Veltyco Share Discussion Threads

[quant_investor] 07/12/2017 00:20

Sometimes when a share price drifts you wonder what might be the cause, however when the company in question has recently confirmed they are trading strongly there should be no such concerns.

The P/E for the current year is around 10 which seems way too low. Turn the clock back 12 months as XLM were actually on a very similar rating. Since then earnings growth coupled with significant P/E expansion has seen the shares double. I expect similar from VLTY.

[xajorkith] 06/12/2017 23:17

Indeed basem1.

I could swear they said trading was strong & that revenue and EBITDA would be significantly ahead of market expectations ;-)

Funny old market at the moment - presenting a number of opportunities for those with a longer term view.

[basem1] 06/12/2017 10:30

Didn't think I'd get chance to add again at this level.....gift horse stuff this.

[xajorkith] 30/11/2017 21:42

Agree basem1 - could be any number of reasons he wanted to free up 25K.

As you say, he's leaving at the end of January & has only sold 12% of his holding - perfectly reasonable given his age and certainly nothing to worry about.

[basem1] 30/11/2017 18:21

There's strength in the market, I tried a dummy sell for my entire holding and was offered 82.6, my holding is way over NMS.

[basem1] 30/11/2017 18:19

He's leaving in January, why should it matter, he's just locking in some gains. Maybe needs a deposit for a house for one of his kids, all sorts of reasons why people sell.

[basem1] 29/11/2017 13:49

Just stay long and strong and buy the dips. Crazily undervalued. 50% upside in 6-8 weeks IMO.

[bahiflyer] 29/11/2017 13:35

Northland Capital are positive on the company and although as the company's broker you'expect that, its hard to argue with their summary that;

As a facilitator of gaming and betting operations Veltyco currently trades on a 31.0% discount to the weighted average EV/EBITDA of major gaming and gambling peers, and at a similar 32% discount to average PE. Our rating remains Buy.

[shanklin] 29/11/2017 07:31

nurdin, Thank you for your post 235

[basem1] 28/11/2017 13:41

Looking at the delayed sells I think we have our seller finishing off here. Soon be £1, maybe even by Friday.

[basem1] 28/11/2017 12:03

Anyone selling now is either very stupid or very leveraged.

[cottoner] 28/11/2017 10:59

Last year there was another TU issued after the new year and before the final results were issued in May.

Recap:

13 December 2016 - Trading Update

Given current levels of business, the Board expects the results for the year ending 31 December 2016 to be ahead of market expectations.


14 February 2017 - Trading Update

Based on the management accounts the Board expects that the results for the year ended 31 December 2016 will be significantly ahead of market expectations.


16 May 2017 - Final Results

"The current financial year has started strongly. The Board believes that it will maintain this momentum for the remainder of the year and is confident that the Group will continue to deliver strong growth."


4 July 2017 - AGM statement

"The Board of Veltyco is pleased to confirm that trading in the first six months of 2017 has been strong in all business verticals. The revenue and EBITDA for the period January to June 2017 are significantly ahead of market expectations. The Board has confidence in the continued success of the Group and of the business exceeding market expectations for 2017".


18 September 2017 - Interim Results

Current trading continues to be strong which should enable the Group to report performance ahead of current market expectations



28 November 2017 - Trading Update

Given current levels of business, the Board expects revenue and EBITDA to be significantly ahead of market expectations for the year ended 31 December 2017.


Jan/Feb 2018 - Trading Update ??

Seems to be a pattern emerging :-)

[rcturner2] 28/11/2017 10:33

I am very pleased with that trading statement.

I think the full impact of the current trading will only hit when we actually get the final results, as the improved performance has not yet fed into the financial ratios that people look at, such as the PE ratio.

Quite frankly on even a lowly PE of 15, this should be north of 150p.

[nurdin] 28/11/2017 10:28

shanklin..your comment re EBITDA

Looking at H1 results,depreciation and amortisation charges were just 147.5k euros.Profits were taxed at 2.5% and they had net cash of euro1.32m on the balance sheet...therefore earnings accretive from interest contribution.I think one can safely assume that their 'significantly ahead ' statement applies equally to EPS.

[panic investor] 28/11/2017 09:44

Been looking at this - spotted a few good posters to back my thoughts up - added to the SIPP this morning

[babbler] 28/11/2017 09:39

When are results out??

[busterdog2] 28/11/2017 08:48

Hard to fault, you don't see many companies reporting those percentage increases, plus the promise of a divi.

[cottoner] 28/11/2017 08:44

To put today's 'significantly ahead' of market expectations into context, here's a reminder of the financial highlights for the six months ended 30 June 2017, and that since then trading has remained strong.



Revenues increased by 202% to €6,355,573 (H1 2016: €2,102,558) exceeding the full year 2016 revenues of €6,082,468

EBITDA for the first six months increased 410% to €3,801,354 (H1 2016: €744,129) and an increase of 80% compared to the operating EBITDA for the full year 2016 (€2,107,975)

Net profit amounted to €3,601,996 (H1 2016: loss of €1,123,289)

Basic earnings per share 5.14 cents per share (H1 2016: 2.57 cents loss per share)

Net cash balances €1,320,692 (31 December 2016: €144,125)

Given the strong trading performance of the business, the Board will consider paying a dividend in 2018 based on the final results for 2017

[xajorkith] 28/11/2017 08:14

Agree that 10p possible this year basem1, just trying to remain cautious in the face of another forecast busting update ;-)

They made a similar statement back in July, resulting in a near 30% upgrade to FY forecasts.

Either way, oustanding value here as the share price rise seems to be indicating.

[basem1] 28/11/2017 08:12

Significantly tends to mean 15% above market expectations in my experience.

[shanklin] 28/11/2017 08:05

Obviously great to see today's update. However I do wish they would talk about EPS not just EBITDA. Presumably broker updates will leak into the public domain so we get a little bit more clarity as to what is going on.

I certainly agree with the view expressed above that VLTY should have told us what market expectations they expect to beat.

So, A+ for how they are doing operationally but E- in terms of providing an informative update.

[basem1] 28/11/2017 07:59

It's all in Euro cents remember at 1.12 at present