Eurovestech Share Discussion Threads

[kenmitch] 06/7/2010 17:15

sbs

EVT will probably continue to ignore general market moves in both directions. Don't know how long you'll have to hold to see a good profit from the shares.

I'm pinning hopes mostly on Toluna doing very well and that feeding through to the EVT share price....

... but I was also doing that this time last year and the year before that! But that Greenfield buy looks so good that this year might be the year.

EVT is a quality share and the share price is too low.

The buybacks have so far done nothing at all for the share price but that isn't a surprise!

Can't see much if any downside but it needs proper news to get the share price moving up again - e.g something special at last from Magenta.

[sbs] 01/7/2010 18:44

Bought some today. It's no fun following a company you don't have a slice of ;-)

[kooba] 21/6/2010 06:45

city am picked up on it.

TRUMPET BLOWER
Love it or hate it, the vuvuzela horn's incessant drone has been the soundtrack to the World Cup tournament so far. But those in the latter category will be delighted to know that it may soon become a thing of the past. Audionamix, a Paris technology firm, is in talks with ITV to license software that filters out the blare of the South African horns from football games without losing other sounds.

Audionamix, half-owned by Richard Bernstein's Eurovestech, has already sold the technology to French TV portal Canal+, which began offering viewers the ability to turn vuvuzelas off last week.

[kooba] 20/6/2010 13:03

Broadcasters Filtering out World Cup Vuvuzelas




mist is still there doing clever things now called audionamix and evt own 46.3%
Audionamix SA

Sound Separation Technology


Location Paris with offices in New York
Founded 2003
CEO Olivier Attia
Investment Date July 2007
Share Capital Held 46.3 %
Website www.audionamix.com

Mist Technologies SA ("MIST") is a Paris based innovative company which now markets its products under the Audionamix brand. Mist has developed a unique sound separation technology that enables mono and stereo film and music files to be re-mastered into high definition, home cinema quality surround sound. MIST caters to the increasing demand of consumers for the best quality audio to accompany high definition programming becoming available on home systems.

MIST's patented technology was used in the leading film La Vie En Rose, following which MIST has entered into discussions with some of the world's leading music and film distribution corporations with a view to updating existing catalogues using MIST's sound conversion technology. The company's expertise in voice extraction is being marketed to the film industry, particularly in relation to the international issues of major films. It has also been made available to the large and growing karaoke market.

MIST's technology uses complex algorithms, using the Bayesian theory applied to the separation of sound sources and on statistical models for sound signals. It manages to break up sound sources instrument by instrument producing a real space effect, without any loss of sound purity. It applies at the same time to the currently existing physical devices as well as to the future channels of content distribution. The company has completed its first strategic project with a major recording label for the release of a remastered music recording, which it sees as confirming its potential in the "back catalogue" market. UnMixing Station, a source separation solution for professionals, was launched in 2009 and is being tested by post-production studios in 26 countries.

www.audionamix.com

[longshanks] 11/6/2010 09:32

I guess the dilemma is that for a market as illiquid as that in EVT shares there are so few options to bring the market cap closer to the NAV. There just aren't enough shares traded to have the market reach a "happy equilibrium". But this is true of most AIM stocks and is not purely an EVT problem - though I have to say EVT is the least traded of the stocks I hold.

That said, the advantages of such a badly weighted system are that it makes it much easier for long-term-holders to observe and take advantage of weak sentiment and conversely sell when they see the price get too far ahead of itself.

The purpose of the share buy-backs is to take stock out of the system that some large holders have wanted to sell. These large holders are probably just wanting to take profits and so want to sell without adversely affecting the market price of the company. I presume they petitioned the BOD and the BOD listened.

This is to our (small PI) advantage too as it means we won't have some interminable stock overhang looming over the company holding the price at a depressed level.

Given that much of the share buy-backs have been done at a lower price than when they were announced is a fair indication that this price point was agreed with brokers and the long-term-holders up front. I imagine that once the buy-backs are complete and brokers/MM's need to replenish their books - we should start to see the anticipated narrowing between NAV and market cap (at least that is what I hope).

However like you say - buy-backs are a blunt instrument and unless we get new demand the price could stay depressed. That said, as mentioned above, a depressed price will offer wily and knowledgeable investors (including directors) a very good buying opportunity.

[kenmitch] 04/6/2010 15:27

I agree with all that. Good to see you posting here.

The only thing that would give an Encore size share price lift for EVT imo would be if there was a bid for Toluna.

KSS has been a huge success too, but it's time now for a couple of the others to start to fulfil their promise.

