Eurovestech Share Discussion Threads

[kenmitch] 17/8/2012 10:13

Jambo.

NAV isn't 6p! It's roughly 16p.

[kenmitch] 17/8/2012 09:56

This is shock bad news imo.

That NAV figure is probably conservative. e.g look at what they got for just 40% of KSS, admittedly only to already very large shareholder Investec.

Liquidity will be even worse obviously once the shares are traded only on a matched bargain basis.

It looks sure to be approved with Institutions and Richard Bernstein holding around 70% of the shares.

One hint of good news for those prepared to hold on is this bit suggesting a further return of cash both short and medium term.

"One of the main reasons for having a public listing is to provide the Company
with access to capital. However, the Company does not currently intend to raise
any further funds through the public markets and has adopted a policy on
investee company realisations to only retain sufficient cash to cover its
ongoing costs; expected future funding rounds of investee companies; and to
enable participation in new investment opportunities when deemed appropriate
and to return any surplus cash to Shareholders. The Directors expect that more
realisations will occur in the near to mid-term."

This KSS cash return will be the third time. Don't count the so called " £2.5 million returned via buybacks" that they've trumpeted today. Shareholders got nothing at all from those other than a lower share price and a higher discount to NAV. So please don't pester them for more wasteful buybacks now!

[jambo172] 17/8/2012 09:38

Typo - value of investments must be OK.
Cash is cash, Toluna's major holder is Publicis, KSS 40% sold to Invesco today.
Rest rather small but growing.
50% discount covers a lot as well.

[typo56] 17/8/2012 08:58

It may be trading at a discount to net assets but a shareholder can only realise those assets if there is demand for their shares, or the company returns the assets in the form of cash.

Delisting is surely going to deminish the market for the shares? How realistic is the fair valuation of the holdings?

[a0148009] 17/8/2012 08:42

This helps to explain the weakness of the share price and large discount - institutions would have been consulted re delisting and expectation of sales from shareholders who do not wish to be locked in an unquoted company and of course the news feed will be even more scarce than to date.

AO

[jojaken] 17/8/2012 08:42

I take your point Jambo, but delisting the shares will just make these shares fall from the watchlist of some. And there are relatively few who still people follow it, and hardly an incentive for new investors.

[jambo172] 17/8/2012 08:33

Typo - not really.
Shares are effectively trsded on matched bargain already.
However it is still to be voted on.
Good price for KSS.
Asset value 18p ish.
50% discount

[typo56] 17/8/2012 08:07

Delisting. What a disaster for holders if it goes through.

[kenmitch] 10/8/2012 16:57

Remi

I think you've got the answer in longshank's reply in post 188.

If I hadn't already got all I wanted I would add before the results due next month I think.

At such a low price downside should now be very limited. How long it takes for the share price to rise significantly depends not only on good news but also new buying in decent size on that news.

I guess Simon Thomson will update on EVT in Investors Chronicle post results. He included EVT in his group of very undervalued shares at a higher price than now, and that did bring in a few new buyers but they could well have got bored and sold again.

EVT remains a sleep easy long term lockaway imo.

[remi2059] 09/8/2012 08:19

Thanks for the replies guys - I have also been a holder for a number of years. Considering whether to increase my position given current share price weakness.

@ Kenmitch - I'm actually not too worried if EVT continues to fail to attract new investors - as long as they keep growing their businesses, selling them and returning cash!

Since there is no event/catalyst with Toluna now, what could be the next big event?

Cheers

Remi

[kenmitch] 08/8/2012 09:16

Longshanks.

With the number of shares involved, only minor liquidity issues ..... unless I'm missing something.

Hope you're right about KSS.

[longshanks] 07/8/2012 21:15

do you really think the charity share issues won't cause some liquidity issues kenmitch?

I think KSS will be another Toluna: listing followed by rapid growth - followed by trade sale.

Could be a direct trade sale instead if they can get the right price but I think KSS has only really just started demonstrating its income potential so valuations by acquirees could still be on the low side and opportunistic. A listing will allow EVT to cash in a bit now whilst gaining from the longer term upside.

[kenmitch] 07/8/2012 19:33

Remi2059

I've held EVT for years. I mostly agree with longshanks except that I don't really think that the charity shares looking for a home are behind the poor share price.

Results should be out next month. Update on Toluna could be interesting. Ditto the rest of their investee companies and especially the newer ones with so much promise. I wish they could sell KSS. A further profits increase might do the trick.

