# CXZ - Connexion Telematics



## springhill (22 October 2010)

ECS are looking to change focus from a security system based company, and are now seeking to purchase, via Alphacoal Pty Ltd, the business and assets of Pu Neng Coal Chemicals Ltd from Vigor Assets Ltd.
This looks a convoluted process to my poorly visioned eye, but in an attempt to cut through the convoluted announcement speak BS, ECS is looking to take over a coking coal processing plant and bring it up to environmental specs. In the mean time consolidating at 10:1, leaving a company with 76m shares at a value of 20c.
More info here.
http://www.asx.com.au/asxpdf/20100901/pdf/31s86m33zbz4xz.pdf


----------



## rybka (20 December 2011)

*Re: ECS - ECSI Limited*

Hey Guys

ESCI Limited is interesting now, I know its a SPEC buy (and one deal fell through), but this one is involving quite a few big parties. Looks like if this uranium deal goes through, looking at past announcements and size of assets, this stock may hit 3-6cents

Anyone have any opinions?


----------



## Veslex (17 January 2012)

*Re: ECS - ECSI Limited*



rybka said:


> Hey Guys
> 
> ESCI Limited is interesting now, I know its a SPEC buy (and one deal fell through), but this one is involving quite a few big parties. Looks like if this uranium deal goes through, looking at past announcements and size of assets, this stock may hit 3-6cents
> 
> Anyone have any opinions?




i've also been tracking the progress of ECSI & i agree with rybka, it seems like it's on the up!


----------



## rybka (27 January 2012)

*Re: ECS - ECSI Limited*

See the size of the assets, this stock could easily hit 4/5/6 cents, look at the annoucement just announced...


----------



## asx256 (2 February 2012)

*Re: ECS - ECSI Limited*



rybka said:


> See the size of the assets, this stock could easily hit 4/5/6 cents, look at the annoucement just announced...




i too am happy with investing in ECS at the moment. this stock was recommended to me by my broker who has extensive knowledge in the industry.

according to him anything under 2 cents is a bargain atm. according to him three brokers in Melbourne are giving ECS a strong buy


----------



## Veslex (9 February 2012)

*Re: ECS - ECSI Limited*

asx256 r u willing to divulge who your broker is? I'd be keen to learn what he/she is discovering re:ECS so I can get some further clarity on this stock. And what the basis is for the STRONG BUY recommendations.


----------



## rybka (14 February 2012)

*Re: ECS - ECSI Limited*

Looks like a few sophisticated investors have invested in the company, looking at the companies announcement today. I'm new to forum and not sure if I'm allowed to post what has happened.


----------



## Trembling Hand (14 February 2012)

*Re: ECS - ECSI Limited*



rybka said:


> Looks like a few sophisticated investors have invested in the company, looking at the companies announcement today. I'm new to forum and not sure if I'm allowed to post what has happened.




When trying to ramp a dog no need to be wary of forum rules...... Give us your wildest most positive shot. We are all waiting to jump in.


----------



## Joe Blow (14 February 2012)

*Re: ECS - ECSI Limited*



rybka said:


> See the size of the assets, this stock could easily hit 4/5/6 cents, look at the annoucement just announced...




As per the forum rules, please outline the basis of your valuation of "4/5/6 cents".



rybka said:


> Looks like a few sophisticated investors have invested in the company, looking at the companies announcement today.




Actually, according to the announcement it was just one "sophisticated investor".



> ESCI Limited (Company) is pleased to announce that it has reached agreement with a sophisticated investor for the placement of 20 million ordinary shares (Placement Shares), at an issue price of $0.005 per share to raise an amount of $100,000.







rybka said:


> I'm new to forum and not sure if I'm allowed to post what has happened.




You are allowed to post anything that has been announced by the company or that is publicly known about their business or proposed business ventures. You are not allowed to post anything, or even imply that you have knowledge of, anything market sensitive that has not been announced by the company.



asx256 said:


> according to him three brokers in Melbourne are giving ECS a strong buy




Can you please name these brokers so that others may verify this claim.


