TTI - Traffic Technologies

[Fab]

I have been recommended to look at this stock. It is a small caps but with the big infrastructure investment planned by state and federal government it might be interesting to own some.
I wondering if someone could give me more information about it and why it might be a winner or a loser?

 

[Plasmo]

bump - interested in this company, the concept sounds like it has potential to exploit a niche and valuation is low, but the financials look pretty horrible. Thoughts?

 

[blinkau]

I was lucky with this one had a order in at 44c was 1c away from been filled but pulled out and never got on board. From what I have heard (might not be true) the company is poorly run. Someone I know went for an interview up here in their office near Strathpine and said it was a badly run operation.

I havent followed it much at all ever again but one thing I have noticed is every road works I go to I keep an eye out for their equipment... none always seems to be coates hire etc

 

[Korban]

TTI - Traffic Technologies LTD

Hi All, first post here. Thought id start with this little fella (TTI). Bit of a spec stock, but an announcement to throw out the current board with a new and improved one should bode well for the stock (and company) if its approved. Could be a good one to jump in for a quick buck if it goes ahead. Im holding at 6.8c, hoping to see that double. One to watch...

 

[Korban]

Yeah i hear its poorly run too, but thats why they want new mgt. The current board is not doing the best job, but the new bloke that they want (Con Scinis) knows the market, was previously there (when they were at 50c)and has another business in the traffic industyr (Traffic Group). Could be great opportunity to amalgamate the two businesses if he gets voted - dont know what his thoughts are though!? Anyways, touch wood...

 

[Korban]

I consider this good news (cant post the link as i dont have enough posts! but asx announcement that TTG will defer its listing until after the board meeting). Probably good as hopefully the new board can put in place strong strategies with the two traffic companies if they become voted in.

Shares and volume both increasing coming close to the big management debate. My 2c - I vote Mr Con Scrinis, Astra Glen Pty Ltd and KJ Aldridge Investment Group to fix up this business and see the return of 50c a share! They know what their doing and have full faith in making this business work - not in the likes of the other party who issued a share placement of 15% shares at a heavy discount (3.5 cents) to their current value for "additional working capital" - back in mid August! More like they needed more voting power - certianly not in the company;s best interest.

 

[Huskar]

Came across something I haven't seen before and was hoping someone with better accounting skills than mine could enlighten me.

TTI has been struggling along for a while though has recently had a new insto come on board in the form of PIE funds. Had a bit of a run though back down to ~7c. $11m market cap.

It paid its maiden dividend in March 2013, but here is where it gets interesting. A dividend reinvestment plan was put in place at 5% discount to market price. Sweet you might think.

But it looks like if you don't take up the reinvestment plan what appears to be a third party (Halcyon Corporate Pty Ltd) funds the portion of the dividend not taken up. See note 6 of HY13 report. TTI thus seems to be issuing a dividend but in fact is discreetly raising money via a share subscription and giving Halcyon a discount to the market price on the shares!

 

[coolcup]

Came across something I haven't seen before and was hoping someone with better accounting skills than mine could enlighten me.

TTI has been struggling along for a while though has recently had a new insto come on board in the form of PIE funds. Had a bit of a run though back down to ~7c. $11m market cap.

It paid its maiden dividend in March 2013, but here is where it gets interesting. A dividend reinvestment plan was put in place at 5% discount to market price. Sweet you might think.

But it looks like if you don't take up the reinvestment plan what appears to be a third party (Halcyon Corporate Pty Ltd) funds the portion of the dividend not taken up. See note 6 of HY13 report. TTI thus seems to be issuing a dividend but in fact is discreetly raising money via a share subscription and giving Halcyon a discount to the market price on the shares!

This is simply an underwritten DRP and is extremely common in the share market. Think of it like a non renounce able rights issue that is ubderwritten. The company is giving all holders the chance to participate but if they choose not to they are still guaranteed to get all the funds they want. Problem is if the underwriter is not a natural holder of the stock (like an investment bank) this can cause selling pressure after allotment.

