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Logical Thought
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My name is Mark B. Spiegel and I'm the Managing Member of Stanphyl Capital Management LLC. I can be reached at: mark (at) stanphylcap (dot) com. My Twitter feed is @markbspiegel
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Stanphyl Capital Management LLC
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I don't have a blog, but here's a link to a WSJ article regarding my thoughts on the "flash crash"
  • Titan Logix (Ticker TLA In Canada, TPCFF In The U.S.) 2 comments
    Mar 15, 2013 9:44 PM | about stocks: TPCFF

    I recently accumulated a decent-sized position (at a basis of CAD 0.76/share for my fund and CAD 0.81/share for my PA) in a small Canadian technology company called Titan Logix. Titan Logix makes radar-based fluid level measurement devices (replacing old-fashioned mechanical systems) for tanker trucks, primarily in the energy and aircraft industry but soon to expand into other fluids, including edibles. The company has approximately $4 million in annualized run-rate EBITDA (net of capex) and around .12/share in annualized run-rate earnings with around $7 million of net cash. Thus with around 26 million fully diluted shares outstanding, at tonight's close of CAD 0.88/share it's selling for around $16 million net of the cash which is only around 4x EBITDA, 5x earnings and 1x revenue for a fast-growing company (albeit, one with some short-term oil & gas cyclicality) with gross margins in the range of 50%. A modest 12x multiple on those earnings plus the cash would make this a $1.70 stock while a "growth multiple" would put it well over $2.

    Disclosure: I am long OTC:TPCFF.

    Additional disclosure: The Canadian ticker for Titan Logix is TLA and I'm long both the Canadian and the U.S. listings

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Comments (2)
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  • Crocket
    , contributor
    Comments (202) | Send Message
     
    Hey Logical, thanks for the report. What does the competition look like? What is the word on the street from users of the product?

     

    Seems interesting.
    20 May, 04:44 PM Reply Like
  • Logical Thought
    , contributor
    Comments (4404) | Send Message
     
    Author’s reply » So far the only competition appears to be old style mechanical gauges. Titan claims to have around 70% of the new tanker market for Canada and is approaching that figure for the U.S., hence the move into other verticals. I think the best way to judge the "word on the street" is via revenues, which grew hugely over the last few years and are now very closely tracking new tanker construction-- in other words, it's definitely an "often ordered option." For instance, look through these listings and you'll see many references to either "Titan" or "TD80": http://bit.ly/1k54Bfu
    21 May, 09:27 AM Reply Like
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