Veltyco Share Discussion Threads

[busterdog2] 21/12/2017 11:37

Any idea how they would enforce a ban?

[nurdin] 21/12/2017 10:52

Their venture into crypto currency services could nicely fill any hole left by the ban on binary options..if there is a hole that is.

[aleman] 21/12/2017 10:01

tez123 - where does it say anything about Bitcoin? I doubt they will accept it. It is too slow and expensive for gambling - for most things, in fact, with a median transaction fee for quick conversions around $20. If BTC don't change quickly, they will likely be overtaken by cheaper and faster alternatives and it might even collapse. Bitcoin Cash already looks to be gaining on Etherium and Bitcoin and there are others that look quicker and cheaper. I'm not investing in the crypto space but Bitcoin would definitely not be on my list if I was. I don't think it is going to remain top dog much longer unless it changes. That is why some investors in Bitcoin pushed for the Bitcoin Cash fork, where the transaction fee is about 100 times cheaper.

I think it is more likely a series of individual currencies will be set up for each VLTY client site - some might be ICOs and some might be by mining. Each site will have different tax requirements and tax authorities take a different view depending on the type of cryptocurrency. (Yes - tax authorities are already starting to get involved but people trying to get into the space don't tell you much about that risk when they are trying to get your money.) Some offerings will be taxed as income if it's a straight swap and some will be regulated as securities if benefits are conferred to investors. Mined coins tend to attract neither for now but might if they attract some kind of benefits, or might see exchanges regulated if they get viewed as widespread currencies rather than tokens to just operate on one or two sites. Different VLTY clients will have different views on which tax route they want to go down so will probably want different cryptocurrencies that VLTY can operate in one wallet. Each having its own crypto will make it harder for customers to take winnings onto a competitor's site, although in time competition will push weaker ones to the sidelines and they may well accept others in VLTY's wallet - that's if regulation doesn't overtake everything, which it probably will in a few months. Meanwhile it's rush, rush, rush!

This is just my GUESS on what research I've done, although it is amazing how many crypto launches are just ignoring the nascent tax and regulatory issues in their mad scramble to get on the gravy train before it leaves the station.

[twistednik] 21/12/2017 09:02

Fair play to the Company - mention 'blockchain' or 'crypto-currencies' in any RNS and watch the share price rocket !

[tez123] 21/12/2017 08:17

Wonder if the wallet will have an exchange facility to accept other cryptos outside of BTC?

[shanklin] 21/12/2017 08:03

Nice one nurdin.

[basem1] 21/12/2017 08:00

Well done Nurdin, I'm upto 37,200 at an average of around 77p.

[nurdin] 21/12/2017 07:41

Todays announcement should give the share price a decent boost.

I bought back my shares yesterday after some consideration.

[gary1966] 20/12/2017 18:55

As I said yesterday I got back to the company after an initial response from Graham Herring about the possible impact on the co. I have come home today to this message, also from Graham and I hope he doesn’t mind me posting it here.

Gary,

The Company will issue an official announcement when it believes these rules will negatively impact the company’s operation, which at this stage the Company does not believe.

Regards
Graham

Responses from Graham have been prompt and open and I wish all companies whether they be on AIM or any other market were so courteous to their shareholders. Personally haven’t sold a share and am happy to trust what Graham has said and not try and second guess what may or may not happen in the future.

GLA

[twistednik] 20/12/2017 14:40

Well around 75p does seem to be a good support level. Will be interesting to see if it's 80p+ or below 70p in the New Year!

Right enough posting here. Will keep on the watchlist and monitor the RNS to see how this plays out.

[basem1] 20/12/2017 13:55

Fair comments twisted, but I think your being a bit too negative. I've taken some more today, 2 lots in fact. The chart seemed to be playing out nicely.

[basem1] 20/12/2017 13:55

Fair comments twisted, but I think your being a bit too negative. I've taken some more today, 2 lots in fact. The chart seemed to be playing out nicely.

[twistednik] 20/12/2017 11:16

"No big deal" could be understatement of the century! The point is we don't know that the deal is and what impact it has on the Company. PE of 7 but forecast PE could be 20 if profits are impacted!?

