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I have recently built up a decent shareholding in #STAR. I think it has the potential to re-rate at a higher price. Background to the reasons for buying are as follows:
For 30 years I was a Cargo Underwriter at Lloyd’s of London. During that time I had the privilege of being a member of UK Committee of Cargo Underwriters for 17 years, the Chairman for 2 years, and a member of the World Cargo Committee for 4 years.
A Cargo Underwriter’s remit is to receive more in premiums than they pay out in claims (plus the expenses of running a business).
Claims can be reduced by working with a client using loss prevention, which can either reduce claims, or if the claim is not the fault of the client, to pin point who was in control of the cargo at the time, and ensure their insurers pay and not our client.
All clients have an excess on their insurance policy, and usually also a % of the profits of the insurance policy are returned to them. Use of #STAR products can reduce claims, directly saving the client money and increasing the possibility of a return of some of the premiums.
The majority of claims are from fire, theft, flood, water damage, breakage, damage from temperature fluctuation, accident to the carrying conveyance. #STAR’s products can monitor all of the above which helps clients and insurers.
If potential thieves are aware that the product has a Starcom monitored tracking device, they are much more likely to leave the product alone, and plan to steal something else instead.
I like that #STAR are devoting much more of their time at the moment in trying to obtain clients involved in the transportation of pharmaceutical products that are to be kept at cold temperatures, which obviously could be very lucrative.
I have had several discussions with Starcom about the insurance industry, the methods of marketing within the insurance industry, and the type of people to target for marketing.
I have been mentioning Starcom and their products with some of my insurance contacts, to discuss with their clients, the beneficial use of Starcom’s products.
Over $250 trillion of goods are moved around the world each year. #STAR’s client list is obviously a very very small % of this. With good business, good marketing, good contacts, and a bit of luck, I see no reason why Starcom’s revenue and profits should not expand exponentially.
