Velocity Composites Share Discussion Threads

[doodle1] 23/1/2023 11:19

Should be trading at £1 minimum imho

[yump] 23/1/2023 11:16

Anyone fancy a bash at what would be a reasonable value here ? Given that they have several contracts with major customers and are the only supplier (by the look of it) to GKN, then I assume they have a big moat around their business - in the form of past development and IP in the tech, software and manufacturing techniques.

[yump] 18/1/2023 18:53

You mean traders, not investors.

Selling just because it hit a broker target is stupid. Especially when the target is right in the middle of a previous set of resistance and support levels. How much thought went into that target ?

Its also daft from any serious investor’s point of view. The business has made a lot of investment in its developments and tech. over years.

Selling out when they’ve just jumped their annual revenue is really pointless, unless you think the share is only held by numpty traders.

Fair enough to sell if you’re desperate for the cash having bought around 60p ages ago.

Also the amount of money being traded is tiny.

As it has moved the price both ways suddenly, no doubt it will attract the attention of the “raid the piggy bank” gamblers.

[toptrump1] 18/1/2023 14:17

So it reached it broker target price and reversed, investors not wanting to wait and see if the next five years produces anything. Good call to cash in

[hydrus] 18/1/2023 13:56

The broker note sets out expected profitability and that will have been guided by the company I imagine. They haven't had a contract like this before and I suspect it will prove to be the start of further large contracts down the line. However it is of course a micro cap and yet to be proven but at £20m mcap I think it's an excellent bet. Management own a large chunk of the company and have not diluted at all - perhaps they don't want to give away what they see as a very large opportunity here.

[toptrump1] 18/1/2023 13:47

Looking at their news history they perennially announce contracts only to disappoint shareholders so with a larger contract might they make a larger loss?

[toptrump1] 18/1/2023 13:29

It’s over 5yrs, you don’t know what the profit is going to be, $1m a yr?
I’m always wary of tiny companies reporting large contracts, do they have the ability to profitably execute

[hydrus] 17/1/2023 13:53

I said before Xmas that there was a degree of anchoring to the original share price after the contract news and although it ended up 30% ish up that was £3m or so of extra mcap - for a $100m contract.....

[doodle1] 17/1/2023 13:41

yip.. action over the last few days has been interesting as well as under the radar of most.. MM's seem to be struggling to attract sells

[mdchand] 17/1/2023 13:36

An interesting example of how the market can take a few days to digest company changing news especially if an institutional investor decides to take a stake (not that I know in this instance but the price action would appear to suggest it). Amazing to think this Company was 15p 10 weeks ago.

[yump] 17/1/2023 13:10

It appears there are no shares to get hold of.

Who's got one of those rocket symbols ?

By my reckoning, that contract is going to give them £15mln revenue a year for 5 years and the market cap is only £22mln.

That's without any other business - which at half-year was £5.9mln revenue.

[husbod] 17/1/2023 13:02

My thought exactly.Maybe none of us want to tempt fate after so many years in the doldrums.

[arab3] 17/1/2023 13:01

Quiet here considering

[letmepass] 13/1/2023 19:43

With such a small free float expecting large increases here at someone keeps loading. Only 18 mcap, much bigger things to come

[noirua] 24/12/2022 11:20

11:40 Tue 20 Dec 2022
Velocity Composites soars 60% on major US agreement with GKN Aerospace

[euclid5] 23/12/2022 16:24

Based on Cenkos recent BN update:

This equates to a share price of 55p to 101p, which represents 111% to 288% upside versus the current share price.

55p is around £21m market cap and 101p is £42m. Mid range is £32m or 84p
But their TP is based on the EV/Ebita around 6.5 to 11

[hydrus] 23/12/2022 08:18

I think there is a degree of 'anchoring' here to the pre news share price.With the shares up not far off 50% it feels like there has been a big reaction to the $100m contract news. However it's added only about £5m to the mcap. The market cap here is so low that the increase is not reflective of the scale of the contract at all.Over at MSI today they announce a £25m mcap and it adds about £20m to the market cap.

[letmepass] 22/12/2022 21:11

Back under 30next week

[euclid5] 22/12/2022 21:00

assuming he is down to just under 3%, BRH still hold around 1.057m shs

[sideshowbull] 22/12/2022 20:11

Okay, on it Timbo.

A friend in need is a friend indeed.

BWTFDIK

[timbo003] 22/12/2022 20:00

>>SSB

Trevor is a colourful and controversial character who posts on various ADVFN bulletin boards as ydderf



He also happens to be the CEO (and the largest shareholder) of AIM listed investment company Braveheart

[timbo003] 22/12/2022 11:28

Trevor Brown (AKA ydderf) selling down, I wonder if he has dumped the lot or there are more to go?

[tomboyb] 21/12/2022 08:41

Very thin market overall on LSE -

Could see some significant movement on low vol -