Velosi Share Discussion Threads

[darola] 01/6/2010 20:39

I reckon BP have strengthened VELO no end.....

[darola] 28/5/2010 08:24

Glad to see we are slowly ticking back up - fall was well over done.

Just incase anybody needs a reminder of the potential here:

[darola] 25/5/2010 10:30

Thats an old article (6 weeks is old in the current market!) - but the reasons stated do however remain.

Unfortunatley we have been hit by the current market sentiment - looks like early 2009 all over again!

This must be worth a bid - so cheap!

[kimball808] 30/4/2010 20:58

Small article in Shares mag saying the BP incident highlights VELO's importance re safety in the industry. With a BUY recommendation

[5070481] 30/4/2010 17:27

Anyone else wonder if demand for Velosi's services is going to rise after this BP disaster?

[dsmith4] 27/4/2010 08:33

Varies

I remember the press release - I think the contract they won meant they would get a share of the $900m, not all the $900m. But certainly an important contract.

[varies] 23/4/2010 12:13

i take a benign view of VELO since I am in profit but I accept that this approach is rather naive.
My attention was drawn to VELO by the big Escom contract announced a year ago and I am glad to see a reference to this (under "Europe")in the Operational Review.
The Escom contract is expected to involve expenditure of $30 billion over 5 years with inspection fees in the region of 3%.say $900 million. This contract was won by Velosi Europe with Khum MK Investments (a Black Empowerment Company ???).
Adding $90 million p.a. to VELO's top-line ($900m divided by 2 and then by 5)should do some good. I wonder what profit margin one might expect.

[stegrego] 23/4/2010 11:50

Looking at the price today, i will keep my mouth shut in the future, so as to not tempt fate!

[darola] 23/4/2010 06:25

Do you have the link? TIA

[stegrego] 22/4/2010 18:11

It cant be going up or on a breakout as Bookbroker says its going down.

[darola] 22/4/2010 17:18

Great day...... over due and oh yes....... BREAKOUT!

[stegrego] 16/4/2010 18:38

GCI

Velosi sees strong second half

Oil and gas operation quality control specialist Velosi sees a second-half acceleration in demand after lifting 2009's pre-tax profits 12.8 per cent to $16.8 million (£10.9 million).

The AIM-quoted company, which provides testing, inspection and certification services to major oil and gas companies around the world, weathered a challenging year with turnover marginally ahead at $183.6 million and a five-year forward order book up 14.3 per cent to £400 million.

Steered by chief executive and substantial shareholder Dr Nabil Jalil, London-based Velosi ended the year with $20.1 million cash and is scouting for expansion and local acquisitions after upping earnings nearly 14 per cent to 14.5p and proposing a 50 per cent final dividend hike to 1p.

Jalil and his colleagues stress that the company has done this without any contribution from Nigeria, which contributed $30 million to turnover in 2007 but fell away after the murder of Velosi's local partner and subsequent lawsuit with his widow. This has been settled, releasing $4.5 million from liabilities, and the company is rebuilding there, with an order from Shell Nigeria in the bag, and sees encouraging prospects in Angola.

Project revenues fell 4.1 per cent in 2009, but maintenance business rose 4.7 per cent and certification, smaller but with higher margins and involving no liability, rose 35 per cent. The Middle East generated 16 per cent turnover growth to almost $73 million and Velosi says 2010 should be 'as good or better'.

The company has opened a new office in Poland, is doing the same in Kazakhstan, where its partner is the president's son-in-law, and is contemplating acquisitions in France, Norway and Turkey. Velosi is beefing up its effort to win business in the recently depressed US market and in Canada.

Floated at 90p four years ago and first backed here at 66.5p, the shares now stand at 108.5p and could make further progress yet. Top up your holdings.

[darola] 16/4/2010 16:19

Normal service is resumed, onwards and upwards.... now the pre-result sellers have taken their profits..

[darola] 14/4/2010 15:07

The MMs are struggling to hold it down - looking at the volume no sell off has kicked in. Obviously investors on board!!

[blueflex2] 14/4/2010 14:42

The profit margin for these works should be good although a lot of the clients asking for reduced price. When oil price goes up more, velosi should be re-rated. See taylor20 - 14 Apr'10 - 10:12 - 480 of 489.

[henryatkin] 14/4/2010 13:29

Well I can't see anything that justifies so much risk pricing so I can only assume its under valued. Just taken my first dip. Hope there are many more top ups. 85p stop.

[darola] 14/4/2010 12:22

Guess this all depends if you are an investor or a trader. I am the former and from that perspective all of the fundamentals stack up.

Quality will out....

[stegrego] 14/4/2010 11:59

Hoodless B

Velosi (VELO, 111.5p, £54.4m) FY results to 31 December 2009. Revenue flat $183.6m ($182.1m); EBIT $14.8m ($14.4m); PBT up 13.0% to $16.8m ($14.9m); EPS up 5.1% to 22.8 cents (21.7c); net cash of $19.7m. Using £1/$1.55 results look marginally ahead of expectations. This was a good performance and while turnover was flat excluding Nigeria revenues actually increased by c.6.8%.The statement speaks of a strong forward order book providing excellent visibility of c.60% on this year's revenues and a robust forward looking statement. Next year's rating of 7x looks undemanding. We maintain our buy and increase our price target to 135p, only 8.5x 2010 earnings estimates. BUY

[qs9] 14/4/2010 11:58

Thanks Taylor

The EV/EBITDA figure looks very very low IMO and surely attractive to some corporate/p.e house?? Views?

[stegrego] 14/4/2010 11:37

Odd that i can sell my whole holding online yet cant get a quote to buy even 500.......

That paints a picture.

[henryatkin] 14/4/2010 11:30

Bookbroker ..... I don't hold but I'm thinking of buying. My reason is that if I purchased the whole company for its current market capitalisation, the annual profits would give me almost 20% return on my investment. For most companies I would only expect a return of 10-13%, so a high degree of risk or under valuation would seem to be priced in. For a company that has five years of growing EPS, turnover and profit even though a major market downturn, I consider it quite an achievment. Can you please elaborate on the pricise figures that made you so bearish this morning.
thanks in advance - H.A.

[fortunatus] 14/4/2010 11:15

Current trading limits on Selftrade: sell 25000/100.3 buy 250(!)/105

[stegrego] 14/4/2010 11:02

Many shares have spent time in the doldrums for several years, only to awaken at some random point in the future.

Something that is on an historic p/e of less than 7, paying a dividend and with about 20% net cash isn't a sell.

The outlook statement wasn't gloomy, just realistic.

At some point, investors will start to see beyond the 'foreign' company tags and realise that that's where the growth is.

Earners in anything other than £ are a good bet IMO.
Corporate governance is no worse abroad than it is here. Plenty of dodgy UK based companies out there, but with shocking earnings and debted up to the eyeballs.

Im happy for people to sell, as it just makes my next buy even cheaper.

Value will out.