Velosi Share Discussion Threads

[salpara111] 22/9/2010 14:18

just looked at these for the first time.

Have to say that they look pretty cheap by any estimate. Most of the oil services companies have p/e ratings in the mid teens.

I think I will keep an eye on these for a couple of days to see if they stabilise.

[qs9] 22/9/2010 14:17

EV/EBITDA value IMO makes this still look good value. Given other "bids" in the wider sector, someone IMO may take a look at VELO. DYOR

[kimball808] 22/9/2010 14:16

ohhh...buyers coming back

[kimball808] 22/9/2010 13:27

Digital look does...


The share price of oil rig safety consultant Velosi plunged on Tuesday after disappointing half-year results, and was plumbing the depths again on Wednesday, offering an opportunity to buy the shares at an attractive earnings multiple, FinnCap argues.

"We believe the share price has over-reacted to interim results, which pointed to margin weakness. Indeed, the analysts meeting uncovered that the group is already seeing a pick up in its higher margined specialist services so that gross margins will recover in H2 [the second half]," reports analyst David Buxton.

The broker is leaving its full-year forecasts unchanged. "Our existing forecasts still appear valid, if anything 'slightly light' according to management. This should reassure investors," Buxton asserts.

FinnCap has reiterated its "buy" recommendation and 135p price target.

[kimball808] 22/9/2010 11:51

probably, but look back to the last interims, same fall happened, but made up ground to the year end....here is to hoping that this year will be reciprocated....pls

[spot1034] 22/9/2010 09:51

Does anyone else feel this fall is overdone?

It might have been understandable if the share price had been racing away, but it hadn't. Even given the rise in the past couple of weeks, it was still modestly priced and now seems even more so, especially when you consider the cash on the balance sheet. Given the consolidation in the sector, could this company shortly find itself on someone's shopping list?

[kimball808] 21/9/2010 09:37

just means that they will have to pull their finger out for H2, which in the past has been their stronger period

They did 49% of revenue in 2009 H1, they have done 48% of expected revenue in current H1

They did 47% of FY PBT in 2009 H1, unfortunately only 40% of expected PBT in current H1. But this is due to 'reflecting increased investment in new offices and personnel and changes in business mix' which if you believe in the management should produce a return which will be evident by FY.

They did 49% of FY PAT in 2009 H1, and 47% of expected PAT in current H1

Their operating expenses have been trimmed down increased by 1.84% (2009 23.5%) they need to focus on reducing their cost of sales which have increased, and thus will improve their op prof margin.

So I'm thinking that as things hopefully get better and H2 being their better half, VELO may still come good.

PS..the PAT is calculated on VELO paying 28% corp tax..the highest tax they have paid was 23% in 2009.

[strudwick] 21/9/2010 09:29

Well at least turnover is going the right way.

[longueville] 21/9/2010 08:44

The market makers did not move their prices from last night on the back of these numebrs. It is only when the sellers appeared that the price got hit. 7x does not look expensive.

[stegrego] 21/9/2010 08:34

Cape didnt have margin squeeze or less eps....
Having said that, VELO is hardly expensive on 7x or something like that.

[evaluate] 21/9/2010 08:31

Cape Investments had similar results.

It dropped on open but ended the day up.

Could the same thing happen here?

[evaluate] 21/9/2010 08:31

Cape Investments had similar results.

It dropped on open but ended the day up.

Could the same thing happen here?

[longueville] 21/9/2010 08:30

Summary of 1H results -

LONDON (Dow Jones)--Velosi Limited (VELO.LN), the AIM quoted provider of Testing, Inspection and Certification services to major national and multinational oil and gas companies, reported Tuesday a slight decline in pretax profit for the first half, and said that since the half-year end, trading has continued to be positive.
MAIN FACTS:
-Turnover for the six months ended June 30 $94.5 million (2009: $89.2 million)
-Pretax profit $7.4 million (2009: $7.9 million)
-Diluted EPS 9.1 cents (2009: 11.0 cents)
-Net cash position of $18.4 million as at June 30.
-Board does not propose to pay an interim dividend; However, subject to the availability of distributable reserves and a satisfactory performance in the second half of the year, the Board does intend to recommend a final dividend to shareholders in respect of the financial year ending Dec. 31.
-Visibility on future revenues remains good.
-Company positioned to continue to gain market share.
-Board confident of the future prospects of the group.

[mg1982] 21/9/2010 08:16

had to make sure i was the first to sell! disappointing result regarding margins reducing. would look at it again if it went as low as 80-90p

[spot1034] 21/9/2010 08:16

Possible bid for WSM in the pipeline (no pun intended!) - could this also be the ultimate fate of VELO?

[stegrego] 21/9/2010 08:11

Not bad results, but reducing margins. Less eps = no longer growth company.

Sold as soon as i could first thing, as looked will take a tumble.

Will monitor to see if it drops to a silly price.

[kimball808] 21/9/2010 06:59

drum roll....;-)

[mg1982] 16/9/2010 14:55

looks like we will still be heading north before results are announced. can only buy 750 shares @ 121

[kimball808] 14/9/2010 20:25

bit of confusion on their web site, interims will be 20th and 21st

[koolio] 14/9/2010 17:12

It's a pleasant sign that the S/P is rising as we get closer to results.

I am looking forward to see some a positive input from India & African operations, hopefully the market share from Oman and Qatar will not drop too much, however there must be some margin pressure as competitors price more aggressively.

Good luck to all holders.

[melton john] 14/9/2010 13:04

Aah the old ascending tri nagle.

[dr_ex] 14/9/2010 12:50

i did notice there is an asecending trinagle forming on the chart. break that upside and its going into 160/170p area. purely on the technicals

[kimball808] 14/9/2010 12:44

very kind...thks...;-)

[kimball808] 14/9/2010 12:40

certainly has, SCAP only one left on offer at 117..fancy another clip of 1000