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Real-Time news about Vanco (London Stock Exchange): 0 recent articles
|sirace: from lse:
14 Feb '08
12 Feb '08
I can only advise you to contact Morten.Singleton@vanco.co.uk, he will try and answer your questions as clear as possible, you know we or I cannot release any news regarding present dealings and future contracts until they are completed and both or all parties involved release the details to the media and obviously the markets, please use next weeks RNS as an example. Regards my holdings in Vanco you are right about the share options in the region you have stated, there are only 2 options which I will not state on this board but only that we are given a period in which to purchase the total shares allowed at a designated price, you can decide for yourself what you make of that, but I am very confident personally. Recruitment is an ongoing drive at Vanco, they are striving to get the best people for the company, the future is very, very promising and this is always part of their selling of the company to possible employees, please see .http://www.vanco.co.uk/CMAN/2D302D2327 What I would say is please contact Morten Singleton, he very approachable and will answer your concerns to the best of his ability.
12 Feb '08
I have been an employee at Vanco for over 3 years now and do take an interest in the bulletin boards and find it quite hilarious with some of the comments and statements regarding Vanco. We have had 2 meetings over the past week regarding the share price and the reasons for such a huge drop, the company are to be honested bewildered to why but have strongly denied any manipulation of the shareprice. They have also denied there is any talks and evidence of any takeover of the company. An RNS will be issued the week commencing the 18th February 2008 as stated recently. All employees are allowed to buy shares in the company and are only allowed a certain amount to hold while employed by Vanco, this only changes when someone leaves, that has always been the ruling and it is up to the individual to decide if they want to sign up to it. Personally I will never give up my shares in the company because I believe it will and most certainly has a massive future. Please feel free to contact Vanco anytime, you will always get a response to your questions within reason and obviously under the rules laid down when it comes to share dealing, you know what I mean there I should think, the company cannot give information out to anyone until it has notified the markets.
|gujibiglips: fairenough11 - 31 May'09 - 17:57 - 28836 of 28836
Thats the whole point mercury,VIYs tech does work and someone wants IN as low as possible.100% accuracy so far,so why do you think the share price is still under 10p,GIVEN THIS FACT?
Thanks to sawman on HMB forum.
This is the period when subtle, sometimes professional, shorters and bashers come out of the woodwork so below is a post I came accross years ago that I have always kept. It's worth a read and an eye opener to the less experienced. These people exist and lurk around these boards so beware and DYOR.
As many of you are aware, I am a paid 'basher'. As childish as bashing might seem on the surface, a lot of money actually exchanges hands based on the work we do. I work(ed) for an investment firm based in Toronto, Ontario, Canada. I worked in cooperation with several others and under several aliases in several online investment forums. Including PresidentBush, Tooth18, OneVultrue, 7Midniqht and Herbacious on Stockhouse.
To make a long story short. I have had an epihphany in the past few days. I watched the movie Fight Club, and as brutal as the movie is on the surface, it actually caused me to question a lot of things I do or have done in my life. The next day I was involved in a single vehicle car accident, which caused my vehicle to roll-over. I walked away from it all, but it got me to thinking. I only live once, is this what I want from my life? Is this what I've always wanted to do - I am not even proud of my career or myself. I say that I am a stock broker, but that is a lie. We are basically paid con-men. I quit today, no questions asked. Just walked out. I am 23 years old, and this is not what I want out of life.
The scheme works like this. Be aware of it so you can guard yourself. Our company monitors undervalued companies with strong assets and strong potential. When this company, XXX.V, for example, reaches an overbought situation, our company begins selling shares that we do not own in hopes of purchasing these shares at a lower price later on. As the share price dips, our company purchases these shares for a cheaper price at the lowered ask price. That is where we come in - we bash the stock online to try and further the negative sentiment so that the stock gaps down further and increases our profit margin. This type of activity is called naked short selling and it should be illegal. Our firm is a well established one that deals out shares that we do not own, then send out an army of online rats to undermine the company's successes to drive the price down.
As an employee, I never really realized the effect it had on investors or companies. I just really cared about opening the gap as much as possible, so that I could make a larger commission. It was all just a big game.
