|innovation99: I am puzzled why I find no BB site including this one discussing VTC. Have dabbled with tech stock and had my fingers burnt so decided to liquidate some of my portfolio and stop and think!!! Saw all these TV companies making headlines and thought who is the pick and shovel man !! with so many TV production companies now appearing who sells all the camera's tri-pods, mircophones etc ! Found a company called VTC who seemed to be big in this department and although listed in engineering it does have a tech outlook! My research showed a company with potential with very little downside. While profits fell last year, there was an improvement towards the end of the year which appears to have continued in 2000. VTC looked good so I brought in a £4.70
The company is trading well and showing reliable if not spectacular growth.
At the current price they stand at just 7.8 times forecast 2000 earnings with a prospective 4.2% yield.
There are some shrewd investors buying into Vitec hence the leap in share price. Mercury Alpha now owns 1.3 million shares - above 3% - after a recent purchase of 180,000 shares. Aberforth Smaller Companies Trust is also on the case, holding just over 350,00 shares. Its sister unit trust, Aberforth UK Smaller Companies Fund, holds nearly 185,000 shares.
Brokers CCF Charterhouse securities, says Vitec shares are 'ludicrously low.' They say that 'Vitec has an exceptionally strong market position, strong margins and exceptionally strong cash flow. It is a nonsense for a group with this kind of record to be trading at a valuation this low.'
However I guess one should bear in mind that market sentiment will play a big role in lifting the share price. As a small engineer, there is little chance of Vitec suddenly attracting significant interest without some noteworthy actions on the part of the management. Let hope that Phillip Cushing who joined as CEO in April after shaking up the Inchcape (INCH) motor group will play a major part in that department.
Whilst the price has risen since I brought there is plenty of upside in this share still to go and the interim results in September should see results better than expectations which in turn will push the share price even further north.
While I seem to be profiting from this company I am sure there must be others who are to - so I am bemused why no-one seems to be talking about it - or is it that tech and mining stocks with volitility are more exciting - ( from rags to riches and vise versa ) - guess you cant ramp this company share price in the same way as a tech stock but you can make money on it ( and sleep at night!!) - which I thought was the name of the game! |