That applies especially to Magenta. I attended an investor presentation years ago when the C/E implied that what they hoped to achieve was as big as the internet. So though EVT seem happy enough with progress - enough to increase their stake a while ago, investors must surely be hoping for more by now?

I agree though. This is a classic example of an undervalued well managed Company where the share price is too low.

There's no temptation to trade EVT for obvious reasons and I've held for years except for a short while at the depths of the last bear market, though I have also top sliced. As for how the shares have done? For a while with the rise up from 1.75p the gains were spectacular. But the shares were up to the mid 20s ahead of the 2008 falls and since progress since then has been so good, especially for Toluna, and bearing in mind the substantial discount to NAV it's a bit surprising that the shares haven't done better since markets in general bounced after March 2009.

Other than modestly enhancing NAV those share buybacks haven't worked yet. Which is why - and this seems to be the one thing we're not agreed on - I would prefer any cash from mature investments they sell going to the next potential Toluna, and not in to more share buybacks.

[dangersimpson2] 04/6/2010 12:25

(What a rise for Encore yesterday btw)

Yes :-)

It goes to show how inefficent the market can be in small cap shares. Yesterday Encore's 2 potential oil fields (Cladhan & Catcher) were being valued at £1.7m (0.6p/share after taking off cash & securities of 15.9p/share), after a good well result on one of them they are being valued at £41m (14.1p/share).

Although Toluna has slipped a bit under recent market conditions EVT still trades at the value of its cash and marketable securities of 13.5p/share.

The Encore example shows that its newsflow that tends to drive the share price not just valuation, and while the size of rise that Encore has seen could only probably come from Toluna within EVT's portfolio, we need to see continued good newsflow within the whole portfolio to see the valuation anomoly closed.

EVT need to continue to mature their investments, selling ones where they can no longer add value and using the cash to buyback shares or invest in the next potential Tolunas.

Encore also shows that revaluations occur quickly in small caps and its very hard to time these things. IMO its much better to hold quality companies on low valuations and wait for their day in the sun than trade in and out trying to second guess the market.

[kenmitch] 04/6/2010 09:51

More shares bought back, at 13p. Share price up just 0.25p on the news.

Again bought at less than NAV so NAV enhances a fraction - though this seems a very expensive way of doing that. Might as dangersimpson says, be more effective if the discount was to cash. (What a rise for Encore yesterday btw).

The Toluna share price has drifted back again despite a positive update recently.

The shares are long overdue a better run but if they hoped the buybacks would be the trigger for that they will be disappointed. I'm not as I never expected them to result in a higher share price. Research (e.g Morgan Stanley) shows clearly that Companies that don't buy back tend to outperform those that do! BP could now do with some of the £30 BILLION they wasted on buybacks - all at higher prices than now!

So we'll need to wait for more good news. Otherwise the EVT price might be around where it is now up to results time in September.

[kenmitch] 14/5/2010 21:00

Many thanks.

That's a really comprehensive and helpful reply.

The finals are usually in September and as you say an upward revision in NAV is again likely. Not so sure that it will do much for the share price though. THE key to share price performance remains Toluna where evidence that the Greenfield acquisition was a stunning bargain should be even clearer by then.

I agree strongly that should the share price drift down further the shares will then be a strong buy and I might well add more. It's very much a long term investment though. The share price really shouldn't go any lower but that doesn't mean it won't. Years ago I bought these at 6p and averaged down all the way to 1.75p. The reason for the fall to such a low price was a new idiot fund manager dumping the entire holding of his predecessor at whatever price he could get.

I suppose there is always the risk of something similar happening again, though most of the current big holders are loyal long termers who have held for years.

[dangersimpson2] 14/5/2010 13:59

Well, the buybacks did increase NAV since they were all bought at less than NAV. They didn't really increase the share price though since they were all large discrete chunks from single holders rather than a general support of the market taking all shares below a certain value.

They still have £0.5m earmarked for buybacks which they haven't spent AFAICS so there maybe further buybacks if large scale sellers appeared. What we can't know for sure of course is how desperate those who sold would have been if they didn't have the company to sell to. It may have been the case that we would have seen large blocks worked through the market and a much bigger drop if the buyback wasn't in place.

I'm a big fan of buybacks when they are done at discount to cash, such as at Encore or the potential buyback at Volvere.

It's less clear cut here with buybacks at a discount to NAV but not cash, I think I would have marginally preffered a bigger special dividend but I'm fairly indifferent really.