And a follow up:
LEARN ABOUT HOW BASHERS WORK: For instance: did you know that some Bashers are paid?
IGNORE THEM ...learn how professional Bashers are paid: When you REPLY to Bashers you give them an opportunity to earn appox. 5-7 dollars. The service agreement they enter into with their employer states their messages will be monitored for content, profanity, lies, etc. but Overseers and the like don't have the time to check all their Bashers messages. Only occasional spot checks are done. Those who manage the Basher will generally read the headlines to see if a Basher is replying to other posters by name. That tells them the Basher isn't just "posting blindly" or repeating the same message over and over since they won't pay for those.(True to form a Basher will put the bite on anyone, even their unscrupulous employer). A Basher will attempt to milk three to five replies per post at one to two dollars each. This way the Basher spreads negative influence to as many stockholders as possible. A Basher will create this discussion thread because it takes less time reading more messages than is necessary. This ultimately allows the Basher more time to post and make money. In general, NEVER ENGAGE A BASHER. Make them read all the posts and think up ways to enter the discussion. NEVER ENGAGE A BASHER; if you do so then YOU BECOME THE BASHER,S AID! If you feel compelled to challenge a Basher do so without mentioning his/her true alias in your response. This will make it hard for the Basher to use your post as a revenue stream. Read the news, do your own homework and make your own decisions. Get real time quotes and follow the stock for a couple of weeks. Due Diligence is key here. Know that there will be a time when the stock runs up which will be followed followed by the Bashers and those that missed the boat. The Bashers will trash the stock by saying such things as "it's a Pump and Dump" and "the company is lying" and deceiving. There goal is to scare off newbies and potential new investors by "shaking" you out of your shares. Take the time to confirm your DD ,trust your own judgement and believe in yourself, pick your point of return or loss and live with it. Don't listen to hype or Bashers trust your own judgement. Live by the rules you have created .
|junk: Looks like we have been well and truely fleeced...
Excerpts from CNBC-TV18's exclusive interview with Puneet Garg:
Q: If you can take us through the financials of this deal first? The company has paid only about USD 76 million or USD 77 million for this purchase. Is there anything else you take on by way of debt? Will there be other liabilities for Reliance Globalcom?
A: Vanco is a clean company, we do not have debt. Debts were on the banks and is all cleaned up. They have written it off for one sterling pound off their 123. And the lessers who had 40 million sterling pound pending on this company has also been written off as one pound. So, essentially we have taken a debt free company at USD 77 million. We now have an opportunity of enjoying the upside from this company. This company has been in business for some time and has a revenue of USD 385 million on an annualised basis.
Q: Is the company profit making, because I was going through the website and I can see the Profit Before Tax (PBT) but not the figure after tax. Is the company a loss making company that you are acquiring?
A: When you look at this company, it has been consistently generating cash and since it doesn't have assets, all of its cash goes into the bottomline as well and it makes profit. So, it is an asset light company, as it says it is in managed services and virtual network operator. So we expect that we would be able to turnaround, we will be able to put Reliance synergy. As you know in Reliance Communications we have a big enterprise business in India, we have acquired Yipes last year, where we have United States a big set up of our assets and customers, where we have more than 1,000 enterprise customers over there. Now in Europe we have more than 220 marquee customers and we believe that in our strategy, it fits very well and our stakeholders and customers has only upside and upside from the company.
Q: If you can tell us what is the loss that the company made in the last available quarter or year? What kind of turnaround time you are looking at, will it be as early as the current financial year itself and what are the synergies that Reliance Globalcom will get in terms of probably expanding its client base?
A: When we look at Vanco, I think our biggest opportunity we have is of cross sell and up sell of all of our products to their 220 customers. And similar opportunity for our customer base in India, as well as in United States. When we talk about turnaround, I think we have significant experience by now by turning around Flag and then Yipes and integrating it into Reliance Communications. I believe that it would not take more than 3-4 months for us to integrate Vanco in Reliance Communications platform, which we created as a global services platform and I believe that this company would start contributing to balance sheet of Reliance Communications in a significant way in the current fiscal year itself.
