Last night I was just thinking about buying into traffic master...what happens I wake up to find they soured yet again on yet another contract win with mitsubishi...enough convincing of an old time Stock market favourite i say...!

I decided it's now or never and piled in...My own opinion is Traffic Master will have soared much further by the year end, especially after the 3 recent contract wins with major Car manufacturers, there will be a number of institutions following now, even more so i expect... correct me wrong one day, (my own thoughtss only...) but i trust TFC will soar past 1.00 mark down the line, do your own research as this was a classic growth stock success story, and one I think is back on track..

Do your own research as I spent the night thinking over Traffic master, this morning I convinced myself...I think i've found the one...lol..

(still bitter after missing Gresham however...sigh....)

may a nice day...jules.

will come back to you on that, have n't looked into it...however Fibernet i consider a firm longterm hold for my portfolio, do some research into into and let me know ur thoughts casio..

jules

This share is not the flavour of the month.

Results were good. Potential seems great.

There is a small altercation with ITIS but that doesn't seem to amount to much.


What Am I missing? I thought this share would be approx 100p at the moment.


Trafficmaster to supply Smartnav to Nissan Motor
AFX
UK smallcap opening - Trafficmaster driven higher by Nissan contract news
AFX


LONDON (AFX) - Trafficmaster shares moved higher in early deals on the back of contract news.

The automotive software group said Nissan Motor has chosen Smartnav, its satellite navigation system, as an approved accessory across the majority of its model range from all the 231 dealers in the Nissan Network.

By 08.05 am Trafficmaster shares were up 3 pence at 76-3/4.

gl/ak




LONDON (AFX) - Trafficmaster PLC said Nissan Motor (GB) Ltd has chosen Smartnav, the company's advanced satellite navigation system, as an approved accessory across the majority of its model range from all the 231 dealers in the Nissan Network.

This is the sixteenth car manufacturer to choose Smartnav in the last eighteen months, Trafficmaster said.

Nissan will also be offering its customers Smartnav's two optional services; Safe Speed, a safety camera alert that warns drivers via a series of beeps when they enter a monitored zone, and RAC Trackstar Plus, a GPS based stolen vehicle tracking system.

The reason this share is not going any where is because some of us have done the maths, in there last but one statment TFC said that they were 400% up on sales selling 2106 units in the first quarter and on coarse for selling 28000 units for the year, that totals 28000 * 600 = 16+m
Taking into account that they made 500k profit last year from 36m revenue, if they did the same again for this year adding the new 16+m revenue, the results for 2004-05 should read 1m profit if they are lucky. The M/Cap is to high and a fair price for the share is 20p to 25p.

Driver

I have read your analysis of Trafficmaster with interest. However, your figures appear to focus solely on the sale of the units. The service Trafficmaster offers to drivers is not a free service but on a subscription basis. I also understand that they also receive royalties. The introduction of detecting speed traps is a 'must have' for people relying on keeping their driving licenses to make a living. Also the tracking of stolen vehicles is also a 'must have' on expensive cars nowadays. I personally can't see how they can lose with 16 car manufacturers taking their product. A consistent revenue stream is every investors dream share.

Bella

I take your point about the other stuff that Trafficmaster does and the subscriptions, this all cost money the add min, the call centres, and the production costs of the units, that is why they only made 550k profit from 36m revenue. I am not saying they are not going to make money, they are not going to make enough to support there present M/Cap they need to be selling 250000 units a year not 28000.

Driver

Thank you for responding. However, my understanding is that they have already invested in their infrastructure, hence 500k profit you refer to.
The introduction of two new services will add value, and can only be viewed as a positive move. Call centres are popular with companies due to their low cost. Their revenue stream will increase dramatically this year with the units they have sold and increased services from subscriptions and royalties. With 16 car manufacturers installing their units, low interest deals on new cars being so readily available, 250,000 units per year sold (excluding subscriptions) is easily achievable in my view.

Bella
I agree 250000 is possible may be in the year 2030 thats why there M/Cap is to high now, at about 90 times earnings instead of say 12 times were it should be.
Bella you either work for this company or you came in to late and you are trying to convince your self, I got in at 29p and out at 85p thank you very much Trafficmaster.

Driver

We are all entitled to our own opinion, and I welcome an alternative view to assist me in making future investment decisions. This site is for that purpose, discussing the advantages and disadvantages of a particular company, and exchanging news. However, getting personal towards someone because he/she has a different view from your own is not constructive or useful. We will have to agree to differ on this one.

Many sales today & big drop (9.7%)!

Any idea what's going on?

Bad news imminent or just someone dumping stock?

Fly by Night

Red

It might make sense for a large car producer like Ford to bid for TFC.

350,000 trade at 12.29pm 125,000 at 11.5am, are they buys?

Just had a stop loss triggered at 87.2 Not what I expected. Can't see any reason for it. Still holding some in ISAS

They are BROKE!!! Big meeting in the company this week. They cant sell smartnav. There are too many alternative on the market and car dealers are supplying their own. Halfords have now STOPPED stocking it !!!!! ha ha ha Call in the recivers!!!!lol...lol...ha ha ha shorts ready steady.......

