Velosi Share Discussion Threads

[foodcritic] 27/1/2010 16:58

Must be due a TS soon, 10th Feb last year.

[stegrego] 08/1/2010 23:41

Evaluate,

Neither and both.

Well, i dont think charts can apply much to small cap illiquid stocks, put it that way. I think the shareprice controls the chart and not vice versa.

[oregano] 08/1/2010 15:59

I am told an institution who has been actively selling in the market for 2 months has finished. should hopefully take the lid off the share price.

[evaluate] 08/1/2010 12:35

Stegrego,

Are you saying that because you think that charting is bunk or because you believe in charting but don't see a reverse head & shoulders?

[marvelman] 08/1/2010 12:20

Profit taking yesterday going into panic when traders thought they would loose their gains but there is surely something behind this other than people suddenly "discovering" it.

[stegrego] 08/1/2010 12:19

Looks like a line with uppy downy bits to me.

[evaluate] 08/1/2010 12:13

Reversed initial dip this morning.

Anybody else think this looks like a reverse head & shoulders?

[evaluate] 07/1/2010 17:37

Koolio,

Tbh I've made the same decision on HMS. I'm hanging on until they pay me out. Can't bear the idea of handing over a pretty much guaranteed 3% for a month wait.

My investment in Velosi has come from investment I've 'brought forward' if you like.

Velosi seems a great bet though - at anything under double today's price.

Very much a picks & shovels stock - so great exposure to oil without the inherent risks of exploration.

Scope for a long, long rise I think.

[glasshalfull] 07/1/2010 17:07

Agree Evaluate. I posted as much previously on the thread and didn't feel inclined to do regurgitate.

I've been steadily adding in the low 80's and it looks like that particular tap may have turned off now (sorry Koolio).

You may be interested in David Holding's recent take. Usually provides very sound analysis worthy of research.



16 December 2009

This star performer has taken a breather. Does this offer an opportunity?
When I last wrote about Velosi (LSE: VELO) in April, the shares were languishing with so many others. They stood at 42p and looked like a buy on all parameters. In fact, they'd been even lower just a couple of weeks before then, reaching their nadir of 35.5p in late March.
Since the Spring, the company's shares have benefitted from a combination of the overall market rally and from good news specific to the company. And it's this specific news long-term investors are more interested in than the relatively short term vagaries of the market -- though the latter had presented a nice opportunity.
To put my cards on the table here, I sold the few shares I'd bought in March in September. Funnily enough, this wasn't because I thought the true value had been "outed" in any real way -- despite them more than doubling -- but because I thought there was even better value elsewhere.
Time to get back in?
Today, back at 84p, the shares looking very tempting again. This is mainly due to a combination of balance sheet strength and the prospect of increased earnings. There's a bit of a danger here though. Velosi is an oil services company, and such companies often display value characteristics placing them at a discount to their wider market peers. But that didn't stop the shares going over 150p a couple of years ago.
The company provides quality assurance and quality control services to some of the world's biggest oil and gas companies, including BP (LSE: BP), Royal Dutch Shell (LSE: RDSB), ExxonMobil and Chevron, ensuring that the equipment these companies use works properly and is safe.
Velosi has offices in the USA, the UK, Malaysia and the UAE and has operational or representative offices in a further 27 countries to support its aim of removing the problems faced by oil giants as they try to control operations remotely, in unfamiliar territories. It also researches sub-contractors looking at health and safety and testing equipment.
All good news
Back in early April when I wrote about Velosi, the final results were less than three weeks away and investors were understandably nervous due to the gloomy economic backdrop and relatively low oil price which was putting a dampener on the whole sector. Fortunately for those of us holding shares, the final results for 2008 really were excellent.
They revealed turnover up by 56% to $182.1m, pre-tax profit up by 30% to $14.9m, earnings per share (EPS) of $0.22, cash of $17.8m and almost non-existent gearing of 1%. The company was confident about its prospects for the remainder of the year and was experiencing "unremitting demand" for its services.
Value
Little wonder then, that the share price began its steep ascent. Then the interim results to the end of June this year confirmed the company's progress, showing pre-tax profit up 10% to $7.9m, on revenue of $89.2m, EPS up 8.4% to $0.11 and cash of $20.1m. This performance lifted the shares to a year's high of 118p. 
Since then, the shares have taken a breather, perhaps on a little profit-taking, some small cap market malaise and the fact that the company was a little cautious about the outlook, viewing the oil price climb more as a function of decreased supply than increased demand.
Consequently, it views the market as "challenging". From an investment point of view, though, the directors come across as a refreshingly "feet-on-the-ground" bunch. Other companies would be far more bullish -- albeit misplaced.
The company's potential hasn't been lost on the Fool's discussion boards, where Velosi's value was recently explored.
At current exchange rates, the company has cash of £12.3m, and net tangible assets of £37m, yet its market capitalisation is less than £40m. Meanwhile, its broker is expecting EPS of 13.4p this year, rising to 14.4p next year, placing the shares are on a forward price-to-earnings ratio of 5.8. 
Strip out the cash, and this falls to less than four against enterprise value. This is plainly too cheap for a growing company experiencing such demand for its services.

