Vero Software Share Discussion Threads

[davidosh] 22/1/2009 01:03

What are the latest forecasts you have seen ?

[rainmaker] 22/1/2009 00:55

Spec-Let the Vero share price do the talking-the share price could reach 30/35p in the next month

regards

[rainmaker] 22/1/2009 00:51

I agree. Have you noticed that in the last few weeks Brokers have increased the earnings estimate for the year just finished. Hmmmm......why should they do that when the year has already finished?! They have shaved the estimate for 2010 to 3.33p(that's still less than 5 times)but there could well be a dividend and a further earning enhancing acquisition announced.Meeting Broker forecasts isn't too much of a problem when they are making annual cost savings of £500k(yes that's half a million pounds)compare that with 2007 pre-tax profits of £1.1mln!

regards

[davidosh] 22/1/2009 00:43

Vero Software Plc (AIM: VERO), a leading supplier of CAD/CAM software to the
mould and die sector, is pleased to announce that, while its revenue is expected
to be broadly in line with expectations, it expects its pre-tax profits for its
financial year ended 31 December 2007 to be comfortably ahead of market
expectations.


That was last year on the 13th February so we could get a trading update at any stage over the next few weeks.

[rainmaker] 22/1/2009 00:36

Hmm, edging up nicely

regards

[spec12] 21/1/2009 16:47

No sooner do I say that and suddenly a little flurry.

;0)

[spec12] 21/1/2009 15:03

Gone a bit quiet here rainy. Still, happy it held it's recent gain.

[rainmaker] 19/1/2009 23:51

Hi Baner- I would never rely on bid alone but if a Company is recognised as being grossly undervalued by the Investing public then there is a good chance that other Companies will notice as well

regards

[yohoho] 18/1/2009 23:28

I have no idea who you are Bhajee but to be honest I really want to. Kindly ignore my posts, crawl back under whatever rock you appeared from and take your two-bit punts with you! Your rudeness betrays your motivation........

[yohoho] 18/1/2009 22:43

i would expect to see a healthy advance on this one this week, as people recognise the quality of the management and the product of this company.

[rainmaker] 16/1/2009 00:48

Yep, its a "Growth Share" with "Value Share" characteristics. Buy the shares and you don't pay for the growth!With a divdend to come.

regards

[yohoho] 15/1/2009 22:56

Rainmaker, I have to concur. A raging buy it ever I saw one.

[rainmaker] 15/1/2009 21:15

Could somebody please put the Poster "no bleedin clue" on iii out of his misery, that yes, Vero's debt was £2.7ml at the start of 2008(due to a £2.6mln loan repayable over 5 years, for the acquisition of Camtek) but fell to £1.7mln at the end of June 2008

Many Thanks
Regards

[rainmaker] 15/1/2009 01:56

A PRICE TO EARNINGS/ GROWTH RATE MODEL, COMMONLY KNOWN AS A "PEG" APPLIED TO VERO SOFTWARE as at 31/12/08.

Raw data
Vero Software share price= 16.5p
EPS for 12 months to 31 Dec 2008 2.58p(est)(so called historic)
EPS for 12 months to 31 Dec 2009 3.33p(est)(so called future)
Percentage growth rate =3.33/2.58 x 100=28%
Prospective p/e for next twelve months=16.5/3.33=4.95*
PEG=4.95/28=0.176

A PEG under 1 is undervalued
A PEG of 1 is considered to be fairly valued
A PEG over 1 is considered to be overvalued.

CALCULATING THE INTRINSIC PRICE PEG VALUE
Adjusting the share price to a level whereby it's PEG would be 1 to obtain an intrinsic (fair)value according to this model=*adjust the prospective p/e to equal the growth rate so the prospective p/e becomes 28 then multiple this by the prospective eps=28 x 3.33=93.24p

The important thing to remember about Vero Software(VERO) is that it is a "growth" share(ie it is growing at a rate faster than the nominal growth rate in the economy!1!) but has Value characteristics (ie low price to earnings ratio, low price to sales ratio, low price to book ratio etc)so in buying the shares at current levels you are not paying for that growth.

!1!nominal growth rate in the economy is GDP + the inflation rate


DYOR etc
regards

[rainmaker] 15/1/2009 01:23

Spec-Can you suggest to the good People at iii that they ought to start logging into ADVFN?

regards

[rainmaker] 14/1/2009 13:27

Hi Spec-As you correctly state they had net debt of £2.7mln at the end of 2007 as a direct result of the Camtek aqquisition-this was repayable over five years ie approx £500mln per year. However thanks to strong cash flows net debt had been reduced to just £1.7mln at the end of June 2008.Yes, just six months later. As already stated, Camtek Office is valued at £368k.

regards

[spec12] 14/1/2009 09:44

rain ...Question for you from 3iii .....Reports a debt of 2.7 million going into 2008. Any idea what this might be now.

Quite hefty given the profit. Anyway, does anyone have a calculation of the value of Velo in their opinion.

[rainmaker] 13/1/2009 13:33

Looks really good

regards

[baner] 12/1/2009 15:18

is it not time for the unavoidable bid for Vero ? the Enterprise Value in a bid should be not less than 100% of sales - 150% is still realistic - in which case the value per share would be ca 32p. this is an exceptionally well managed company offering significant scope for synergies for a buyer offering a broader marketing organisation etc. very sound risk/reward!

[spec12] 12/1/2009 13:40

About time too I have been holding for all of about .... 3 hours.

;0)

[rainmaker] 12/1/2009 13:22

The share price is starting to motor, now 14.5/16.0p

regards

[stuckinthered] 12/1/2009 12:46

oops specsavers !

[glennborthwick] 12/1/2009 12:44

youd be a year late

[stuckinthered] 12/1/2009 12:40

Interestingly I'm just down the road...let you know this evening (12th)