Velosi Share Discussion Threads

[tole] 03/9/2007 10:53

Steg - Those buys at 140-130-120 all looking good now :))

[tole] 03/9/2007 10:25

Had a litte commentary in Shares-mag last week picking up on the contracts announcement.

'The firm has good earnings visibility with a number of long-term contracts and there is potential for future growth'

Charles stanley also reiterating its BUY rec based on the recent share price weakness presenting a buying opportunity - 170p target.

[stegrego] 28/8/2007 07:47

VELOSI ANNOUNCES FIVE NEW CONTRACTS INCLUDING US$4.7 MILLION CONTRACT WITH BP INDONESIA


I see the wins keep coming...

Makes recent share price fall look silly, but make my buy at 97p look rather good ;) (even though i bought at 140, 130 and 120 too!)

[jonwig] 27/8/2007 14:58

Will anyone be in Aberdeen to say hello?

[jonwig] 17/8/2007 08:49

Well, Ste, this is on my 'buy' list for a few more, but not until the markets have settled down.
The yen rising isn't good news for stocks, as it may mean carry-trade holdings are being liquidated.

[stegrego] 17/8/2007 08:23

Mad falls here again on no volume at all it appears

Bonkers imo - but seeing as ive been buying since 140 down - WHAT DO I KNOW!

[jonwig] 07/8/2007 07:43

Thanks Tole - received just now.

[tole] 06/8/2007 20:22

On its way now....

[jonwig] 06/8/2007 20:04

Hi, Tole.
Any chance of sending me a copy of the CS note? Please

[tole] 06/8/2007 20:01

Still hanging onto mine...

Forecasts I have off the Charles Stanley April note -

Year to December, 2006A, 2007E, 2008E, 2009E
Revenues US$, 70.2, 97.4, 112.2, 124.0
Pre-tax profit US$, 8.0, 11.5, 13.5, 15.1
EPS c (dil. normalised), 15.0, 18.8, 20.8, 23.0
EPS p (assuming US$1.97: £1), 7.6, 9.6, 10.5, 11.7
DPS c, 1.0, 1.4, 1.9, 2.4

[jonwig] 06/8/2007 19:11

Post #2 on this thread (by thorne3) is worth revisiting.
Here are the results and forecasts to date:
T/O (£m) PBT (£m)
31/12/05 16.2 1.8
31/12/06 35.1 4.0
31/12/07 48.9 5.8
31/12/08 56.3 6.8
I haven't given eps because the number of shares would distort the picture, and the tax rate is variable (eg. 14% in 2006, 9% in 2005).
Note the current MCap - £46m.
The covering broker, Charles Stanley, rated it "strong buy" as of April.

[slapdash] 06/8/2007 10:48

over-tipped and over-hyped... slap

[stegrego] 28/7/2007 19:07

Given a BUY again in RHPS in midweek (been away last week & whole market turns to sh!t = typical ;) )

[tole] 28/7/2007 11:59

Growth Company Investor – Peter Shearlock's Small Cap Stock Picks

Velosi 'in line'

Velosi, which provides quality control and assurance services to the oil and gas industry, is trading in line with expectations, according to an update last week. The interim figures will be announced on 24 September. Up from 97.5p to 129p since last December's recommendation, Velosi remains a firm hold – particularly given the recent strength of oil prices and the level of ongoing industry investment.

[tole] 23/7/2007 12:31

Velosi expansion pays off
Companies: VELO
23/07/2007

Acquisitive oil and gas quality control specialist Velosi says interim results will not disappoint as it enters new markets.

Malaysia-based Velosi, which floated on AIM last August at 90p, more than doubled pre-tax profits to £4 million last year on turnover 117 per cent up at £35 million. The company, which provides services around the world to the likes of Shell and BP, says trading is in line with expectations, commenting that 'high profile' equipment failures in 2006 have increased 'international awareness of the importance of quality control and quality assurance' in the sector.

Velosi, headed by Dr. Nabil Abdul Jalil, has used acquisitions to expand its reach into the Australian mining market and South Africa. The same strategy has taken the company and into new business areas, such as 3-D laser scanning of oil and gas facilities to create 'virtual models' tp develop maintenance and modification design blueprints.

Analysts expect pre-tax profits to rise some 44 per cent this year to around £5.7 million, despite the weakness of the US dollar in which most of its business is done, with earnings rising 26 per cent to 4.8p a share. At 132p, down from May's 166p high, the shares should make further gains in the medium term.

[tole] 23/7/2007 08:19

Yes quoted spread has always been quite large - And like you say does deter buyers.

However the real prices have been rather tighter of late with the ability of course to get well within the quoted spread.

(Last week actual prices 128-131/131.75 on an advertised 127-133/135)

Stock available today at 134p - 3p under quoted offer.

[tole] 23/7/2007 08:06

Nice confirmation that everything ticking along okay.


Velosi Limited - Trading Update and Notification of Results

Velosi Limited ("Velosi" or the "Group"), a provider of asset integrity and HSE
services to a number of major national and multinational oil and gas companies,
is pleased to provide an update on trading for the half year ending 30 June
2007.

Velosi continues to pursue its strategy of entering new geographic markets and
it now operates through 4 principal offices in the USA, the UK, Malaysia and the
UAE, and has operational or representative offices in a further 34 countries
worldwide.

Market conditions remain positive with substantial investment in long-term
global oil and gas infrastructure projects continuing. International awareness
of the importance of quality control and quality assurance in the oil and gas
sector has increased following high profile equipment and infrastruture failures
during 2006. These factors, together with the continued strength of oil prices,
underpin the Board's belief that the Company is well positioned to continue to
deliver shareholder value. Trading is in line with market expectations.

Velosi will be announcing its Interim Results for the six months ended 30 June
2007 on 24 September 2007.

[tole] 20/7/2007 08:51

Gets a mention as a Stock to Watch in Shares Mag the other day.

"Currently it offers the only exposure in the UK to this type of business and the CEO Dr Nabil Jalil believes teh market has become more aware of the value of its services in the light of a number of high profile spills in the last few years. The company also has good earnings visibility, favouring three to five year contracts."

[jonwig] 10/7/2007 07:00

Stegrego - I think this has been a perennial problem, only brought into the news because a child was kidnapped rather than an oil worker.

The gross margin on their West African operations has, I think, generally been lower than elsewhere, and this may be because ransom payments are counted in 'cost of sales'. (Only half joking ...)

More significant, looking ahead, might be trend in oil prices and supply:

World will face oil crunch 'in five years'



Reopening currently uneconomic or marginal wells = more work for VELO?

[stegrego] 09/7/2007 20:37

I guess that the spate of kidnappings in Nigeria of oil workers is maybe holding back this stock now?