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Real-Time news about Virotec Intl (London Stock Exchange): 0 recent articles
|sambuca: Am I getting my sums wrong I hold 30,000 VTI which at the proposed swap rate of 3.75 for 1 HYR equates to 8000 HYR, at todays bid of 53.5p this is equal to 14.26 per VTI share. As HYR are offering 13p per share I was considering selling VTI at 13.5 and buying HYR but if my sums are correct I am better off just letting the the swap go through.
|distill: Do I take it that Hydrodec would now have to pay more for VTI seeing as the share price is now above 12p or has the deal been done!|
|pmorrell: It looks like the VTI share price is now a derivative of the Hydrodec price.
I personally can't wait for HYR to take the company over. After frustratingly held 20000 of these for about four years while they have had technologies that can help produce potable water for an increasingly thirsty world but made virtually no progress it must be time for a change|
|antreg: The share price tells the story.|
|alan russell: How frustrating. Mostly when the share price of blue-sky companies I have fancied fall badly I bail out. Sometimes I hold if there seems a reasonable chance of things working out - and maybe buy some more on the way back up. So to hold VTI through the long, long slide just to be taken over as it starts to look up would be an annoyance. The recent HYR sale said to have raised sufficient funds to complete commercialisation, HYR improving, share price improving, now news of a material contract... patience looks as if it will not bring a reward. I hope no takeover comes to pass.|
|vitamal: seems exraordinary to me that there has been no official comment on the Virotec test apart from the odd vitriolic remarks made prior to the MWH report. I am sure the truckers are licking their lips! The poll is a complete waste of time as no alternative proposals have been put before the people, so they are just voting on removal of the rocks or leaving the rocks in place. The whole thing seems like a bureaucratic shambles which ofcourse is sad from Virotecs point of view.
On a brighter note it seems like Hydrodec might be providing good support to VTI share price soon.|
|code warrior: Alan,
Thxs for posting up VTI's RNS (2240 above). Most helpful. The company's position and outlook is clear and, in the circumstances, I believe constructive.
Fwiw, below is a copy of an email from my wife addressed to Angus Craig (Company secretary) at VTI and Bruno Bamonte's (Chief financial officer) response from VTI. Those exchanges refer specifically to point numbered 3 in the RNS - re: first reason given by VTI for the move in the share price...delisting from ASX, loss of dual listing status and impact on share price.
The purpose in sharing these exchanges here is to provide a "take" which, of course, is not necessarily correct but, nonetheless, may be useful to others with an interest in VTI.
For clarity, I and my family remain completely "flat" on VTI. My last technical post on VTI (when the price was circa 33pps on the way up to 40pps) may be found at the link below, dated 26 July 2005:
.........."3.It is too early to say yet (see 1 above) what, if any, retracement will be experienced by this market. Personally, I continue to believe that a lot of overhead supply remains to come into this market from 30pps upwards. I expect the price to retrace at some point (again see 1 above) and imv of it to probably pierce through 30pps back into the old trading range. That is in the nature of this volatile stock. Participants in such stocks almost always exhibit extremes of emotional greed and fear. Ergo, I expect big drawdowns in the price of VTI to continue, as before;.."
Here are the exchanges of correspondence:
--->Fron Mrs TomL to VTI:
Sent: Friday, 21 October 2005 9:16 PM
To: [email protected]
Subject: VTI - Proposed Removal Of Dual Listing Status
Dear Mr Craig,
I refer to your Company's announcement today on the proposed withdrawal
of VTI from the Official List of the ASX, to be tabled at the Company's
AGM in November 2005.
Are you aware of the UK tax and AIM liquidity implications for lines in
VTI stock transacted through the AIM market?
For example, as a UK shareholder, I am able to hold VTI stock in a 100%
tax exempt Individual Savings Account (ISA). ISAs' have been around for
approximately six years. For a moderately successful UK investor that
means lines of between 50-250,000 shares in VTI stock can be comfortably
held in an ISA.
The UK tax exemption arises solely on account of the dual listing status
of the same class of shares on a recognised Stock Exchange other than
the AIM. The ASX is a recognised Stock Exchange by the UK Inland
Revenue. Hence why VTI qualifies in the UK under that tax exemption.
Only some 10% of all AIM listed stocks qualify under that exemption.
If the ASX listing is removed, then the UK Inland Revenue will require
lines in VTI stock that are held in an ISA to be transferred out and/or
sold. The additional liquidity and related commercial implications,
discussed below, would most likely compel investors like myself to
reduce continued holdings in VTI by at least 50%.