The shares look crazily cheap and might look even more so if results come with a further NAV uplift and no change in the share price. But nobody seems interested. I'm very tempted to add at such a low price and would but for wondering whether no matter however good the news EVT will continue to fail to attract investors.

[longshanks] 07/8/2012 18:43

Hi Remi2009 - I've been monitoring a while.

IMO the price direction has been driven by the stock's illiquidity coupled with a larger than normal number of "charity" shares looking for a home this year. Also there is not too much cash in the market for investment vehicles like this one and it isn't unusual to have such a significant discount to NAV. To me the price is looking ridiculously cheap - and I for one am sorely tempted to load up on these as a nice safe bet.

[remi2059] 07/8/2012 15:42

Hi all,
Share price has dropped quite a bit since the announcement in July that EVT were going to get ITWP shares rather than cash... any views on this?
I guess quite a few people bought in on the back of the Investor's Chronicle article and are now slowly selling out since the catalyst didn't emerge... Any other views out there?

Cheers

[kenmitch] 11/4/2012 10:13

Thanks tanners.

Agree with most of that. EVT seem confident about ITW progress, and can take the cash from the loan notes soon if not wanting to increase the risk.

Them amazing thing about KSS (as you probably know but some new to EVT won't) is that KSS Fuels is only one half of the original KSS bought by EVT for just £1 million a few years ago, and for that they also got the £6 million KSS cash pile! The other half, KSS Retail was sold for a big profit some time ago. So KSS is already another multi bagger. Presumably a candidate to float soon as suggested in the I/C write up?

Agree that their other investments are not easy to value, but based on their record ever since floating, EVT comment can be trusted so when they see great promise for AUDIONAMIX and MAXIFIER that confidence is likely to be justified.

The one investee company that has disappointed is MAGENTA but even here they are generating enough to fund their own growth.

It's been a slow burner for so long now that surely shareholders won't have to wait too much longer for good share price gains? And downside looks very low and if investors are daft enough to send the price even lower, then yes, well worth topping up again.

[tanners] 10/4/2012 22:46

Hi Kenmitch - good post, I'm still holding and will continue to add as bored punters who probably brought on the IC write up bail out.

It's KSS Fuels that really excites me here; I think that even the increased carrying value of 13M as per the results is conservative, and with the growth that it is achieving, it wouldn't surprise me in the medium term to see the value of KSS Fuels get close to the entire MCap of EVT.

Obviously much of the current value of EVT is tied up in ITW and therein lies some risk particularly given ITW is now a private Company and trading information is not as readily available.

The other investments are very difficult to value on the information given, but offer a bit of a shot to nothing given the currrent discounted valaution of EVT as a whole.

This is a classic slow burner, imo, and I'm quite happy to sit and wait long term, adding where I can on any weakness.

ATB

[kenmitch] 10/4/2012 21:08

As I guessed would happen, the share price has done nothing (gone down in fact) since the flurry of posts here following the Investors Chronicle article.

Recent results passed without comment as did the positive write up in Investors Chronicle.

I've posted the following on Mike Walters website.


"I posted about Eurovestech for years but then gave up because also for years the share price has done nothing despite EVT hardly putting a foot wrong. That still applies with the share price now down to 9.5p to buy and at a big discount to current NAV of 16.6p.

Until the share price starts to wake up it is probably safe to watch and wait, though I added more following Simon Thompson (Investors Chronicle Companies Editor)including EVT in his bargain shares list in February.

Eurovestech issued their results on 29th March.

ADVFN competitor.com/action/news/showArticle?id=4338323

There are so many positives and so much potential that I can't resist posting some of the details.

Before a few facts and figures let's start at the end with the important "Prospects" paragraph as that really caught the eye!

Comment there included this huge plus with markets and economic news so iffy.... "EVT is largely unaffected by different economic conditions. Our individual Companies serve specific needs, and are unaffected by gross economic measures... the markets our portfolio of companies serve in are in RUDE HEALTH (my capitals). We view the future in a fashion that is tinged with reality, but in a manner that brims with confidence."

WOW!

So what evidence is there in the results to back this up?

1. Initially not the profits, since they moved from profits of £0.6 million last time to a loss of £2.2 million this time. BUT profits are volatile and EVT explained why years ago. Companies like this are best judged on their NAV. Anyway the reason for the loss was that this time there were no disposal profits and there were exceptional charges at otherwise very successful KSS because KSS bought a close rival.

2. NAV was actually up 4% over the 6 months.

3. 4p in cash was returned in October last year to add to the 2.18p returned in 2010. They floated at 5p so have now returned more than that in cash. And some of us bought the shares as low as 1.75p.

