A Virgin Trader

Transense Technologies (TRT), the tyre pressure monitoring specialist who, among other things, develop surface acoustic wave (SAW), wireless, batteryless sensor systems for the automotive industry, is a stock I noted in my first week of virgin trading – July 09 (it feels like much longer), as a potential one to watch.

Everything I had read while doing my research screamed ‘potential for the future’, although how far in the future is another question. There was a management change (half the board arrived in the last year), lots of new partnerships were forged including: Honeywell, Melexis, Michelin, Sengenuity, Stack, Tai-Saw, Texas Instruments, SCHOTT, McLaren Electronic Systems and Carbon Motors.

On the downside it has had its share of troubles and current investors have had a long and patient wait to taste real success.  Oh yes; it has yet to make a profit, it has very low volumes – as you would expect, and the market spread – the buying/selling transaction cost – is bigger than I would like.

However after sitting more or less dormant for quite a while, news came  during the week of a supply agreement with Goodyear Dunlop Tyres. Brewin Dolphin said (and I quote from a guardian newspaper report):

This news is further evidence that Transense’s new management (since the first quarter of 2008) are continuing to transform the business model in line with strategic goals: to reduce reliance on a small number of major licensees; to generate revenue through supplying product not only through licensing intellectual property; to find quicker routes to market and to transform the company into a sustainable cash generative business.

Anyway last week I jumped in again with some ready cash the second I heard that the deal was done. Now I think it is a case of joining the patient crowd to wait and see where they go from here.

Time for a cup of coffee and a very, very long good book to read.

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Tags: Transense Technologies