I believe the UK tax exemption that VTI AIM listed shares currently
enjoy by virtue of its dual listing status holds obvious and important
attractions not only to UK investors but also to VTI for the significant
liquidity offered in lines of VTI stock purchased and sold through the
For what it is worth in my case, the tax exemption enabled me to
identify your stock, investigate its merits and its liquidity gave me
the confidence to invest much more than I would otherwise.
I also believe there are compelling commercial reasons for VTI not to do
away with its dual listing status which I outline below.
It is notable that many of the most liquid stocks on AIM enjoy
international dual listing status whereas the many most illiquid AIM
stocks do not. I am confident that the Market Makers for AIM stocks are
also aware of this from the volume and related statistics that they
transact across the board throughout the year. The terms and number of
Market Makers keen to run a book in dual listed AIM stocks is bound to
be affected by those factors, given the relatively greater activity that
is experienced in lines of such stocks.
The loss of dual listing status will probably mean fewer Market Makers
will make a market in VTI stock and the remainder in reduced size at the
"touch price" - namely, the minimum size at which a Market Maker is
bound to deal at his quoted price.
If VTI proceeds to do away with its dual listing status, I believe all
UK Market Makers in VTI will deal at the touch in lines of 15,000 shares
or less than the current 25,000 shares. In those circumstances, that
represents a 40% drop in the aggregate size that an investor will likely
The rule of thumb is that an investor should never acquire lines greater
in aggregate than 6 times the normal size at which market makers will
usually deal in a stock. Obviously, every investor must be mindful of
the ability to readily dispose of lines in a stock as well as purchase
For VTI, that is approximately an aggregate line of 150,000 shares with
the present UK ISA tax exemption. Without the tax exemption and applying
the above rule, that is likely to drop to at least 90,000 shares -
probably much lower with less market participation, less liquidity and a
not very practical alternative tax relief regime (see BATR below).
I am sure your advisers will point out that Business Assets Taper Relief
(BATR) is available to all stocks listed on the AIM. As a matter of
practice, however, few AIM investors are able to avail of it. The relief
requires an AIM investor to hold the stock continuously for not less
than 12 calendar months at which point Capital Gains Tax
(CGT) of 20% applies (a 50% discount). If an AIM stock is held
continuously for 24 calendar months or more, then CGT at 10% applies (a
As you probably know, AIM stocks are notoriously volatile. VTI is no
exception. That is why BATR does not work in practice. Obviously, it
does not make compelling investment sense to run a loss and cut a profit
simply to qualify for BATR. That is precisely why it is not a
practicable relief compared to ISAs' which confer 100% tax exemption in
any event. Clearly, ISA status will go with any loss of VTI's dual
I believe all the above points that I have drawn to your attention are
strongly indicative of the loss in liquidity and loss of interest that
VTI will experience with its AIM listing if the proposed ASX listing is
Whilst I recognise your Company's reasons for proposing to do away with
its ASX listing, being cost and low volume activity on the ASX, is it
possible for the proposal to be deferred until an alternative qualifying
dual listing is secured (eg NASDAQ)?
I look forward to your reply and thank you in advance for your attention
to the above matter.
--->From VTI to Mrs TomL:
From: Bruno Bamonte
To: L.. @gmail.com
Date: 08-Nov-2005 07:27
Subject: RE: RE: VTI - Proposed Removal Of Dual Listing Status
Dear Ms. L..,
Thank you for your email of the 21st October regarding our recent
notification to shareholders that we are seeking to de-list from the
Australian Stock Exchange and remain solely listed on the AIM market in
Firstly I apologise for the delay in responding to you. Angus Craig who
normally handles these enquiries is currently on holidays so I have
taken the liberty of responding on his behalf. As you can imagine this
issue has generated a lot of queries, mainly from our Australian
All of your points are well made and I do not disagree with any of them
The company took the decision to list on AIM in July 2001 as the start
of the move into the Northern hemisphere, both in terms of corporate
presence as well as product development. This was with the clear
understanding that the biggest markets for the products that the company
is commercialising are no doubt going to be in the Northern Hemisphere
developed markets. This was the start of a gradual move to this area
that is a logical one for a Company like Virotec. Hence the decision not
to retain the services of a broker in the Australian market, only in the
UK, as well as the obvious cost savings of not running two brokers.
