Software Radio Technology's products include tracking devices for use at sea and on rivers - an area being very strongly driven by new safety and security legislation worldwide. Devices for boats, ships, equipment, cargo items, and individuals. They are a world leader in this rapidly expanding field. See marine division website

Click the SRT ticker above for charts and latest news.



"AIS facilitates a multitude of marine applications, from coastal security to port management, and from search-and-rescue to tracking of competitors in a yacht race. AIS is of huge benefit for vessels, from the largest ocean going tankers to the smallest of leisure craft.

There are 27 million vessels worldwide, 1.6 million kilometres of coastline, and 360 million square kilometres of ocean, all of which need to be monitored and managed for safety and security. AIS offers a solution to this need and following the 2002 IMO SOLAS mandate has become a key element of many national policies. SRT Marine Technology provides a complete range of AIS technology solutions and products targeting all AIS applications." (from the company website)


and from a July 2010 edition of Investors Chronicle:

".......Legislation is now in place for AIS (automatic identification systems) to be fitted on inland waterways in the European Union for up to 25,000 vessels in Turkey and up to 300,000 vessels in India following the water-borne Mumbai terrorist attacks. The host of other mandates are in the pipeline, including China, South Korea, Japan and the US. In total, there are 26m boats and ships worldwide that could be fitted with AIS technology. SRT�s products, according to management, lead the market on both price and performance and are beginning to gain traction...."

Looks interesting from above posts.

keeps coming up on my screener couldnt get a deal online friday.

Whilst not arguing that progress is significant, especially the chart! I am not convinced, why?

Well, AIS has been around for a while and I'm not sure why its rivals are lagging behind by two-three years, which is after all a claim by SRT. Technologically speaking I'm not too sure why SRT claim to have an advantage?

Just had a look at their web site and to claim a security benefit is somewhat weak, if you don't want a government agency to know you're in or close to their waters, switch the thing off.

I'm also skeptical regarding claims in assisiting collision avoidance, yes they do increase spatial awareness and provide information that a watchkeeper otherwise would not have. On the other hand, like ARPA, it can create a false sense of security and there has already been at least one AIS assisted collision between merchant vessels.

Probably just nit picking

Nowt wrong with a degree of skepticism, with whatever stock. In my opinion nobody should invest in a stock without FIRST fully reviewing the negative case. If it still stacks up, go ahead and buy. If it looks good but there are still one or two doubts, perhaps go ahead with appropriate caution. If there are serious doubts, walk away (or even consider shorting it instead, especially where a fast share price rise is supported mainly by excitement).

At the very least, email the company, as a prospective investor, quizzing them on specific concerns - and see if the responses are convincing or not. And scrutinise the accounts.

With this particular company, it may well be that their current share of the market is a temporary phenomenon, and that any lead they have might evaporate. If the directors know that, it may be that they are intentionally positioning themselves as a takeover target rather than expecting to be a longterm player.

from TMF

http://boards.fool.co.uk/share-idea-software-radio-technology-12075545.aspx?sort=postdate


Share Idea - Software Radio Technology (AIM:SRT)

Share price at 22 October 2010 = 41.5p
Number of shares in issue at 22 October 2010 = 98.24m
Current Market Cap at 22 October 2010 = 40.77m

There is no point in looking at historic fundamentals. Up until this year the structure and activities of the company was completely different and was loss making. It is looking ahead where it is easy to see that this is a growth stock and should be priced accordingly.

I first became aware of Software Radio Technology in September 2009 after seeing this RNS from the company. It was at this point that I first bought some shares.

http://www.investegate.co.uk/Article.aspx?id=20090903070000P...

At the time I thought this order of $18m over 3 years was of significant size in relation to the SRT market cap at that time.

I remember after attending the Indigo Vision AGM in early November 2009, I was travelling back into Edinburgh City centre on a bus with Srsmlink and talking to him about SRT.

There are some similarities between Indigo Vision and Software Radio Technology

1. They both almost went bust and successfully changed their strategies.

2. They both claim to have technology which is world leading.

3. They both have worldwide markets that are set to grow rapidly.

4. They are both profitable with high margins.


A brief background to SRT can be found by reading this article in the Independent from 19 July 2010

http://www.independent.co.uk/news/business/sharewatch/small-...

On 02 September 2010 there was a lot of information given in the following
RNS, which was an AGM statement and trading update. In particular details of first quarter trading (Apr-Jun 2010) demonstrated that the company was now profitable with good prospects and visibility going forward.

http://www.investegate.co.uk/Article.aspx?id=20100902070000P...

Based on first quarter results it was now a company which was profitable and trading on a PE of around 11. So, debt free with money in the bank and a healthy order book (with a new order announced in the RNS). The products serve a global, growing market.

This recent video presentation by Simon Tucker (CEO) explains the potential the company has to grow. (October 2010)

http://www.iii.co.uk/tv/episode/simon-tucker-ceo-srt

The following article Gauging the true potential of Software Radio Technology (21 October 2010) is also an eye opener.

http://www.proactiveinvestors.co.uk/companies/news/22298/gau...

