very good Italian restaurant in the Tuscanny Villas Casino that does an ice cream cake that is absolutely the business. There is also a gravity-free facility where you can float about weightlessly.

OsullivanB

Do they still do the light aircraft ride down the Grand Canyon? If so, I recommend it.

MichaelFBS

If I was you spend the money you will probably lose:-) over the next few days on hiring a car/air fare and head off to San Fransisco which I am sure has more to offer than LV. Sounds like hell.

valueman

VP
A very well run family controlled company that's only problem that I can see has been a low 13% return on capital .VP used to make a higher return pre-recesssion and I have been waiting for it to improve.It relies quite heavily on bank debt for reasonable returns .However ,the return is nearly 15% now and hopefully will continue to improve as their pricing power continues to increase in their key UK divisions .That ,coupled with a lowish valuation of a PE of 13x y/e Mar 15 makes for a compelling buy .

julesone

Hi Paul

One of the strangest flights from LV airport is the plain marked JANET 737 that flies to Area 51. I picked up the schedule from the National Atomic Testing Museum which is one of the most interesting and unusual museums I have to. It's within walking distance of the strip.

http://www.nationalatomictestingmuseum.org/default.aspx

http://en.m.wikipedia.org/wiki/Janet_(airline)

Regards
Julian Shute

DarwenLad

Much better than a flight along the Grand Canyon is to hike to the bottom and stay the night at Rattle snake ranch before returning the next morning. It is much easier than it looks (especially if you stay overnight at the bottom). The colours of the rock formations are fantastic, and the sense of achievement as you sip your first beer at the Rattle snake ranch, far exceeds (temporarily at least) finding a "ten bagger" .

Dendyver

VP the headline figures do look good, however the negatives as I see them:
Current Assets 57.7 only exceed Current Liabilities 51,7 by 11%
Current Assets 57.7 only 20% of Enterprise Value 300.4
Free Cash Flow is minus 1366 out of which is paid the dividend
24786 + 4 - 24346 - 923 - 887 = (1366)
Anybody dis-agree with these figures, as valueman says VP is a compelling buy.

Small Cap Value Report (27 Nov 2014) - TRT, DGB, LTHM, MSI, TRK

Transense Technologies (LON:TRT)

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Paul Scott

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Small Cap Value Report (27 Nov 2014) - TRT, DGB, LTHM, MSI, TRK

Transense Technologies (LON:TRT)

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Paul Scott

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