TOROTRAK REVVING UP

From 3iii bb....Hello All,
Torotrak are not in the position to force OEM’s to adopt the IVT hence we are entirely in the OEM’s and tier 1 suppliers hands.

OEM’s are a conservative bunch, preferring evolution of existing technologies rather than a large jump to new. They will not adopt the IVT until they are 100% convinced there are no hidden faults that can occur when you go from a few hand built units to volume quantities and can be built at a competitive cost. This is where the tier 1 supplies expertise comes in.

That the IVT works, produces the benefits claimed I have no doubt about, the SUV’s are there for all to see (if not drive!) so why do we get all those posts about transmission losses etc?

The biggest problem (IMHO) with MM was that he got so wrapped with what he saw every day at Torotrak, he could not believe that OEM’s would not drop everything and start using the IVT as soon as possible. Unfortunately this has led to unintentionally misleading comments by himself that gave us unrealistic expectations of introduction time scales (remember 2003 being touted). When these did not materialise the share price collapsed.

So the main thing that DE needs to do is just give clear information with regards what is happening with a realistic time scale as to when it will likely to be appear in vehicles. We can then make up our own minds what the shares are worth.

At the moment I believe that the price will only return to the three-pound mark (at which I bought in at) even when an announcement that an OEM is going to use the IVT is made. So I will only break even on this at best, or will lose the lot if nothing happens which we cannot still rule out.

The temptation is to buy in at these prices and average down and that is why I will be watching closely as to what information comes out from TRK in terms of its quality, hoping that it gets better than the ‘when not if’ statements we have been getting of late. I know that confidentiality clauses will prevent them from saying who etc but surly a realistic time frame given by the tier 1’s should not be a problem?

Any way I hope the above ramble makes some sense, and wish you all a Happy New Year.