----------



## System (16 May 2014)

On May 16th, 2014, ECSI Limited (ECS) changed its name and ASX code to Connexion Media Limited (CXZ).


----------



## kmlk (11 September 2014)

System said:


> On May 16th, 2014, ECSI Limited (ECS) changed its name and ASX code to Connexion Media Limited (CXZ).




Hmmm.... what are people's takes on this company. Somebody advised me to look into this company has some prospects, but may take a while to see a return?


----------



## System (13 December 2018)

On December 13th, 2018, Connexion Media Limited changed its name to Connexion Telematics Limited.


----------



## greggles (17 December 2018)

Some interesting trading going on in Connexion Telematics this month. Volume exploded out of nowhere on 10 December and continued since then apart from Tuesday and Friday last week. The ASX sent the company a Price and Volume Query last Monday to which the company replied that it was not aware of any unannounced information that would explain the recent trading in CXZ's securities. There have been no other announcements I can see that would account for the unusual volume and share price increase apart from the AGM presentation released on 26 November which detailed the launch of the company's Courtesy Transportation Program (CTP) program with General Motors. The soft launch commenced on 1 December with the full launch being completed on 2 January.

It definitely looks like someone wants in but there have been no change in substantial holding notices released recently that indicate this is the case. All will be revealed soon I'm sure.


----------



## Ann (31 December 2018)

This could make a bit of dough for the bronco riders out there. Looks like a bit of a pump and dump happening. If there are any longer term riders, may not be for you, this is a nice short term buck but be careful! I will put up a chart tomorrow as I have delayed data so won't be good till then.


----------



## Ann (6 January 2019)

*Possible Short Term Trading Opportunity*

This may be worth a look for short term traders, not a whole lot of interested in it but it looks like early days yet, the PVI is just moving up. Longer term traders may want to look elsewhere. Thanks to TripleB for the find.


----------



## Triple B (14 January 2019)

Ann said:


> *Possible Short Term Trading Opportunity*
> 
> This may be worth a look for short term traders, not a whole lot of interested in it but it looks like early days yet, the PVI is just moving up. Longer term traders may want to look elsewhere. Thanks to TripleB for the find.
> 
> View attachment 91180



No worries . I posted a pickin up  pennies thread so maybe those interested can find them . Sort of like a qick find index for those interested . its in the members section and I hope it will be used as a sort of quick heads up with short detail then directed to the stock section.
BTW the announcement that GM subscriptions have started was made this morning . 
The recent rise in price (41%)should have got traders attention , so the demand side was primed nicely .
The announcement today should be the kick start needed. 
Im not trading this ATM or any stocks . Focused on FX and metals/ oil daily trend trading .
However I like to do a quick scan once a week for these types . Just to build a method. 
Might even start to track these again on the asx watch list to make it real easy.


----------



## investtrader (31 July 2019)

Check the volume in the last 2 weekly bars!!!


----------



## barney (24 October 2019)

investtrader said:


> Check the volume in the last 2 weekly bars!!!




Could be on the move again.


----------



## galumay (19 January 2020)

Took a small position, one of my very few SaaS type businesses. I figure its debt free, cash in the bank, cash flow positive and has some potential if it can sign up any other companies like GM.


----------



## Dona Ferentes (19 January 2020)

> Connexion Telematics Ltd (CXZ, formerly Connexion Media Limited) is a technology company specialising in developing and commercialising software apps and services for the web connected car, mobile device and connected consumer electronics markets. The group operated in one segment, specialising in developing global information technology solutions for automotive industries in Australia. The Company is headquartered in Melbourne, Australia and currently has offices in Cambridge, Detroit.



 hmmm. I'd have thought the in-house teams would be first port of call, then the major IT players. How a $11mill AU outfit with one specialty can rise above them is beyond me.


----------



## galumay (19 January 2020)

Beyond me too, but the fact that they swung such a significant deal with GM demonstrates they must have something going for them!


----------



## galumay (22 February 2020)

Very strong HY results released this week, CXZ up nearly 40% on the news. If they can pick up some more customers it can develop into a very good business. Cash flow conversion is great, straight to the bottom line. I will add some more now in the dips.