As the success of the move to the UK has increased so has the hindrance
of being dual listed. The problems relate not simply to liquidity and
cost but also shareholder management. The Australian quote has traded at
a discount to the UK quote now for many months and this is due partly to
liquidity but also to the different way in which the stock trades in the
different markets. AIM is still quote driven and thus does not undergo
the levels of volatility in low volume situations that an order driven
system does, such as the ASX and the NASDAQ exchanges. The broker has
also commented many times that not knowing what the Australian
shareholder sentiment / feeling is and therefore their market behaviour
at any given point makes their job quite a lot more complex than it
should be in these situations.
Apart from the issues covered both in your email and above I am not sure
that the experience of being dual listed and still being a relatively
small company is one that makes sense for a company of Virotec's size
and resources. A dual listing in the US would gain a higher profile in
that market no doubt but it would bring with it another broker burden in
cost and management time and also re-introduce the price difference
issue between the markets again. Something which in itself can increase
volatility in a stock where that may be an issue already. To make a
secondary quote a serious one with the company in its current form would
require at least the employment of another internal employee, a US
broker and the issuance of enormous amounts of stock to ensure that
there was not a liquidity issue in the American market. Something that
if not addressed would make the quote in the US a hindrance again rather
than a positive. None of these things are the right one for the company
at the current time, or focus is on rapid commercialisation of our
product lines across our regional offices therefore more sales or
technical support people would be employed before any more IR people.
Further dilution of the stock is also not something the company is
considering, and that will be the case for a good while yet no doubt.
The Company is sympathetic to your argument and position, and understand
that there are number of UK investors who will find themselves in the
same situation as yourself. However as the company grows in size its
corporate needs change and the decision to return to being solely
listed, and for that to be on the AIM market in London is the right one
for the company in the board's opinion. This opinion is also strongly
shared by our nominated broker and adviser in the UK.
We sincerely regret any inconvenience that this may cause you and we
wish you all the best in managing the situation you have with your
personal investments and hope that you have many more successful years
as a Virotec shareholder.
Chief Financial Officer
Virotec International Limited
|alanrussell: TomL, I see your rationale and certainly VTI share price has been subject to considerable falls from time to time off strong rises. However I suspect it may prove to be different this time. I may be an old cynic (alright then I am an old cynic) but from time to time in the stockmarket a particular sequence of events can be seen. Placing at minimal discount - directors buy or take options - article in the press - short delay - positive annoucement. Everyone is happy, institutions, shareholders and directors. OK, I have no reason to believe that this is the case with VTI and often the timing of announcements is outside a company's control and one should never believe what you read in the press but it's not outside the realm of possibilities is it?
Time will tell and even if there is an announcement shortly it proves nothing. Goodness knows I am on record on this thread as repeatedly pointing out that things take longer than expected and to pour cold water on those excitedly anticipating news, but maybe this occasion will prove to be "sooner rather than later" for once.|
|pkw: alan - the placing will imo prove to be very soundly backed up by newsflow and a VTI share price that will be considerably higher. All the indications are that VTI is building a very substantial order and inquiry book.
(Repeating my post....
PKW - 8 Jul'05 - 10:30 - 1326 of 1338
One hears that water treatment is heading for pole position on news front - guess that the institutions have been "sprinkled" with info(no such thing as a level playing field!). Of course, we should all be expecting news - it has been signposted before that VTI is well positioned to get approvals which will give them intro to every water utility company in UK(& Europe probably) and indeed have every water utility company queuing at their door. Heard a mention that Severn Trent already linked into VTI - now why has that not yet been put out as an RNS????
The other water aspect which could send VTI's share price into the double your money area, and soon, is the USA electroplating market: a major JV would seem a very close possibility.
Time for NUMS to get a proper re-rating out on VTI imo - there is a considerable amount of behind the scenes work going on at VTI, not least because of the I-99 contract(which some say is growing all the time - and WILL
be all VTI's) which seemingly has brought in a flurry of US inquiries.
NUMS need to salvage their previous lax performance on VTI - target must be
a share price nearer £1 this side of Christmas.)|
|alan russell: While it is always nice to see press coverage and animated BB's, in a perverse way I find the lack of these encouraging. During the last month there have been the I-99 and South Korea contract news and VTI share price has risen 35%, yet coverage is virtually non-existent. Just a mention in the Express apparently, even the IC has failed to mention.
This thread started on 16-12-04 has 1267 posts, an average of 6.5 per day. Compared with some threads that's barely awake! However it so often seems that the really busy threads relate to shares that have serial disappointers. The more active the thread, the worse the performance is a not unreasonable rule of thumb, with some notable exceptions of course.
So the lack of coverage is OK I reckon. If this is how the price performs with minimal comment what's it going to be like when (sorry, IF) the contracts start rolling in and the price really gets moving!|
Virotec share price data is direct from the London Stock Exchange