... you were certainly a disappointment and even though many investors believed in your technology it was mainly a load of unrealistic potential.
I didn't lose much, I'm sure many will have lost a lot more and I hope, like me, they find some AIM shares that actually make money.
Well I'm not sure about a bidding war but your 5p valuation could be on the button. Our Brazilian masters would have pulled the plug long ago if they didn't see real value somewhere and I suspect that either a bidder is already in the offing or they want to a take the company in house before profits take off. Either way we're better off and from a personal point of view I was delighted to discover an extra 120000 shares tucked into my sipp which I really thought I sold a year or more ago. My isa holding had dwindled in value where I was about to give up on them too. About time I had some luck on aim.
"LSE:TPS:Turbo Power Systems rose threefold on Friday after management confirmed it is considering selling the company. The firm, which makes electric motors and generators, drives and power electronics, waited until lunchtime and a surge in the ..."
TCR, If memory serves right this was originally a spin-out company from Imperial and it wouldn,t surprise me if they still have a "founding" interest. They are all interesting points you make and I must confess i had always been confused by the loss-per-share calculations and had assumed this must have reflected the conversion of debt for equity. I had also convinced myself that TAO never took the company over because their interest was for only for a small part of the TPS business.
The frustrating thing I have found with TPS is the complete lack of information. For a listed company there is a woeful lack of info as to exactly what they are doing esp wrt all that R&D which I believe was largely responsible for the expansion in personnel and overhead costs of recent years. I could well be wrong, its been a while since I trawled through their statements! But a better statement from TPS would not go amiss IMHO!
Digging a bit deeper it looks like the reason that VSE / TAO may be reluctant to take over TPS or take it private is due to a poison pill in the 'A Ordinary Shares', see note 7 in the current results:
'...Under certain take over or change in control events, the A Ordinary Shares are exchangeable under "super exchange" rights, converting for 3 Common shares of the Company for every A Ordinary Share held.'
I think these shares aren't owned by VSE / TAO (anyone fancy doing some digging on that?); certainly about half would seem to have non-VSE / TAO ownership, considering the RNS from 31st May 2012 explaining who was buying 444,444,444 A-shares - and that these 2 people already had some A-shares. At that time that RNS also stated,
'Following the Subscription, there will be 892,777,778 A-Shares in issue. Should all A-Shareholders give notice to exchange their A-Shares into common shares of the Company, 892,777,778 new common shares of the Company would be issued, representing 21.1% of the enlarged issued share capital of the Company.'
So in the case of the poison pill tripling the quantity of common shares created, VSE / TAO would be significantly disadvantaged.
Looking at the current results I'm confused by the inconsistency in the number of shares used in the Loss-per-share calculations (note 6) vs. the significantly higher number of shares given in note 7 (Share capital). Anyone got thoughts on that?
Well done on digging that info out. TPS has been a dog in my portfolio for too long, although I did average down while TPS was well under 1p (I remain 'underwater' though). It's been a 'jam tomorrow' company for far too long, but the latest results do have a sense of beginning to turn the company around - and it's always had interesting tech behind it, just (to date) an inability to turn that into a profit.
I don't understand why VSE / TAO haven't taken TPS private, or merged it into themselves. Even with the price having gone back up to its current low level over the past few days, the free float is barely over 10% so the cost to VSE / TAO to buy this 10% would still be modest. The fate of TPS is in their hands, considering that they're the main creditor, but given their approach so far it looks like they're happy to support TPS, and for it to remain a separate company for the foreseeable.
That TPS is vulnerable to being taken out by VSE / TAO is a negative to me. However, there's also the prospect that they might sell some of their holding at current prices, given that much of it originates in an debt-to-equity exchange @ 0.45p / share. That would have the effect of giving TPS back [the appearance/perception of ] a bit more autonomy.
I don,t believe the recent price movement has anything to do with any rns or contract win. I think the answer lies in its research as it applies to the development contract with VSE which is the ultimate controlling shareholder of TAO Sustainable Power Solutions (UK) Limited, which in turn holds at least 75% of the issued share capital of Turbo Power Systems, and where TAO has been bank rolling this company -presumably its R&D where TPS looks to have been overcommitted given its resources.
Putting 2+2 together and probably getting completely the wrong idea this does beg the question of TPSs involvement with VSE and TAO, what exactly were VSE via TAO after. VSEs mission is in "developing, industrializing and commercializing comprehensive distributed energy (on-site generation) systems using renewable and less polluting raw materials".
Problem is VSE and TAO are listed as private companies and its hard to find any solid info on either of them other than the fact that TAO expanded into the US mid last year and VSE entered into a partnership with Scania to develop engines using alcohol and natural gas. VSEs development contract with TPS was for "the development of multi-megawatt power generation systems that will be used in association with VSE's gas turbines".