[bookbroker] 07/1/2010 16:54

This stock has a strange habit of re-tracing any gain, so you may get your wish Koolio, been holding too long myself, time to get out, not that keen on holding stocks where so few investors outside of co., very little institutional interest and very tightly held by management.

[evaluate] 07/1/2010 15:25

Koolio,

I bought more today.

Prolly not worth waiting for the HMS money to come in if you don't have to.

This feels like it might be about to go on a little jog.

FWIW I bought a few more today - half way through the rise.

[koolio] 07/1/2010 15:22

Somewhat gutted that this has risen.
I have a few but nowhere near as many as I plan to have when the HMS money comes in. So for me it needs to drop back to 80p a share for one day only 26/01/2010.
Good luck to all holders.

[evaluate] 07/1/2010 13:27

GHF,

Not only substantial net cash, it has net tangible assets pretty much equal to the entire valuatipon of the company.

One of the best risk / reward plays in the whole markey IMV.

I also hold Velti BTW - another potential multi-bagger - though without Velosi's downside protection,

[glasshalfull] 07/1/2010 13:24

Nice to see the Velosi share price gaining some momentum.
I was fortunate with the shareprice of Velti ticking up substantially yesterday.

With the tickers of VEL and VELO doing the biz does anyone have any more tickers beginning with VEL? Could be a new investment stategy for 2010 :-)

Velosi remains undervalued on a PER of 7 with substantial net cash.

Regards,
GHF

[bookbroker] 07/1/2010 12:09

Don't hold your breath, been in this one for some time now, best to have no expectations.

[insideryou] 07/1/2010 12:00

Popped big time this am.. Undervalued and moves quickly as you know. Maybe Robbi Burns has been buying again, or a good chance of a potential suitor running the slide rule over these again..

[evaluate] 07/1/2010 11:42

Wish I'd put all my HMS winnings into Velosi now.

Beginning to look very promising.

[evaluate] 07/1/2010 11:21

Haven't heard any.

Though something is causing someone to buy.

[foodcritic] 07/1/2010 11:05

I've been waiting for this one to move for what seems like ages, any news?

[marvelman] 21/12/2009 16:58

Red Hot Penny Shares...they are a mag...they just have a "virtual" position..no more than that.

[marvelman] 18/12/2009 09:13

Thanks Steg...hard to believe that the traders version of the Sun can have such an influence on the share price of this company...the world has gone mad. They have held it for 2 1/2 years and failed to see the top and recommend selling at the bottom..superb.

[taylor20] 18/12/2009 09:11

Done nothing for them I guess, but more astute investors (i.e. lucky) could have made or lost (for the unlucky ones) a packet!

[stegrego] 18/12/2009 09:07

RHPS gave out a SELL last night so thats why its down today.

The only reason for their recommendation was that they have held it 2 1/2 years and its done nothing. They are just making space for new stuff.