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|rainmaker: CR Can't disagree- if a stock is trading at a substantial discount to it's intrinsic value, then sooner or later the share price will respond positively. I've reached that stage with VIG where I'm thinking what more does the Company need to do?...when will the share price ever move up?.As an out and out Value Investor, I'm very familiar with that feeling of exasperation which is normally when the share price starts to move up strongly-the darket hour is just before dawn, I suppose.Still have absolutely no intention of selling at this side of 36p
Name change is obviously a good thing-as I think that it may have deterred some potential Investors in the past. I always assumed that VI stood for Vero International
|rainmaker: Last time I checked Computer Software Sector was trading on a prospective p/e of 17(that would give VIG a share price of 35pence) and a historic p/e of 24-that would give a share price of 36p against the current price of around 6.75. Very strong case that VIG deserve a higher rating due to their gross margins and growth rate. I wonder if we are going to see an explosive move in the very near future. If you check the chart a few years ago it moved from 10p to 36p in a very short time period!
|tole: Yes a good article...'Cheap as Chips' as the header says :)
Some good stocks highlighted in their 25 cheapest shares on the stock-market - all offering 'sparkling growth potential at bargain prices'.
Just as you say a shame they got the PER wrong based on 2.06 EPS
Anyway share price perking up a little L2 2v1 17-17.5|
|rainmaker: Many Thanks Tole- IMHO Techinvest definitely one of the better Newsletters/Tip Sheets.Recent share price drop is rather disconcertingly but as Ben Graham once said along the lines of "let the Company's underlying fundamentals as dictated by Earnings, Assets etc and not the share price act as your guide to value".Wise words indeed. AGM on Wednesday
|rainmaker: Agreed Baner-VIG is much better Company with better margins and growth prospects than Delcam.I may be proved wrong re bid but it isn't needed to see VIG go through 30p within the next couple of months.I have no intention of selling out anytime soon as VIG is still massively undervalued even after the recent rise. IMHO it's not too late for new Investors to buy at current levels if they look at the current rating and it's growth outlook.This Company's share price should still fly!!!
Certainly I feel that Investor's longer term returns would be better served by VIG's continued independence. Expect them to introduce a dividend in April 2008 when they will have the distributable reserves.
|rainmaker: More buying....can't be long before the MM move the price higher..Will check level 2.Note that VIG's share price is up 80% in the last six months, a similiar move in the same time frame will take it to +32p before the year end.VIG is currently trading a ridiculously low prospective p/e of less than 9 times
|valhamos: Rainmaker. Apologies, yes you're right - the broker forecast was after the Camtek acquisition was announced. I noticed the two months Camtek contribution; it suggests there may be more profit to come than the contribution we were expecting based on the acquisition announcement, though difficult to extrapolate with any confidence based on just two months.
As regards dividends, I can only think VIG were under pressure a while back from some of the VCTs to pay a dividend to some way compensate for the low share price. But now the share price is now moving in the right direction, and while they continue to identify profitable acquisitions to invest the cash they're generating, I can't say it's a top priority - certainly not for me.
Still very cheap imo and although you've always been more optimistic than me on share price movement, 30p can't be too far away.|
|rainmaker: Hi Guys-Just catching up with the recent results.Valhamos believe that 1.82p 2007 forecast was after Camtek acquisition so based on recent historic earnings the current year should be 2.16p(Forecast was 1.17p for 2006)putting the shares on a prospective p/e of just 8.33 when the sector average is 17 which would mean 36p. expect VG's share price to make substantial progress from current levels and reach 30p in the next few months.
Very encouraged by the results if you look at Camtek acquisition it contributed operating profits £100k in just two months equivalent to an annual figure of £600k compare that to it's last year's profits pre takeover.Obviously there will be more productivity gains to be made.Absolutely convinced that this share price is going to fly
|rainmaker: Thanks Des-Camtek-their Software Engineers have one big reputation. Price a bit rich but you can't expect expect to pick up such a Company with World leading products on the cheap..an excellent acquisition. Very conservatively,assuming there is no growth next year then VIG will make 2p in eps-translating that to their sector trading on a prospect p/e of 17 that equates to a 33p share price.
Of course VIG have much better growth prospects than the sector as a whole and they will enjoy growth..convinced the share price will sky rocket!!!!!!!!!!!!
|hugepants: This is very good news I think. Planit(PLN) have just announced an acquisition as expected (of PathTrace) and it illustrates how much VIG is undervalued.
Heres the RNS
Pathtrace is a leading Computer Aided Manufacturing (CAM) software developer
whose highly respected edgeCAM suite of products operate in the specialised
So PathTrace http://www.pathtrace.com is a very similar business to VIG
Planit have paid 5M in cash for PathTrace.
In the financial year ended 30th June 2005, Pathtrace made an operating profit of £189,000 on turnover of £5,958,000. Its net assets as at 30 June 2005 were £2,035,000.
Compare these numbers with VIG's.
For a HALF YEAR to end June 2005 VIG had an operating profit of £213,000 on 5.4M revenues and thats AFTER writing-off £249,000 of goodwill. The NAV at this date was 4.35M and included 1.4M in cash. Current market cap of VIG is 3.4M
Id suggest if PathTrace is worth 5M then VIG is clearly worth a lot more. VIG share price could easily double and still look modestly valued.|
Vale Int share price data is direct from the London Stock Exchange