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.

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.

Trafficmaster Drives into Profit

By Louisa Nesbitt, City Staff, PA News


Road information group Trafficmaster today said demand for more sophisticated in-car navigation systems helped it move into the black at the half year.

The group posted interim profits of 3.5 million against losses of 800,000 last year, after the number of systems it sold more than trebled.

Satellite system Smartnav helps drivers plan routes using spoken voice instructions and has recently been upgraded to help motorists navigate around toll roads and congestion charge zones.

Trafficmaster, which was formed in 1988 and employs around 330 staff, also announced today that Fiat had become the 19th UK car manufacturer to offer the system.

The Cranfield, Berkshire-based firm is now preparing to launch a smaller, less expensive system, which will be rolled out from next month.

This latest version of Smartnav will cost 90 and will be two-thirds the size of the current 120 model.

The system includes a black box, usually fitted into the boot of the car, which is connected to a monitor on the dashboard. Car makers offering the technology in the UK include Rover, Mercedes, BMW and Peugeot.

During the six months to June 30, 11,000 units were sold compared with 3,180 in the same period last year.

Trafficmaster has been updating the product and recently introduced Smartnav Touchscreen, which allows customers to enter routes without contacting its call centre.

Growth was also strong at the companys smaller US division, where the system is branded Teletrac. Sales at the arm increased by 37% on last year.

Chairman Colin Walsh said: As the business continues to develop and our products gain market acceptance, we believe we are well placed to continue our profitable growth.

The company said it expected to step up its marketing over the coming months as it continues to develop the system.

Shares rose 1.5p to 89p today.

Any idea of the next stop? It certainly is begining to look an interesting punt. Especially now that we know they are making money.

It needs to break the 100p resistance.Its only a matter of time before it does and then the next stop is 145p.On the downside it has a strong support at 80p. DOR

lets hope you are right hamlins. There deffinately is potential in this now.