Vianet Share Discussion Threads

[deanowls] 04/12/2013 16:15

Thanks paul, much appreciated.

[masurenguy] 04/12/2013 16:13

Thanks for the feedback Paul.

[paulypilot] 04/12/2013 15:34

Hi,

I've had my meeting with Vianet mgt today.
Have (hopefully) answered all your questions, and written up a post about it on Stocko-pedia, here:

Hope this is helpful. Comments/questions to the article would be best put after the article please (it's free to register just to comment, there is an option for that tucked away on the Plans page).

Regards, Paul.

[jeffian] 03/12/2013 23:26

Tech,

See #420. They are not going to increase turnover and profits from the core business; that has been tacitly acknowledged for some time. The best they can do is maintain a positive cashflow from that (Statutory Code permitting) while they build a new growth stream from
a) selling iDraught as a 'management tool' rather than a system simply to police the 'tie'
b) Fuel
c) Vending.

We need to hear about progress on a) and an explanation of why b) and c) are taking so long and whether they will ever be profit growth centres.

[tech] 03/12/2013 21:14

All I see is pubs closing every week, so how are they going to increase turnover and profits. Can somebody please explain.

[ccraig69] 03/12/2013 20:55

I would like to know more about us expansion. Are the 100 pubs just trials? If so what and when will they be extended to the pub chain. Are more than 1chain interested? Are their good noises from the chains. What is the potential and time frame. Are the big deals imminent or medium term.

[simon gordon] 03/12/2013 20:41

This stock reminds me of the old market cliche:

"More money has been lost reaching for yield than at the point of a gun."

[jeffian] 03/12/2013 20:08

The issue at VNET is that the core business (beer flow monitoring) is at best flat and at worst about to take a severe knock from the Statutory Code (if implemented). Regardless of politics, the scope for long-term growth in that part of the business was always going to be restricted by the pubco's reaching 'maturity' (i.e. not increasing the size of their estates). The plan was to make the beer monitoring equipment attractive to a wider market by developing it as a 'management tool' (iDraught) which went beyond its original purpose of just trying to catch tenants 'buying out' and becoming built into stock control and quality management systems which would be of use to Managed pub chains and independent operators as well. This, I understand, is the basis on which they are trying to sell into the US market. At the same time, they used the breathing space afforded by the cashflows from beer monitoring to expand into the petrol forecourt and Vending markets. The big question, it seems to me, is 'are these two other divisions (Fuel and Vending) actually going to deliver and when?'. We've been in the fuel market for several years now and both divisions seem to creep along marginally either side of breakeven. If we can't see a fast and sustainable growth profile for these 2 divisions, what are we doing with them? I would question the Board about their vision for these 2 divisions and the prospects for selling iDraught into US. Without a convincing answer, I can't see a happy outcome here.

[alan@bj] 03/12/2013 17:00

bsharman3 - I am told the indications are still that it will be out this month. But it's government isn't it, so it will always be tomorrow, until it becomes next week, or the month after.

[bsharman3] 03/12/2013 16:03

Paul - could you ask about the sales team/incentives when selling the product into the US market. Will this add greatly to costs or it it on a commission basis. We are all keen to hear the results of the Statutory Code - is there any indication when this will be - will it be weeks or months...?

[deanowls] 03/12/2013 04:00

From me if there has been any developments with the vending side of the business?

[bsharman3] 02/12/2013 18:24

Hi Paul,

I would like to find out how safe the dividend is - perhaps we will be told this tomorrow? The cover is less than 2 at the moment. I would also appreciate more information about the expansion/sales into the US and any competition in this market. i.e what is their growth strategy and how are they executing this plan.
Thanks.

[masurenguy] 02/12/2013 08:43

Cheers Paul - a more detailed review on the anticipated growth in US sales over the next 18 months would also provide some very interesting insight.

[alan@bj] 02/12/2013 08:35

The biggest question of course is what the outcome of the governmental review will be. It would be good to know whether they're feeling optimistic, or pessimistic.

[paulypilot] 02/12/2013 00:26

I'm hoping to see the company on Weds, so let me know if you have any concise questions & I'll report back.

Cheers, Paul.

[alan@bj] 01/12/2013 16:36

Interim results due out on Tuesday.

[alan@bj] 29/11/2013 16:38

Thanks Yupawiese. Point taken about the pub closures.

[tadders2] 29/11/2013 16:02

Good to see one or two buys.

[tadders2] 29/11/2013 13:28

Is a contract in America any nearer? If telemetrics is still profitable, then all three divisions are in profit.

[yupawiese2010] 29/11/2013 13:19

Whilst I dont hold here, & no doubt there are far more qualified people than myself to answer your question Alan.

There has been no negative comments regarding beer monitoring in

The petrol forecourt division I believe has been trading profitably during the last 3 months.

The problem is, pubs are still closing, you only have to look at the deal that was announced yesterday, in resect of Marstons selling 202 pubs to NRR.

[tadders2] 29/11/2013 12:17

Certainly no word from VNET.

[alan@bj] 28/11/2013 17:28

The drop in the last week is a bit worrying, given that we are approaching the time when the government response is expected. Anyone got a view?

[alan@bj] 28/10/2013 15:46

"Towards the end of 2013" according to the website at:-

[bsharman3] 28/10/2013 10:40

This is a good risk/reward investment. When are we likely to hear about the Statutory Code - before Christmas would be nice!

[paulypilot] 25/10/2013 23:41

Hi,

I think we should see 100p again once the Statutory Code threat to ban flow-monitoring equipment has (hopefully) passed. Having sold off the Post Office for about a third of what it's worth, I think Vince Cable is now discredited, so probably has little power left in a Tory-led Govt.

So I suspect George Osborne will now swat away any attempt to ban beer flow monitoring equipment - it would be a ridiculous move, as it would cost the Treasury money, allowing tenants to use illicit beer supplies with impunity!

Let's hope Vianet's lobbying has been powerful and persuasive, concentrating on the Treasury.

With that distraction out of the way, investors may well then refocus on the stonking dividend yield here, and any growth from vending & USA will be a bonus.

Anyway, let's see what happens & fingers crossed. Am pretty comfortable I'm going to (at least) get my money back here.

Cheers, Paul.