4. TOLUNA - now ITW Acquisitions Ltd, and now a private company is still doing well for EVT. EVT originally staked £2 million. They have already banked a £40 million profit for a 20 bagger and still own 10%, and £12.2 million of loan notes. Investors Chronicle covered their results last week, concluding "BUY." I/C point out that in two months these loan notes mature, meaning Eurovestech either get £12.2 million more cash, or their stake in very successful Toluna will increase from 10 to 16%. Eurovestech say they are "confident about Toluna's continuing growth prospects."

5. Revenues from their other star company KSS Fuels rose to £7.1 million and are forecast to rise to £12.8 million to year ending in June 2012. And integrating the KSS acquisition should bring annual cost savings around £1.2 million.

Indeed KSS Fuels is thriving. KSS has won new contracts since the year end and EVBT have now increased the carrying value of KSS Fuels to £13 million from £9.5 million.

KSS is 100% owned by EVT.

EVT also have large stakes in 4 other companies.

1. AUDIONAMIX. Sound Separation Technologies. EVT owns 45.5%.

Revenues grew rapidly in 2011 but EVT say its advances are modest relative to potential. Accordingly AUDIONAMIX is targeting further substantial growth.

2. MAXIFIER. On line advertising technology solution - increased the effectiveness of adverts. EVT owns 49.9%.

Maxifier won a number of new contracts and "several significant contract wins in recent weeks."

But further funding will be needed and EVT will be joining in.

"Maxifier's success and technological strength is becoming widely recognised" EVT claim.

3. LOGNET INFORMATION SYSTEMS. Billing and ebilling solutions. EVT owns 26.5%. Promising and profitable.

4. MAGENTA. Real time dynamic software scheduling in the transportation industry. EVT owns 49.6%

Profits of £381,000 and generating enough cash to fund its growth.

According to the Investors Chronicle update, two of EVT's investments may float.. They also say that there seem to be a number of investors keen to buy in to Maxifier. And I/C comment on the recent deal between EVT and Cenkos where for £900,000 Cenkos has agreed to pay EVT a proportion of any commission earned from clients introduced by EVT. Cenkos will also provide discounted commission rates on funds raised for EVT and its investee and associated companies.

Also worth mentioning is that Richard Bernstein EVT C/E is still encouraging other Companies to follow EVT in donating shares to charities.They have recently issues another 1,100,000 to several very worthwhile charities with listing costs of £11,000 funded by Richard Bernstein, and since floating have gifted shares worth more than £2 million to over 100 charities.

So though for ages the share price has done nothing, there is plenty to suggest that before too much longer that will change. I've held the shares for years and one big plus point is that even in the worst of market falls the share price holds steady, as it does unfortunately when many other shares are going up!BUT this is a share that won't give any sleepless nights and that has a lot of upside potential in time."

[a0148009] 21/2/2012 08:27

Take a look at the client base on the slide show link of KSS Fuels.



AO

[kenmitch] 12/2/2012 19:18

Good point. It's just that I would prefer a cash return to a buyback. But far better to invest it than either.

[sbs] 10/2/2012 20:40

kenmitch - some of us get stung for CGT every year though!

[kenmitch] 10/2/2012 20:05

I've never seen so many posts on EVT. Plenty of trades too today. I agree it will be interesting to see what happens to the share price once "the IC tip goes cold" and if the share price does drift back how many who bought today will lose patience and sell?

I'm not bothered about the share price short term. EVT is a great little company with very good Management and an excellent record. Proven success with KSS bought for £1 million, but they also got their £6 million cash pile.An extraordinary bargain hated by KSS shareholders at the time few of them having the sense to drown their sorrows by buying EVT then at less than 2p!! KSS was heavily loss making when they bought it, but was soon turned round. KSS Retail sold a while ago at a very good price and KSS Fuels doing really well with latest evidence of that in an RNS on Monday. Toluna - already a multi bagger - is the icing on top. Newcomers might not know that they paid £2 million for Toluna, then brought it to the market at 73p or so a share, and it went private at over £2. Since then is explained in the IC article.

One magazine article and resultant buying has done far more for the share price than earlier buybacks. I would much rather see spare cash invested - and KSS and Toluna are two clear examples where shrewd investments pay off far more than buybacks can - or returned to shareholders in cash again. The recent big drop on the chart was the last 4p or so handout. At least with getting cash back we can immediately reinvest it in the shares and we can't if they buyback.

[sbs] 10/2/2012 17:48

Hyper Al - things don't usually go up in a straight line though. It'll be interesting to see what happens here after the IC tip goes cold.