Velocity Composites Share Discussion Threads

[rafieh] 19/10/2009 17:48

215p is my immediate target, i.e within a week or so.

[glasshalfull] 19/10/2009 15:39

Smashing move.
Still think this and RGO (2 Ergo) will be major beneficiaries of smartphone revolution.

Regards,
GHF

[donkyman] 19/10/2009 15:37

This looks good !!

[fr4dge] 19/10/2009 15:31

Looks like I might be right!

[fr4dge] 19/10/2009 14:51

Glad I broker my duck on this one this morning.

Can't help feeling that rises might be fairly rapid from here.

[nurdin] 19/10/2009 09:58

Buyers have been coming last few sessions which bodes well for the short term outlook.Hope to see 175p soon...

£2 would be nice rafieh....:o)

[rafieh] 16/10/2009 22:03

Has begun its final assult on £2.

[stegrego] 02/10/2009 22:37

Hmm the placing maybe explains the lack of share price progress since the very good results.

I really dont like it when companies issue shares 'to meet institutional demand' as it means they dont need to come to market and push up the price to buy in.

Having said that more money at a 4% discount is pretty good going.

[glasshalfull] 02/10/2009 15:42

Couple of announcements today.

Nice to see a CFO being appointed. Decent track record.

Also a placing at 160p raising £2.9m.

With the company intimating "strong focus on cashflow" during recent results then these do look undervalued given growth in smartphones and mobile advertsing.

Dipped my toe in and reckon these and RGO will be decent plays in the coming months and years.

Regards,
GHF

[nurdin] 16/9/2009 09:04

A tick up...Halleluja ...:o)

[rafieh] 15/9/2009 17:25

I find it amazing how a share like this can be ignored by the investors. Hopefully we will see a late reaction to the results over the next few days.

[stegrego] 15/9/2009 12:41

Velti

Our view: Buy

Share price: 165.25p (+0.75p)

You know those irritating adverts that flash up on your mobile phone? Velti, the marketing group, believes it has the nous and systems to provide potential advertisers an outlet without annoying the average punter.

The group, listed on Aim, was founded in 2001 and now has 400 employees. It was in the first wave of mobile advertising companies to deliver marketing and technology for companies including mobile operators Vodafone and Orange, ad agencies, and brands including Coca Cola and Honda. It provides the technology and services so that business can market over mobile phones via text, WAP, the web and mobile television.

The group has performed solidly throughout the downturn, and yesterday's first-half results saw a 36 per cent jump in sales to €22m. Net debt stands at €7.6m, in line with expectations. The biggest black cloud on the horizon is related to this year's acquisition of Ad Infuse, which could lose €2m this year.

However, it has a solid client list of big names and should get more, with advertisers keen to find new ways of exploiting mobiles. With a 2010 price-to-earnings ratio of almost six times, this looks like good value. Buy.

[troc1958] 15/9/2009 10:50

Extract from Barclays website today:-
"Velti was in the first wave of mobile advertising companies to deliver marketing and technology for companies including mobile operators Vodafone and Orange, ad agencies, and brands including Coca Cola and Honda. With advertisers keen to find new ways of exploiting mobiles and a 2010 price-to-earnings ratio of almost six times, this looks like good value. Buy says the Independent".

I am surprised Velti share price did not move significantly after its excellent results yesterday. Maybe investors are still concerned about the growth of "Mobile Marketing" or firms related to mobile services. Some of you may recall the demise of "Monstermob", a mobile phone ringtone / games seller trading in China - totally reliant on subscriptions from mobile phone owners. Many investors were "burned" by this share, including myself!

Velti however is focussed on a totally different and diversified revenue stream, which is much lower risk.

[nurdin] 15/9/2009 07:51

Who are HB?

Latest brokers forecasts are for earnings of 22 cents which puts the shares on a PE of 8x for the current year....way too low

[stegrego] 14/9/2009 22:16

HB

Velti (VEL, 166p, £59.28m) Interim results from mobile marketing and advertising solutions company saw revenues of €21.65m (€15.92m) with pre-tax profits of €2.26m (€1.24m) and .€0.08 (€0.055) EPS. The group has seen strong growth on the back of its performance based solutions and its position as the sole end-to end mobile marketing solution provided as a Software as a Service (SaaS). The group believes its exposure to China, India, the US and other major economies will see increasing benefits in the second half of 2009 and into 2010. The group has a major product developed and ready for launch in October. Following the acquisition of Ad Infuse in May 2009 the group ended the period with net debt of €7.6m, well within the existing facilities, and a NAV of €42m. With no publicly available forecasts, the confident statement draws a cautious forecast towards €0.18 EPS - putting the group on a prospective PER of just 10.5x, too low given the exposure to mobile marketing and some of the "Tiger" economies for the post recession period. BUY to the 15x PER – a target price of 237p.

[nurdin] 14/9/2009 08:37

Suspect there is an overhang ...should clear soon imo

[stegrego] 14/9/2009 08:35

Lots of supposed sells going through at just below mid - im guessing they are buys. Very suprised at the lack of positive action here.

[nurdin] 14/9/2009 08:14

I am hoping so Steg....operating in what appears to be an exploding market with China and India leading the charge :o)

[stegrego] 14/9/2009 08:08

Very good results here and they seem to realise that cash flow is important going forward. Bad day to release maybe as markets opening poorly, but surely plenty to come here?

[rafieh] 14/9/2009 08:07

This company must be off the city boys' radar. Phenomenal growth and single digit p/e! This is the type of share that private investors should tuck away.

[nurdin] 14/9/2009 07:30

Last year, H2 earnings were 2.6x times higher than H1.If they achieve the same ratio this year, then full year earnings should be close to 29c,beating brokers estimate of 24c by some distance !!!

[nurdin] 14/9/2009 07:19

Excellent set of results:

[glasshalfull] 08/9/2009 19:05

You're never far away from stocks on my watchlist Steg :-)

Fantastic growth already demonstrated with expectations for more of the same. On a cheap rating to boot.
Having missed the spike up in April I'm watching from the sidelines as despite the apparent value I've a large question mark over the cashflow. Growing pains perhaps but I'm also slightly concerned at the company issuing equity in lieu of fees and happy to watch from the sidelines.
Probably over cautious, but there you go.



To provide funding for Ad Infuse and general financing for the future, Velti has secured two new medium term facilities totaling approximately €10 million. The facilities are being provided by a special purpose vehicle backed by a group of institutional investors. The company has issued 875,000 new shares of 5p each to the group in lieu of arrangement fee. Application has been made for these shares to be admitted to trading on AIM, which is expected to occur on or about Friday 3 July 2009.

Best of luck.
GHF

[stegrego] 08/9/2009 18:43

Well its a few days till results yet, so wait and see...