My view on the business model is that they direct people to sign up for binary options products and each time the customer deposits money, the affiliate marketers take a cut. This leads to recurring revenues from the options site as long as the customer continue to use their account regularly. The revenue is generated with no additional ongoing marketing cost so likely drops straight to the bottom line, significantly enhancing margins and cash generation.

What happens if all these 'binary' customers (which VLTY continues to receive ongoing commission for) are forced to close their accounts following ESMA? There could be a significant impact on profitability of the business.

What we don't know (as they Company won't disclose) is what % of the total business this piece makes up and potential to impact future revenue / profits.

Insiders are the only ones that will be able to take a commercial view on this.

AIM is a bit of a leaky bucket and I'm sure we'll see the share price drift down or up ahead of results on the back of expectations.

This certainly isn't a one way bet and likely that the PE looks 'cheap' for a very good reason! Market is usually right.

[shanklin] 20/12/2017 07:55

bd2

I would have expected RNS stating that the ESMA announcement potentially has a material or immaterial effect on their future revenue and profitability. I am not prepared to be invested in a company which is disinclined to provide any information on this front.

As PIs we are of course taking calculated gambles on an ongoing basis. But I do like to be given a reasonably accurate picture of what I am taking a gamble on, rather than be in a situation where PIs are treated as second class citizens and left completely in the dark.

[basem1] 19/12/2017 20:55

There's no big deal here, buy the dips I say. PE of around 7 now.

[busterdog2] 19/12/2017 18:34

Shanklin - Not sure what you expect, but they issue Full Year and Interim reports in addition to Trading Statements and relevant company information. They have also taken the trouble to reply to nurdin and others, which is more than a lot of companies would do.

[shanklin] 19/12/2017 17:21

Sounds like VLTY have a deliberate policy of keeping shareholders uninformed. IMHO.

[gary1966] 19/12/2017 16:31

Nurdin,

Just got back in to find an email saying the same. Have replied to say that I didn’t expect any affect on the 2017 figures but was looking for reassurance in general that the proposals didn’t affect their business model.

Gary

[twistednik] 19/12/2017 15:53

Thanks Nurdin,

the way I read that statement is that there is no impact on the 2017 revenues (which I would not expect anyway), hence they are not required to issue an official regulatory statement.

However, there could be an impact on future revenues, but until they know more about the ESMA plans they cannot comment on the impact.

I’m going to stay on the sidelines until the next trading update as for me there is too high risk now of an outlook comment in the update which warns on uncertainty of future profits. I want to see them address the issue head on and unfortunately their comment raises more questions than answers.

Good luck all and I’ll try not to be envious if the share price is £1+ next year !

[basem1] 19/12/2017 15:30

Thanks Nurdin, just waiting for SFR to hit 74p and then I'm in for more.

[nurdin] 19/12/2017 14:47

This is the response I got from the company:

Veltyco is fully aware of the ESMA statement which focuses on CFD and binary options trading in Europe. Veltyco is an online marketing company for various partners and verticals, including online casinos and sportsbook betting, online lotteries and online trading. As recently announced, the Board of Veltyco believes that full year 2017 revenues and EBITDA for the group will be significantly ahead of market expectations, as we continue to enjoy strong growth across all verticals of operation in the Group.

Veltyco does not disclose analysis of its revenues per industry vertical where it operates. The Board anticipated the announcement from ESMA, and it will closely monitor further developments in this matter, and will issue a statement if the need arises.'

[nurdin] 19/12/2017 10:05

Garry1966..I have been trying to contact the company since yesterday but looks like their phone is out of order.Would be interested to know how you managed to contact them.

[nurdin] 19/12/2017 10:03

The saving grace for VLTY regards ESMA is that the regulation, specially in relation to binary options, will impact only those companies serving retail customers. As far as I am aware, VLTY have no presence in the retail market and will be largely unaffected by the ESMA proposal.

I will try to confirm that with the company.

[gary1966] 19/12/2017 10:02

I contacted the company yesterday to ask if an announcement would be made but no response this time.

[twistednik] 19/12/2017 09:07

Yes, given IG, CMC etc all released statements yesterday, I'm a bit surprised there is no pre-8am RNS !