Market's view on Transense
Published on April 2024
- Stock watchers note ongoing sales of large share quantities at prices around 90p and discussions about setting up a funding page to assist the board in finalising deals.
- Discussions highlight continued outflows from UK small cap funds, with managers having to cut positions for cash management and due to penalties for holding low liquidity stocks. Dowgate raised funds through an investment trust that can handle higher levels of illiquidity.
- There are updates on shareholdings changes since the last annual report, notably an increase in stake by Dowgate, offset by changes in holdings by Seneca, Javed Abrahams, and Gerald Oury.
- Concerns are raised about the large amounts of shares available on the market for months which could impact stock prices negatively, though a recent buyback has somewhat mitigated the drop to lower price levels.
- Speculations are made about potential modest future deals and the slow incremental progress through various applications and deals expected in the coming years.
- The pace of operations is criticised as slow due to reliance on client development, with successful products often sold to fund operations, highlighting the challenges faced on AIM.
- There are discussions about the disadvantages of being undervalued on AIM and considering de-listing in favour of listing in markets like NASDAQ, which may offer better valuations and facilitate expansion.
- Concerns about the lack of recent buyback activity which might indicate underlying issues within the company.
- Observations are made on the geopolitical situation in the Middle East affecting market stability and investment decisions.
- Positive comments on the performance of Itrack and Translodgik, expecting this to reflect positively in upcoming financial results.