Vanco Share Discussion Threads

[nabeel4975] 20/4/2007 13:56

It is not only Simon, the Telegraph reported their accounting (mis)practice! In the absence of a clarification statement from the company, the stock may drift further...

If they have applied IFRS, then why not issue a statement - unless they are not telling the truth!

[jaydeee] 20/4/2007 11:11

would be nice to know which broker lied to you.

depreciation policy- The statement says very clearly that Vanco have applied consistent accounting policies to a year ago. This applies to depreciation too.

share scheme- I asked the FD about this, after Simon Cawkwell also mentioned something funny was going on here. This year, the charge is £1.3m whereas in the year to 31/1/06, it was £2.6m. If anyone bothered to read the 31/1/06 prelim, they estimated the 31/1/07 charge for the ESOP would be £1.2m, so they were not far out. I am assured they have applied IFRS accounting policies to the letter (as they also did with ERP system).

[trader1004] 20/4/2007 11:04

I'm in with simon on this one now. Spoke to one of the brokers. They manipulate their accounts for the sake of showing better results. Depreciation policy has changed to massage the profits and they reduced the charge on the share option scheme by over £1m. Sell all the way. these guys are going down.

[jaydeee] 20/4/2007 10:50

woozle1 - I didn't think DRKW were negative. They have a new analyst who replaced Liao, and he has a price target of £5.95. The sells from Dresdner are not their for own account - they are just making a market in the stock. I think we will all have to be patient and wait for the road to recovery. It's definitely been over done, but when they announce some additional contracts announcement and when the company is cash flow positive all the doubters will have be proved wrong and the stock will have a nice run.

[woozle1] 20/4/2007 08:59

caram

do u know why Dresdner are negative on the stock?

W

[caram] 19/4/2007 21:14

It is a difficult call, the company is growing and using increased revs to fund growth so dont expect a great looking BS. A couple of Simon's points are worth exploring but ultimately he has got it badly wrong if the co keeps growing at current rate. Big sell from Dresdner -which is a worry since Liao was bullish on VAN but strangely no longer covers the stock- today and the GS analyst (who is the top rated in the sector) reduced from BUY to Neutral but still has a 495p target. Overall think this is overdone and patience will see 550 before 350.

[jaydeee] 19/4/2007 16:34

lookbecksy - who was the contract with?

[td73] 19/4/2007 16:09

Tommy, great call on the US crash today!

[sarahbudd] 19/4/2007 15:50

I got in for 4.06 on a T20 - no brainer IMHO

[woozle1] 19/4/2007 14:56

Simon Cawkwell raises a very interesting question about this company that has always puzzled me. How do you value a company that generates no free cash? It strikes me that either the company has poor credit terms or is effectively using using working capital to buy revenues. In the dotcom boom, telcos bought revenues by laying pipes into building and as a result generated no cashflows. In Vanco's case, the company is using working capital to buy revenues, which is not a bad thing if the company generates a good return. So far, the jury is out.

W

[tommy25] 19/4/2007 13:36

usa market is gonna crash today, so why bother to buy this, which is trading on a pe of 28, makes no sense. will buy at £3.50

[barius] 19/4/2007 13:20

Does seem to have leveled out, i'm having another 4000

[td73] 19/4/2007 12:55

2 big buys of 50,000 each at 408 just gone through

[td73] 19/4/2007 12:54

This looks to have stabilised at just above £4, some big orders on level2 at 400p, which should help support the price so i'm in for 2000 408p

[uncle fester] 19/4/2007 12:42

Percentage of stock on loan can be found on the Financials page - look for Crest data.
Says VAN has 7.58% on loan as of 16/04/07.

[barius] 19/4/2007 12:39

Apart fron the 'neutral' recommendation, IMHO, Vanco looks pretty useful judging by the last set of results. I'm in @ £4.08.

[jaydeee] 19/4/2007 12:27

Holts -
1. suggests that accounting method for ERP system is agressive - as i mentioned above
2. goes on about free cash flow and suggests that the model is flawed since not all recognised revenue in the period is collected up front
3. says hat if there is a slowdown in customer growth, revenue growth will slow down faster. duh!!! of course it will. The point with Vanco is that even if there is a slowdown in customer growth, since they have contractual revenue already from previous years, revenue should not drop and will stay steady.
His point about traders shorting the stock is fair enough.

Does anyone know how to find out how much stock in out on loan? And can I restrict my broker from lending out the stock that I own?

[holts] 19/4/2007 12:22

but in fairness , it was taken out some time ago and Van continued to rise.

[eire voyager] 19/4/2007 12:13

If you have enough people listening to him, together they could short almost anything and win

[danski] 19/4/2007 12:10

looks like mr cawkwell has done himself proud here...

[holts] 19/4/2007 12:02

what points in the article are 'nonsense' Jaydee ?

[redhill] 19/4/2007 11:50

Buy recommendation in the Times today!