 

[Huskar]

This is simply an underwritten DRP and is extremely common in the share market. Think of it like a non renounce able rights issue that is ubderwritten. The company is giving all holders the chance to participate but if they choose not to they are still guaranteed to get all the funds they want. Problem is if the underwriter is not a natural holder of the stock (like an investment bank) this can cause selling pressure after allotment.

That makes sense thanks for the response Coolcup!

 

[peter2]

No posts for seven years. That says a lot about this company.

Recently TTI has been contracted by Ausgrid to replace a lot of old lights with newer LEDs. This contract is a start and if TTI can do a good job may revitalise this company.

Price spiked on the news and many disillusioned investors took the opportunity to sell. Since that day, the sellers have paused and price stopped falling. There's been a nibble of demand but the daily volume is very low. Interesting but needs more time.

 

[peter2]

Blimey, this sleepy old company's share price has come alive and is creeping higher. There's even been a few more high volume bullish bars lately (blue arrows in my charts). Price has reached my initial target (0.04), so I posted the monthly chart for an idea of where to next. That's up near 0.08 - 0.09 but I think it may take a few more years to get there.

 

[Dona Ferentes]

Blimey, this sleepy old company's share price has come alive and is creeping higher. There's even been a few more high volume bullish bars lately (blue arrows in my charts). Price has reached my initial target (0.04), so I posted the monthly chart for an idea of where to next. That's up near 0.08 - 0.09 but I think it may take a few more years to get there.

Blimey, indeed.

I guess every technology must have its day .... it's just a matter of whether TTI can clain its (rightful) share?

Traffic Technologies Ltd (TTI) is pleased to announce that it has entered into an agreement to acquire the business and assets of the ITS business of Artcraft Pty Ltd for a cash consideration of $750,000.

The ITS (‘Intelligent Transport Systems’) business focuses on the design, development, manufacture and supply of electronic road signage and software systems to customers across Australia. Based in Brisbane with an average revenue over the past three years of approximately $4.9 million, ITS monitors traffic and displays important information to motorists in a relevant and timely manner so that they can make informed decisions ahead of time, enabling better informed motorists to help create safer and smoother traffic flows on our road network.

The acquisition has been structured as an asset purchase with TTI acquiring the business and assets, along with customer contracts, staff, plant and equipment and a finance lease liability.

Commenting on the acquisition, TTI Managing Director Con Liosatos said, “The acquisition of the ITS business will significantly enhance the Company’s position in the ITS sector. Electronic information displays represent a value proposition for state road authorities and local councils and are being increasingly used for traffic management on congested roads.

The acquisition will also enable the Company to expand its operations in Queensland along with increasing our “Smart City” footprint through the Companys proprietary software “TST”. In today’s traffic environment, static road signs and street signs are no longer enough to provide motorists with the right information when they require it. Intelligent transport systems have technologically progressed in the transport industry to include electronic variable message and travel related information signs and sensor technology.”

 

[System]

Join Con Liosatos, the managing director of the globally significant and profitable IoT business Traffic Technologies (ASX: TTI) for a special investor briefing this Friday, 26 November at 1pm (AEDT).

In the session, Con will discuss:

• How this globally established and profitable business makes transport infrastructure safer, cheaper, less congested and more sustainable.
• How they’ve recently grown revenue rapidly to $52.3 million, with 40% recurring revenue.
• How the US$1.7 trillion global IoT market is predicted to grow up to US$12.6 trillion by 2030.

This is a live and interactive session, you simply need an internet connection to participate.

Book your spot here: https://bit.ly/3CQA3Jv

 

[The Triangle]

TTI has generated an EBITDA of around $4 million for the past two years on ~$55 million revenue yet only have a market cap of $13 million. Normally that sounds pretty good as a starting point for me but what seems to be killing their chances of profit and decent cashflows is the debt ($13m) and insanely high finance costs ($2.1m). Much too risky for me to make an investment, but if a few things turn TTIs way - e.g a few more orders come in, inventory (levels built up in FY22) gets cleared out, inflation gets passed along for FY23 then I think TTI could be very well placed. But they have to dump that high interest debt first!!!