It appears that SRT have a dominant market position with no serious competition at the moment. With a relatively low cost base of around 3m a year and 40-50% gross margins, it wont take much of an increase in revenues to start generating much higher profits which of course would justify a much higher valuation.

On 2nd November the interim results will be known. I look for profits of at least 1m to show that this company is on an accelerating upward growth curve.

I think this little known company is worthy of further research for those who have not followed it thus far.

Higher than average volume this morning.
EDIT: End of day volume not higher than recent average.

This from poster 'sdavis' on another BB - in response to the question of when might it reach 1 a share:

..... 50m t/over in 3 years time. GP = 25m. Net profit would be around 10m (they will be investing in product development etc etc). On a 15* profit gives a vlaue of 150m, or approx 1.45 per share. You may want to discount this for time, risk etc etc. So maybe the 1 target is not pie in the sky. 2 may be a stretch though ...

excelent interim results out today, profits, revenue, cash generation all strongly up and with a massive market opening up in fron of them. SRT look set to run much higher.

As we said back on 2nd Sept 2010 (share price 24p) '..huge potential
for this low key AIM stock'
www.investorschampion.com/research/company/software-radio-technology

Webcast 7.15am tomorrow may be worth a listen.

Intriguing time for tomorrow's webchat - 7:15am. Maybe related to a 7am statement?

lifted from a d v f n


-there was a presentation for investors made by chief exec Simon Tucker today by means of a web-cast. He gave details of how the business was going, together with answering investors questions.
-a replay of the web-cast can be seen here:

http://www.futurecast.tv/softwarerad/

-its about 35 minutes long

-for those who don't want to watch (+ I recommend you do), here are my notes from watching the presentation.


SRT presentation 28/01/11

Experiencing strong growth, putting in the infrastructure to support that growth.


Why are SRT market leaders , with a high % of the market? Have 33 people who are consistently able to develop world class AIS products, have the best performing technologies and the customer base that addresses al the different segments of the market. If you are serious about AIS, then you come to SRT.

Growth has kicked in strongly, building a long term company for sustainable growth
Recently recruited 7 extra people, in areas like Projects Manager (13 projects on the go, compared with two last year), Supply chain manager, Customer Support, Sales, Product development.

Have fully equipped lab/development facility so new products dont come with a big bill for capital investment. Products is manufactured for SRT in two places, have improved flexibility at reduced cost to SRT. (note: SRT dont manufacture themselves, this is sub-contracted)

What do we sell?

2007 started shipping Class B. This year, launching new Class B. Competition? Always knew there would be competition, this is a billion dollar global market. The new Class B is substantially smaller, costs less and has improved functionality and performance. Competition are only just getting up to the old Class B sort of level.

Class A started shipping last year, is substantially better than the competition.

Recently announced going to accelerate product development, that includes:

Identifier.-

prototype stage now, having commenced work in November. For fishing vessels in India, Indonesia etc they need to be tracked by the authorities. Vessles have no power, nowhere to fix antennae so units have to be self contained , lot of advanced technology gone into this. Expect to start shipping in Autumn, first demos April/May. Huge response to product, can add another big revenue steam to SRT.

MOB (man overboard)

Again, strong tech needed, as radio waves dont travel through water, units needs to be practical for a life jacket. SRT have the technology, expect to start shipping by the end of this calendar year.

SART (search and rescue transponder)

Radar sart is inefficient. New standard coming AIS SART. SRT will be producing a AIS SART by year end and will add yet another revenue stream. Dont forget, these are additional revenue streams, not a replacement for anything currently sold.

Product life cycle is 5-6 years, so get a good solid period of returns. Across the range, 50% average gross profit.

Mandates kick in over a period of years , eg Turkey, 18 months, China , 5 years, Korea, 3 years. EU waterways, 4 years, biggest vessels first.

China, have 2 partners, in discussions with more. Market is for 500,000, SRT want to get most of it. Opportunity in the next 12 months for 80,000, but difficult to be sure on time lines, but at some point it will come in.

Korea, 90,000 vessels, several partners in Korea.

Australia are rumoured to be mandating, Russia, Morocco, Algeria, Brazil are others in the frame to mandate.

There is also the replacement market from the original Solas 2002 agreement, 15,000 to 20,000 a year Class A, could be worth $20m-$25m to SRT.

Look forward to the next five years as mandates drive considerable sales for SRT.

Leisure market follows a clear pattern, snowball effect, as more boat users fit them. Sweden good example, where the leisure market has taken off. Expect the leisure market elsewhere (eg US) to really get going in 2012, which will suit SRT. SRT wil have a completely refreshed leisure product line and the right distribution channels . This will give a sustainable boost to the revenue line.

We are right at the beginning of the AIS growth market. Although the growth shown by SRT has been strong, we are not yet into the meat of it. We are going to see extraordinary growth in this market and are preparing for it.

US market, mandate pending for 29,000 vessels, has been any month now for a while. Difficult to say exactly when it will come, but US are spending hundreds of millions of $ers on the national AIS syatem.