"The aim of VSE's motor-generator program is to develop a range of generators of 50KW up to 1,250 KW power, with high-performance, high-efficiency internal combustion engines. Their primary power sources will be renewable and/or environmentally sustainable fuels, such as natural gas and biogas.
Made up of compact units that can be used in a modular way, motor-generators have the advantage that they enable generating plants to be assembled quickly and safely with a wide range of power, and they provide for safe, reliable operations in continuous, emergency and peak regimes. As a result, this equipment can be used to replace existing, more polluting technologies in order to generate electricity in a fixed location and in heavy/hybrid vehicles such as buses, trucks, tractors and harvesters.
VSE's motor-generators use pure ethanol as fuel, and produce 68% less greenhouse gas emissions and 50% less noise than diesel motor-generators, as well as eliminating particulate and sulfur compound emissions. "
Now, this could be a huge opportunity and whenever I read anything from TSE it always carries the statement:
Turbo Power Systems Inc. (AIM:TPS.L) is a leading UK based designer and manufacturer of innovative power solutions. TPS's products are all based on its core technologies of high speed motors and generators and power electronics and are sold into a number of market sectors including aerospace, rail, and various industrial sectors. The Company's products provide high performance while improving efficiency and reducing process energy consumption compared to existing technologies."
From TPS website we also have:
"Our high efficiency generators and grid-connect / islanded inverters offer technology platforms which allow many forms of energy sector applications to be realised. Typical energy sector areas in which our offerings can be utilised to the benefit of the OEM, system integrator and end customer are;
High speed generators and inverters for direct connection to gas turbines for distributed generation
High efficiency generators and inverters integrated into energy recovery systems such as rankine cycle, diesel engine power take-off, Stirling engine, steam turbine, process gas energy recovery systems
Customised inverter solutions for solar, tidal, wave and wind power projects
I wonder if TPS has had a breakthrough -pure speculation on my part!
I spent about a week last summer combing through all the AIM listed engineers looking for a wild card punt, i chose TPS. Again not wishing to ramp, but this year i now want my hands on some CRA. Should of bought at 7p but with TPS having fallen from 0.25 to 0.1p I was somewhat hesitant at the time. I tend to trade and be overweight FTSE350 engineers although I will short the FTSE100 as a hedge.
Indeed I came here,because of the news release last week, looked at TA as I can scan for signals , then thought of it as a reasonable gamble .
Usually though its true I scan for signals then investigate quickly to know the company better .
I had never heard of TPS prior to last week though, in all honesty its hard to know the real fundamentals of so many stocks out there. So TA followed by Fundamentals indeed for me. Also AIM is best usually avoided due to spreads/liquidity , hence a minority of my trades . This I admit was a gamble. I usually just trade Indices and Forex with the odd stock I know on the Ftse or gamble on the AIM if am fast enough . My usual ones though are gold, oil and real estate.
So I find it important for me to know both but I can scan for TA faster, whereas on companies I don't know it takes sometime.
Hmmm! I tend to do it the other way around onedb1, assess the fundamentals, shortlist then look at the TA. Admittedy the fundamentals on this were dire but I had to ask why was TAO always willing to prop this company up, modify and extend its loan agreements and convert debt into share equity. So my purchase was an ouright gamble/punt
But everything about the TA as of today now tells me this is going higher, price means nothing unless you also consider volume and volume is screeming! But I guess we can all interpret that a different way. I continue to hold but may set an LO sell for 2.5p.
Bought these at 0.29 simply to trade them , but sold too soon , sometimes makes me a bit angry to not be able to fully appreciate a good rise . 80/90% rise felt good but could have been 3 fold.
Hard to scan all TA then fundamentals unless you are following this particular stock .
That would be my reading too mj but it must also include TAO who are into TPS for quite a significant wedge. All that money and personnel spent on research and i can,t figure out exactly what the focus has been these past few years while they haemorrhaged and continue to haemorrhage funds. I,m not into wanting to ramp an AIM share but TAO and regional grant money must be buying into something promising IMHO. Whatever it is, I suspect TPS is keeping its cards very close to its chest and there has been no leak. having said that, the sheer volume of shares now being traded makes me think the cat is out of the bag and we will be the last to find out. Well that was my logic for taking the original punt.
Guys I am sure there must underlying something else because they reduced employment to 175 heads and they revived grant for doubling up TPS employment. Any organisation giving the money for increasing of employment must see any research or business plan which will set the basement why employment will increase.
The production YTY has increased however overall financial statement was worst - I think this company is affected by economic downturn but in US technological industry had changed downturn into positive trend.
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