----------



## Dona Ferentes (22 February 2020)

Am finding it hard to work out exactly what the company does, quite a bit of jargon there, but clearly they serve a purpose.

Good outlook statement, too .... potential to scale (and become the 'industry standard'?)


----------



## ben267 (30 May 2020)

Anyone read the quarterly activity report? It seems legitimate with sales and cash coming in. I'm surprised that a major IT vendor has not picked up the opportunity too, but given small revenue profile currently (7mm rev run rate) it doesn't really make sense for any large company to do so right now. 

Managing director leaving also a red-flag but growth profile and saas like business structure seems very interesting. Anyone else has additional thoughts? I'm trying to reach out to the management team to figure out more.


----------



## Trav. (30 May 2020)

@ben267 welcome mate. I have nothing to add but was interested to see what products they have and the vehicle tracking system looks impressive.

https://connexionltd.com/products/cxz-telematics/


----------



## galumay (30 May 2020)

I like the business, they have been focussed in the development and application of the product, and have managed to secure a significant client and successfully implement their systems across the organisation in the US. I think its a bit of a binary play, if they don't manage to pick up more customers then its just a profitable little business with no real prospects of organic growth.

On the other hand if they can pick up other customers in the major Auto companies then there is obviously a lot of potential growth with great scaling metrics for the bottom line.

Edit - Welcome to ASF mate, just noticed it was your first post after seeing Trav.'s post


----------



## ben267 (1 June 2020)

Thanks all, didn't think I would receive such a warm welcome. Other stock forums aren't so hospitable haha. 

This currently trades at a 5-6x PE which is extremely cheap, however this comes at a caveat. Their relationship with GM for the CTP program only lasts until 2021, so they might have to re-compete for any GM related contracts in the near future. This is their biggest source of revenue currently so it'll be a huge issue if they don't win this again. 

Their other business segment is Commercial Link which i believe was also with GM. GM recently decided to in-house this program which what previous posters feared about. This is indeed binary, if they scale properly, it could be a huge home run, if not, you could get another 4mm of cash on the balance sheet which isn't too bad I suppose.


----------



## galumay (1 June 2020)

Please keep talking about CXZ, its doing wonders for the price!


----------



## Dona Ferentes (21 August 2020)

fair to say it's* on track*

• Total Revenue up 131% to $8.20m (FY19 $3.56m)
• Net Profit Before Tax up 340% to $2.05m (FY19 $0.47m)
• Net Profit After Tax up 587% to $3.20m (FY19 $0.47m)
• Diluted EPS up 537% to 0.35c (FY19 0.06c)
• Net Cashflow up 254% to $1.49m (FY19 $0.42m)
• Working Capital up 256% to $3.35m (FY19 $0.94m)
• Tech and Support Team expanded by 33%
• OnTRAC CTP/CTA subscription base averaged 69k vehicles for the year
• COVID-19 impact on the business largely mitigated by increase in   recurring revenues
• Significant ongoing customisation and improvements to the OnTRAC program
• Growth initiatives pursued into FY21


----------



## galumay (21 August 2020)

Must be the biggest mover of reporting season! up over 90% at one stage today, a spiffy pop for me momentarily! Finished up over 40%, on basically no new news to the market, crazy world at the moment.


----------



## Tommy Shelby (31 December 2020)

The share price has been pretty stagnant since but the metrics are fantastic and the AGM presentation says all the right things. 

I'd back up what ben267 said about their revenue being 100% exposed to GM - surely they'd be scrambling to develop other sources of income. Considering their tech they could offer fleet management direct to SMEs or as a software for car sharing though I know there are a few of those.

I'd assume any further re rating would be due to diversification of the revenue through other OEMs or showing how sticky they have become inside of the GM network.


----------



## galumay (1 January 2021)

I think thats the underlying issue, the single client risk is the problem for CXZ, there is no certainty GM will continue to use them post this contract in 2021, so the business could be worthless within 12 months, or they maintain GM and remain a profitable little business with no growth, or they can win other car manufactures over to their model and remove the single client risk and odd growth!


