Trackwise Designs (LON:TWD) – this just has to be a stonking short!

First half revenues of £2.39m (£1.55m) to end June saw a reported after tax profit of £0.92m against a loss of £0.06m. Net cash was £1.61m, the end December figure was a debt of £0.3m. The interim earnings came out at 4.98p per share.

This company is a manufacturer of specialist products using printed circuit technology. It has customers in Europe, North America and Australia. Not many of them, it seems, have placed real orders of any size as yet.

In fact, looking at the results statement I am left somewhat confused about the actual value of the business going forward.

However, the recent announcement of ‘£38m’ of orders over the next three years from a nascent UK-based electric vehicle maker, helps to spoof values a bit, I suppose.

Its broker is now looking for sales to more than double this year to £7.2m and then up to £14.2m next year. In the same period pre-tax losses are estimated to come in at -£0.3m for 2020, then up to a pre-tax profit of £0.4m next year, generating 3.4p in earnings.

I do not think that I could trust any revenue and profit indications coming from this company. How can its shares at 165p, be worth anything like this current price.

This company is capitalised at a stonking £38m, I would suggest that a holding price of 50p would still be too high until the company has shown itself to be of value and that its indications can be trusted.

I am glad that this ‘spoofing’ has taken the share price above my Target Price and I would now want to be very far away from being hooked in again.

(Profile 10.04.19 @ 92.5p set a Target Price of 150p*)