Q: The company has been on a bit of a losing ground as far as its share price and marketcap is concerned two years back. What exactly are your plans to turnaround the company and in what ways would you go about it?
A: This business today has a margin of over 30% as we look at revenues and cost of goods sold. I think when we look at the upside the real challenge is that how do we bring the cost efficiencies in this business and we look at our current base of Reliance Globalcom with 40 countries network, we see that we should be able to contribute at least 10-12% of upside in this company on an immediate basis, which should make it much more profitable than it was in the past|
|masurenguy: Positive operating update with a combination of overhead cost savings and further increases in the sales pipeline. Admin expenses were up by £5m in H1 so if they can cut back by £10m over the whole year they should remain broadly inline with last year. However the downside is the increase in the RCF of a further £23m which just underlines the working capital consumptive aspect of their undercapitalized business model which will continue to be regarded as a negative in this credit crunch climate.
This is the fourth trading update over the past 4 months and during that time the share price has fallen by a further 60%. Management are certainly keeping shareholders and the market abreast of both progress and developments but still seem to be unable to address the real issue of undercapitalization.
Share price has been marked up by more than 10% this morning on a comparatively low volume of Buys. Is this rise sustainable or will it run out of steam as some holders take advantage by selling into the rally !
Vanco, the global Virtual Network Operator, is pleased to provide a further
update on trading.
Following a review of the working capital requirement of the business, typically carried out each year at this time, the Company has extended its existing Revolving Credit Facility by £23m to £123m until 2012 on the same covenants. This provides good working headroom to meet temporary fluctuations as required and facilitates the early implementation of the cost reduction programme updated below. The additional facility is at a margin and fees consistent with the market.
On 22 February, Vanco announced a cost reduction and efficiency programme that
improves the cash generation outlook for the business. Savings of £6 million in
the current financial year to 31 January 2009 were identified at that point
which, when fully implemented, should result in annualised savings of £8
million. Vanco is pleased to announce that additional savings of £2 million have been identified, increasing annualised savings to £10 million. The programme is expected to be completed largely by 31 July 2008 with most of the financial benefit falling in the second half of the year. The cost reduction is largely being achieved through general overhead control and head count reduction which has been made possible by the significant investment in software and systems the Company has made in the last few years, and by moving certain jobs to its low cost centres in South Africa and Eastern Europe. To date, 105 jobs have been moved from high cost countries, and that will be increased to 150 jobs by 31 July 2008. This cost reduction programme will not impact on the growth outlook for the business, will enable us to maintain and improve service delivery to customers and, for the first time, will result in the year-on-year operating costs of the business being lower.
The company is pleased to confirm that current trading continues to be good and
the pipeline of opportunities is strong, with Vanco selected as preferred bidder for over 20 per cent more new business opportunities as at 31 March 2008 than at the same time last year (these are all subject to contract).|
|masurenguy: Extract from the above link in post #795.
"Noting that other VNOs are a tenth the size, Timpany said that if a strong competitor does emerge, Vanco is planing on buying them up. "We have a natural place as consolidator," he said. "We seek to acquire others in the industry we invented." He cited the recent acquisition of Universal Access as example. It was turning over $45 million (£22.5 million) in the US market, an area where Vanco wanted to boost its presence."
How on earth do they think they could fund any further acquisitions at the moment ? Their existing debt is circa £70m. If they tried to use paper they would further dilute a share price that has already fallen by 85% over the past year - I'm sure that shareholders would really appreciate that !
Furthermore, what is this reference to the 'recent acquisition of Universal Access'. That was two and a half years ago in the summer of 2005 - how can that be classified as "recent" ! At that time they were able to fund an acquisition via a placing because the share price was then circa 450p (more than 500% above the current price) and rising so it was easier to raise money in the market at that time. There also was no credit crunch in operation at that time and neither were Vanco in a position where they found it necessary to publicly reassure the market that they still remained in compliance with their banking covenants either.