Jonjo Are you taking something or other. Fascinating information. From where and out of where did the above information come. Or was this a private consultation with non non-devulged source!!!

See the news today??? Cant say you havnt got any warning. ha ha ha lol. shorts at the ready........ha ha ha lol

btw are you the only person who doesnt know tfc are broke. ha ha ha

Jojno Being as certain about the above I do hope you are going short. Might be interesting to hear the screams of success or perhaps failure.

Show us the information you are basing you predictions on!!!!!

I wouldn`t like Trafficmaster accused of insider trading, that would be very damaging. Suffice to say the coffers are empty........

jamjo would you like to name a few of the inside dealers? Could be interesting if you did and maybe show least show courage or something!!!

TODAYS INDEPENDENT

Trafficmaster in 'remarkable turnaround'


Published: 13:30 Thr 16 Sept 2004
By Douglas Bence, Companies Correspondent
Email to a friend | Printable Version

Car navigation system specialist Trafficmaster has turned the law of supply and demand upside down; instead of creating a demand and supplying it, the company arranged the supply and now has to create the demand.

It was tough persuading car manufacturers to install its Smartnav system. Until Ford agreed earlier this year, every success inspired a trumpeting press release.


With Fiat this week following BMW and Mercedes taking the total number of manufacturers to 19, Smartnav is now widely accepted with 11,000 sales in the six months to 30 June against 3,000 in the same period last year.


But now the product is available, people have to be made aware of it. The result is a pilot radio campaign in North Yorkshire with Team Saatchi ads performed by Stephen Fry.


Trafficmaster lifted sales by 14% to 17 million in the half year against 14.9 million in 2003. Last year's loss of 800,000 has been turned into profits before tax of 3.5 million.


Housebroker Teather & Greenwood said the results confirmed a 'remarkable turnaround is underway' at Trafficmaster, which it rated a 'buy'.


Smartnav is one of four group products, the next most significant of which is Teletrac, its United States fleet tracking business which now operates in 16 cities and tells businesses where their vehicles are and what they are costing to keep on the road. Unit sales of its black boxes increased 37% and revenues rose 22% to $14.2 million in the six months against $11.6 million last time.


The other Trafficmaster arms are its traffic information business, which supplies O2, MG Rover, Citroen, Orange and the RAC, and RAC Trackstar, a stolen vehicle tracking system.


Figures for the half-year reflect the early settlement at a discount of a Teletrac debt which produced additional income of 2.1 million. The company is now debt free and has a cash balance of 4.3 million.

Trafficmasters driving force since the company was formed in 1988 has been chief executive David Martell who stands down today.


He dreamed up what he called intelligent transport system and got a license from the government to commercialise data from a network of sensors on motorways and trunk roads.


The management team is now led by chief executive Stuart Berman and finance director Nigel Bond.


They are pleased with todays figures and say Trafficmaster will get stronger as the environment for motorists and commercial vehicles gets worse. They are comfortable with market forecasts of up to 8 million in profits before tax for the year. Trafficmaster shares (TFC), particularly weak yesterday, were 1.25p higher at 88.75p. They have risen from 69p at the start of the year.

Today's FINANCIAL TIMES

Trafficmaster eyes first dividend
By David Blackwell
Published: September 17 2004 03:00 | Last updated: September 17 2004 03:00

Trafficmaster is planning a capital reorganisation that might lead to the payment of the first dividend since its foundation in 1988.


The move followed a return to the black at the traffic information company last year and the announcement of operating profit of 1.2m for the first half to June 30 compared with an operating loss of 307,000 previously.

Pre-tax profit was 3.5m after an exceptional gain of 2.1m for the early redemption of $15m (8.5m) of bonds held at Teletrac, the US fleet management division.

The repayment will save 800,000 a year in interest charges. Stuart Berman, who took over yesterday as chief executive from David Martell, the company founder, said the results reflected progress in all four operating divisions - Smartnav in-car navigation, Teletrac US fleet tracking, UK traffic information collection and stolen vehicle tracking.

"We will now focus on the maximum possible market penetration," said Mr Berman. "We are on track for sustainable profitability."

Total sales rose 14 per cent to 17m, driven by Teletrac and Smartnav. Teletrac sales were 22 per cent higher and its system now covers 4,500 vehicle fleets in 16 metropolitan areas, including New York and Los Angeles.

Fiat yesterday became the 19th carmaker to offer the Smartnav navigation system in the UK. Separately, Fiat Targa agreed to take a licence on Smartnav technology for application in the Italian market.

Mr Berman said Trafficmaster would reap a royalty for every user in Italy. "This opens another market and signals our intention to sell more licences overseas."

Earnings per share were 2.65p (0.59p losses). The shares rose 1p to 89p.

FT Comment

* The development of telematics has been slow and tortuous, and - like most technology - has cost enthusiastic investors a lot of money. But Trafficmaster has battled through and now appears to be the first telematics company to make the breakthrough into sustainable profit. Other companies in the same field - such as Minorplanet, Cybit and Itis - continue to make losses. Excluding the Teletrac bonds gain, Trafficmaster profit for the full year is expected to be about 3m, rising by another 5m next year. That puts the p/e for 2005 at about 15 - tempting for a company with no debt, enjoying good growth and on the verge of paying its first dividend.