Forecasts, not put out forecasts for this year, but we will for next year (note, Im 100% sure that this refers to SRTs financial year, the next one starts April 2011, ie a few months away). Reasons are, as explained, its difficult to forecast, eg exactly when the 80,000 from China will come in. SRT want to see a pattern emerging before put out forecasts.

What SRT are doing is giving as much info as they can about the company, the order book and the trajectory for you to make your own investment decision. The 90% growth in the first half of the year demonstrates the trajectory. We are very happy with the performance of the business and where we are.

Looking to get the average daily volume of 225,000 up by increasing awareness of SRT , using our broker and PR people.

Regarding valuation ,markets will determine that. Or, if we had a suitor, they may pay a premium for strategic reasons.
Loking at our peers, ARM trade on a multiple of 100x eps, Qualcomm 28 x eps..

The business should be able to generate good free cash flows and be able to return those to shareholders. The object is to pay good dividends to our shareholders, not there yet, but hope to do so in the not too distant future.

Finishing up, AIS is a huge global market, we are just at the start of its growth. We are adding new products giving new revenue streams. Starting in 2012, we will be seeing recurring revenues, laying the foundations for that this year.

sp moving up nicely after webcast potential for their products seems immense.

sp up 15% so far today, news coming?

RHPS upgrade last night!

RNS new AIS agreement signed with major marine electronics supplier, sp moving up.

:-))))
lol

http://www.thisismoney.co.uk/investing/share-tips-and-fund-tips/article.html?in_article_id=523877&in_page_id=23

Investment extra: Full steam ahead at SRT
By Ian Lyall
26 February 2011

Software Radio Technology has enjoyed a phenomenal run in the last year as the share price has surged more than 200%.




SRT Shares: They have plateaued of late after scaling the dizzy heights

WANT TO KNOW MORE?Newspaper and magazine share tips
The smaller company fund that made 296%
FTSE LATEST6001.2081.22

MIDAS EXTRA TIPS Get additional share tips from the Mail on Sunday mid-week: Find out more

Savvy small investors gave this stock a shove in the right direction, though institutional interest is growing.

SRT finds itself in demand because it has carved out a potentially very lucrative niche in maritime electronics, and has first-mover advantage.

The firm appears to be taking the lead as it has announced a string of ever larger orders for its automatic identification systems used in boats.

The shares have plateaued of late after scaling the dizzy heights, but analysts see the current price of 40p as a staging post for bigger and better things.

My intelligence suggests there are very few sellers at this level and plenty of interest from the big City funds eager to get involved.

What they have spotted is the market opportunity open to SRTRT. To comprehend that you must first understand the company's products.

As I said earlier, SRT makes automatic identification systems. The AIS acts as an electronic name tag, which also shows the vessel's location.

Although it has competition in the form of Weatherdock of Germany and Taiwanese firm All-Teck Marine, they are about two years behind SRT.

Currently all vessels over 300 tonnes are forced (the official term is mandated) by international maritime laws to carry these automatic identification systems.

However, India, China, the US and the EU will soon require most boats, irrespective of their size, to carry these devices.

What is driving the market is a realisation that maritime traffic needs to be tracked and monitored both for safety and security.



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In all there are 26m vessels worldwide. The latest batch of mandates barely scratches the surface, but they create a market of one million boats. Of course, this will grow as other nations follow suit.

AIS is just one product but there could be multiple opportunities once the system becomes commonplace on vessels.

SRT is already looking into producing a man-overboard location device.

In November the company came to the market and raised 2.5m at 40p a share, which fulfils SRTRT's immediate capital requirements.

The institutional placing brought in blue-chip backers, and allowed a number of existing investors, including chairman Simon Rogers, to sell a chunk of their stock.

SRT boss Simon Tucker is realistic and believes there will be interest once the larger players wake up to the opportunities presented by the AIS market. 'At some point we will come up on the radar and someone will make a decision,' he adds.

The company is expected to give a trading update towards the end of next month, followed by full-year results in May.

City broker Daniel Stewart predicts sales will be 8.1m this year, rising to 11.6m in 2012, which gives pretax profits of 1.9m and 3.4m respectively.

It means SRT is valued at a comparatively modest 12 times 2012 earnings.

Our verdict: Not one for widows and orphans. However if the order flow continues to build the shares should float higher on a rising tide of good news.

I'm tempted to set a generous 30p stop loss just in case the shares drift a little.

Hmm, looks like it's floating towards good news today possibly - sp up nicely this morning

RNS states that they have agreed to sell equipment directly to the RNLI.

RNS excellent final results.

Looks like a tech that has to go on up . . . . yet why is Dir Selling?

Bad vibes IMHO....and if there is real money in nautical kit, the big boys will move in, the Rules will change by EU Directive (or US)...and SRT is back to being on the wrong foot.

Do they have a Big Partner?, that could be the clincher - and Dirs that Buy.

So even at 27p, Bargepoles for me, for the time being.