I really don't find 'acquisition talk' to be a credible proposition at the moment and wish that they would focus their attention on addressing their current funding requirements/capital base in relation to supporting the growth of their existing business activities !|
|masurenguy: Allen Timpany, founder and chief executive of Vanco, slammed local investors for their lack of ambition. "There´s a short-termism here which says we want you to build a very high quality 200m pound business. I want to grow a business that is £2bn. I´m taking a longer-term view of the opportunity, to which the Americans say ´great, absolutely´ and the UK market says ´actually we´d sooner you took a shorter term view´. "I do not think the market, particularly the UK market, realises how big the VNO opportunity is."
Vanco, which claims to be the world´s largest VNO, has been growing at around 40 per cent annually and is expected to record revenues of £225m for its latest fiscal year. Timpany said he was confident that Vanco´s share price would rise this year and pointed out that every single technology company had suffered similar phases of being out of love with the market.
Yeah BUT how many profitable and growing technology companies have seen their share price fall by 85% during this period. The real cause of this share price fall is the very high gearing (£225m of revenues against £70m of debt), the real issue which he evades altogether !
Edit: The bullish comments from the CEO in Barcelona yesterday has failed to stop the slide in the share price this morning - I think what people really want to see is the gearing being properly addressed !|
|masurenguy: Clearly the market is in significant downtrend, which of course has some varying negative effect on most share prices. However, name me one other company that has increased sales and profits consistently for four years in a row, who have also reported sales +25% & PTP +48% at this years H1 interims, and seen their share price collapse by 80% over the last 10 months !
The only other companies who have suffered enormous share price falls like this are either losing money or have issued significant profit warnings. The debt issue here far outweighs the negative market sentiment on equities in general.|
|masurenguy: "I find that a slightly odd statement. If they rise to 200p on Monday and the market cap is therebore double their dect then does that make them a buy?"
There is absolutely no logic to underscore the reasoning behind that conjectural assumption since debt level is not the only factor that influences a share price. If the share price doubled next week it would not alter the leverage/undercapitalized issue in any way and consequently it would not make them a buy. In fact the downside risk factor would have doubled and if I was a shareholder I would probably take the opportunity to sell at that price.
The relationship between the market cap and current debt is both indicative of how undercapitalised they are and the risk/reward ratio of buying or holding the share. It increases the negative risk of dilution and/or insolvency and potentially the positive risk of becoming a vulnerable acquisition target which could add a premium to the current share price. Personally I still would not buy until the working capital issue has been addressed since I believe that there is a considerable risk of dilution based upon the need to raise further capital in the future. That's just my view and it does not constitute any form of investment advice - you should try and do your own analysis and form your own conclusions.|
|johnroger: Buy Vanco at 171.5p
argues Rob Cullum, editor of TrendWatch
In the spring of last year, we were seduced by the attractions of international telecoms outfit Vanco (VAN). Vanco doesn't do hardware, not at any rate the kind of hardware required by the big telcos such as Vodafone. Instead, it shops around all over the world, purchasing capacity from the local carrier of choice, with the object of packaging and offering its clients "fully-managed network solutions".
In a business environment that is truly global (we said last spring), no corporation, however large, (British Airways, say) can afford to own the telecoms assets upon which they are critically dependent. The solution is a long-term contract with a specialist such as Vanco. Vanco's job is to get the best prices, and to design a system which uses technology most appropriate to the particular needs of its customers, thus ensuring that service capability is maximized but at optimum cost. And Vanco could point to the fact that blue chips such as British Airways, Siemens, Ford Motor Company, Avis Europe and Pilkington had entrusted this vital part of their enterprise to it.
The company has key relationships too with IT integrators and outsourcers, including Computer Science Systems and IBM. And Vanco can and does provide services to the very carriers upon which it depends Bell Canada, AOL and Qwest to name but three. The key here is Vanco's unique portal, enabling it to access the entire telecommunications network of the US. Moreover, Vanco can and does support the international requirements of a number of their regional clients.
It also had a super earnings record. At that time of our previous recommendation, three brokers analysed Vanco; only one of them, WestLB Equity Markets, said that the shares were a buy. Its forecast for the year to January 2007 was 18.3p per share. The outcome was just 16.3p. So the earnings target was missed by some way; and the shares, which stood at 475p when we wrote (and which we hoped would regain the 600p at which they had been trading a short time before) headed rapidly in the other direction. It was only the TrendWatch stop-loss mechanism which stopped us from catching a truly dreadful cold.