I think the next big news will be the Finals in September(?). There was no update in valuation of their companies at the interim stage so the valuation discount is not as apparent. If these investments continue to do well then we should see an upwards revision to NAV in the finals and maybe some upwards share price momentum.

I would hope they are being relatively pro-active with realising gains on current assets as they mature though and recycling these into new opportunities. Investment companies always trade at a discount to NAV because they have overheads and you have less control than direct investment - a narrow discount seems to be a function of, activity in managing the portfolio, visibility of asset value, commitment to return excess cash. We've had all three in the past 6 months or so hence the share price responding positively however the newsflow appears to have died down for a while and hence the share price has drifted. The recent past shows that EVT is committed to these though, hence any share price drift over the summer months which isn't a function of bad news should probably viewed as buying opportunty with the NAV revision in September as a possible 'outer'.

Danger

[kenmitch] 14/5/2010 11:14

Belated thanks dangersimpson2.

The shares have done nothing since the share buybacks and are now drifting lower.

Assuming a reason for the buyback was a hope that it would give the share price a lift, are there any views on how long this is likely to take?

I've been strongly against buybacks for years. Can any here who read these posts who support buybacks post to say what the EVT buybacks have achieved so far.

Or would the money have been better spent (or saved for) the thing they do best - finding quality undervalued investments with huge potential?

[dangersimpson2] 20/4/2010 12:28

My NAV calculation here:



Cash is a bit trickier since it depends on how much has been paid out in investments within the subsiduiries and wages.

I make it -0.5m (@ 30/06/09) + 7.1m (TOL partial sale) + 12.8m (KSS retail sale) -7.5m special dividend -2m buybacks = £9.9m minus wages and investments.

However cash in the interim results is down as only £2m. But since then they have paid out £9.5m in cash, so I would expect that at least some of the £15.7m recievables would be the cash from asset sales now recieved.

Since they have just done a special dividend they probably have enough cash to meet their wages and any future expected investments but any further return would have to be dependent on further asset sales.

[stegrego] 30/3/2010 12:39

Just browsing here.

Looks a good investment, a bit similar to VLE.

Could someone just clarify the cash & NAV side of things for me pls.

I know they own 30% of Toluna which is going well.

Ta

[longshanks] 30/3/2010 11:49

it has always been so...

EVT is undervalued and has historically failed to get much of a fan club. However times are a-changing and steps are being taken to close the gap between NAV and share price; the current anomalies are probably just temporary and worth exploiting.

EVT represents a very safe home for cash in these uncertain times: huge cash reserves, huge discount to NAV, huge potential in underlying investments.

[jambo172] 30/3/2010 09:05

Can any one explain why EVT was down yesterday as its largest holding Toluna was up 5%.
Why would anyone sell when it is on such a discount.
Most strange

[longshanks] 29/3/2010 09:45

some decent results from TOL today. The TOL share price is up 4% and EVT is....down!!

[jambo172] 26/3/2010 15:16

Redleafboy

Wow that was some time ago.
But yes I was there.
PET at 120p - hmm wonder if it will scale those heights again.
Sorry was in a dream world then.

[redleafboy] 26/3/2010 13:48

Hi Jambo172 - i remember you from the PET thread i think some time back. Is that correct?

[jambo172] 26/3/2010 13:46

Mangal - you are right.
Value will come through at some time.
Personally I think that time is fast approaching.
2p cash return plus buyback and largest holding good to be sold.
Rest of the portfolio in for nothing.

[mangal] 23/3/2010 21:27

Yes, this one has a life of its own- the share price seems to bear no relationship to the underlying. I remember buying these dirt cheap @3p sometime in 2001 & selling out most at around 20p in 2007. The share price has simply kept drifting down since; One day, yes one day, the value will come through again !

[kenmitch] 23/3/2010 17:40

Excellent results today - met with a small fall in the share price. Don't know what they have to do to wake investors up. Perhaps equally good results from Toluna could do the trick.

So EVT have now been going 10 years - with their share price over 3 times higher now. Compare that with many others, as they point out, that have either disappeared or are cheaper now than then.

TOL and KSS are the very big success stories but some of the others are doing well too.

Wonder if there will be any Press comment tomorrow?

[dire cons] 23/3/2010 17:25

The board must be extremely frustrated with the markets apathy towards their performance.

This screams 'buy more!', but when you're at the mercy of the market, you do have to think whether you are just investing dead money, and wtf will it take for value to out.

[longshanks] 23/3/2010 07:59

Nice bullish interim report out today. 11p EPS for the last year kind of sums it up for me....how on earth are these trading at just 16p!