----------



## Tommy Shelby (11 January 2021)

Yeah exactly, I'm in for a tiny position to dip my toes in. We'll see how things progress from here. 

What's your assessment of the turnover in leadership? I would imagine that would impact any sort of relationship/business development if they have a new CEO every 6 months or so.


----------



## galumay (11 January 2021)

Tommy Shelby said:


> What's your assessment of the turnover in leadership?




Well its certainly sub-optimal as you point out, hopefully there is some stability now.


----------



## galumay (2 February 2021)

Todays announcement about 2 new board members & new CEO looks like a step in the right direction, the new independent directors in particular look like good choices. Hopefully thats the end of the deckchair shuffling and they get the GM contract renewed and find some new clients!


----------



## galumay (20 May 2021)

Good news today for CXZ shareholders as they announce the GM contract has been renewed for 5 years, hopefully now they can concentrate on finding some new clients and de-risking the business.


----------



## Tommy Shelby (24 June 2021)

Looks like the business is tracking well with the launch of CXZTRAC - if my understanding is correct then this will enable CXZ to target dealers outside of GM's network


----------



## Tommy Shelby (15 July 2021)

price edging up over the last month hitting $0.02 today


----------



## galumay (15 July 2021)

Not really sure why the price is going up, its not like there are any surprises while its a single client business. We basically already know what the numbers are for FY2021, so no surprises likely there. Anyway, I am not complaining!


----------



## Tommy Shelby (19 July 2021)

I think the last quarterly showed good cashflow starting to come through now that CXZTRAC has launched. They racked up $500k in cash last quarter with majority of revenue coming from SAAS - any growth in clients/vehicle subscriptions should scale up profit/profit margins quite quickly


----------



## galumay (19 July 2021)

I think its probably just volatility in a micro cap, CXZ often jumps around in 10% range, i reality it hasnt gone anywhere in 2 years, the single client risk continues to hold it back IMO, I am happy to continue to hold a small position because its a pretty asymmetric bet, if they cant grow the business with new clients, its still a profitable little company that has little downside in the medium term, (especially since resigning GM.), on the other hand if they can get new clients or scale up CXZTRAC then it should show growth in profitability and ROIIC thereby earning a rerate.


----------



## Tommy Shelby (7 February 2022)

Latest quarterly from the 21st of Jan.

Still plodding along with $100k net profit in the quarter and tracking to $3.5 - $3.7m in revenue for the year. they also have $4.6m in AUD in cash against a $10m MC.

The pilot programs look like a good move away from sole reliance on GM for their model.

_Connexion signed Commercial Pilot Agreements (“Pilots”) with US automotive software companies Tollaid LLC (“Tollaid”) and Digital Dealership USA Inc (“Carsfast_

FYI don't hold anymore, sold in October


----------



## galumay (2 March 2022)

A very tough half year 2022 for CXZ, the chip shortage and general supply chain issues have had a huge impact on the business. Regardless it still turned a small profit and FCF Was actually quite strong but I havent checked to see what is driving that (inventory, receivables, or payables?) A tiny position for me so not too concerning and as supply chains normalise they should see a quick return to increased activity.


----------



## Dona Ferentes (16 May 2022)

A trip to the basement.

  "_Hello, anyone there?"




_


----------



## galumay (16 May 2022)

True, Dona Ferentes. Its been a tough year for CXZ, the only consolation is the resilience of being a debt free, profitable business generating FCF. I like the style of management, CEO Aaryn Nania is a good communicator and seems to be very focussed and driven in his role. Only a tiny position for me, but happy to hold thru the current issues and see what the future holds.


----------



## Dona Ferentes (24 June 2022)

_Will put this here; not sure CXZ will be a direct beneficiary as it's more the car companies morphing_.



> "Cars have been closed products. They tend to stay more or less the same for the whole life cycle, and that will change. They will become intelligent, they will learn from the driver, so your car after three years will be better than when you buy it, because it knows you.”​



​


> “Today software represents 10 per cent of the value of the car. In 2030 it will be 40%.”​



_Luca de Meo, CEO, Groupe Renault_​


----------