To be fair, we had noted that it was clear that something was going on. The company stoutly averred that there had been no discernable change in the competitive environment, but the implication (although Vanco did not say so) was that its increasing size needed ever larger transactions to feed it, and that these both required heavy up-front expenditure and took longer than smaller deals to complete and to produce revenue.
The headline cause of the subsequent halving of the share price was delays to three contract renewals, resulting in sharply increased cash outflow, despite the rapidly growing turnover and earnings. Against this background Vanco was chasing customers for upfront payments at period ends, typically at a discount, which in turn impaired margins.
By September last, the company admitted that a review of its procedures had concluded that it had focused on the achievement of short-term cash targets at the expense of long-term margins, and that ending this practice would have a one-off detrimental impact to free cash flow in the current financial year of approximately £20m; and that year-end net debt would now more closely reflect the underlying net debt during the year with net debt as at 31 January 2008 expected to be around £45m.
Vanco now has a new finance director, whose unusually high profile underlines the areas of weakness that caused investor concern notably the fear that the company will need to come to the market for more cash. Vanco denies that it will need to do this, pointing out that, notwithstanding the foregoing, it's trading well within of its banking covenants. As the most recent report indicates, the winning of contracts, which has never been a problem, continues apace. The company uses this fact as a peg to hang the assertion that, with an increasing proportion of its turnover being contracted (£421m as at October 2007) this will tend to make the erratic cash flows associated with the winning of new contracts of less overall importance in future.
The brokers' consensus is that earnings per share this year will be 24p, climbing to 32p by January 2009. That's a splendid growth rate. This gives an earnings multiple of only 8 in the short term and less than 6 next year. So the shares look a real bargain.
But wait a bit. We've noted the problem of high borrowings and white-knuckle cash flows, this at a time when banks may be getting more sensitive to their exposure. To this, you must add the fact that, although the company's policy towards treatment of up-front expenditure (and thence the definition of 'earnings') is perfectly acceptable accounting practice, if there were to be either a voluntary or enforced more conservative accounting change, the stated earnings figures could face sharp downward revision, damaging the investment case.
So, a situation not without risk. Persistent weakness in a share price (especially when coupled to high levels of debt) is a much more sensitive pointer to risk than earnings forecasts. But, just as we ignore the latter if we don't like the prospects ourselves, there are (rarer) cases where we ignore the hoisting of storm cones too (only one of the five brokers, Charles Stanley, says 'buy').
Is Vanco heading for stormy waters? We can't be sure. The shares have now become so cheap that it may even become the target of a bid, a fate that befell two of its rivals: Infonet and Equant (swallowed up by BT and France Telecom respectively).
We see the risks, but we see too that the achievements still continue solid. Earnings are forecast to grow at a fast rate, it's still picking up major contracts and it describes market conditions as 'buoyant' (with no ill effects from the credit squeeze).
If you're a widow or an orphan, we wouldn't commend this share to you. If not, then our assessment is that the potential reward outweighs the risk but do set a 20% stop-loss, just in case. BUY.
Spread: 170.75p 172.25p (0.9%)
Market Cap: £106.6m|
|mike456: I have to admit to buying into Vanco on Friday afternoon when the share price headed towards £3.80 as I believe the fall in share price since mid June may be an overdone reaction to the disposal by the exiting FD, who according to the recent anouncement needed the cash to pay personal tax liabilities and apparently they were going to be bought back at a later date.
Having seen the share price fall by 15% I got to thinking that the other directors wouldn't want to see a continued fall in the share price of what I believe to be a fundamentally excellent company that is winning good contracts, because of a perceived lack of confidence of one person ... especially when that person maintains an involvement at board level going forward.
So my belief that it wouldn't be too much longer before the director delivered on his promise to buy the shares back was my rationale for buying the shares, and I have to admit to being pleased when I saw someone buying 200,000 shares at 4.25pm on Friday afternoon.
Could this be the aforementioned director buying his shares back? .... even if it isn't, someone out there is showing quite a lot of confidence in the company.
Vanco share price data is direct from the London Stock Exchange