Vianet Share Discussion Threads

[bouleversee] 13/7/2022 16:52

?. A link would be helpful. Couldn't see any announcement on their website.

[zipstuck] 13/7/2022 10:00

Interesting new director.

[zipstuck] 09/6/2022 09:44

I think this will bode well for the outlook this year and will be more important than the results next Tuesday

[jeffian] 28/4/2022 10:05

Yes, I was quite happy with the TU. I'm a fan of dividends but only when the cash is there and not required for investment or growth so I can quite understand that they should be deferred until there is greater clarity on the supply/pricing of microchips.

[zipstuck] 28/4/2022 09:38

I think we will see a more positive statement with the results in June as the country gets back to normal and good revenue opportunities.

Strong hold IMHO

[illiswilgig] 11/1/2022 11:31

niggle,

'The last time I looked at Vianet was 9 years ago. That’s 9 years of it not going anywhere!'

Indeed. You are not the only one to note this.

Which makes me wonder why you chose to buy shares at recent lows?

Particularly given your questions over capitalised development and goodwill/intangibles?

What opportunity do you see that overcame these issues for you? Or is it time to take a quick profit?

I certainly hope you are right with regard to 2022, and I think there is good reason to think so. This morning's rns being a sign that the company is emerging from the pandemic more oompetitive, more efficient with better products and services than two years ago. Doesn't mean it will succeed, but I think the odds are in its favour now,

cheers

Illis

PS - checking my records I notice that I did indeed take a small position in VNET 9 years ago. It doesn't say but probably for the value and dividend at the time. It wasn't until last year when searching for cheap turnarounds, growth opportunities I was surprised to find one overlooked in my own portfolio. I've been buying on dips since then.

[illiswilgig] 11/1/2022 11:04

Celeritas

'Looks like a few knew about this at 3:30 yesterday judging the sudden jump.'

Yes I thought that as well.

Though I wonder if it is linked more generally to increasing traction of smart machine sales - of which this is an excellent example?

cheers

[celeritas] 11/1/2022 10:26

Looks like a few knew about this at 3:30 yesterday judging the sudden jump.

[jeffian] 11/1/2022 10:18

Whilst today's announcement of the Lavazza deal may not be 'transformational', it is certainly a validation of the company's services and technology. Hopefully a sign of more to come.

[niggle] 11/1/2022 08:43

Bought these before Xmas and enjoying the renewed interest. I love the way ADVFN puts a marker on bulletin boards so when you go back on one it’s set at the date you last looked.

The last time I looked at Vianet was 9 years ago. That’s 9 years of it not going anywhere!

Hopefully 2022 is different!

Begs the question over the number of posts since then!

24m Intangibles?

Capitalising development costs - surely they are just costs? hmmmm?

Company says it doesn't need more cash for 2022

[illiswilgig] 08/12/2021 09:24

If they were thinking of raising more funds through equity I'd have expected them to do it whilst the share price was riding high earlier in the year.

Operating cashflow was positive at £1m in H1 and £1.4m after working capital movements despite much of their customer base being locked down for part of Q1 and restrictions being in place for all of Q1.

After investing 1.2m in R&D and equipment purchases - the net cash outflow was 0.46m - but thats after repaying 0.66m of debt.

Unless there is another mandatory lockdown affecting their customer base it looks to me as if they have turned the corner successfully. Cashflow is now rising through H2 as full price recurring revenue is received, new contracts signed and new connections made. They should be able to afford to invest in working capital, R&D, sales and marketing and pay down the debt.

As always with VNET the exciting growth opportunity is always a little bit slower to realise than I anticipate - but the jam tomorrow is looking even more delicious today - and certainly closer than it was.

I agree with you about the dividend. I'd much rather they pay down debt, fully invest in growth and build up a cash pile - but that will depend upon the largest shareholder, the chairman with 30%. I'd be happy with a token dividend.

cheers all

[spooky] 08/12/2021 08:29

Looks like they need to raise some money to me, not sure why they are talking about dividends.

[ntv] 08/12/2021 08:28

No real surprises in the results. Out look seems ok if pubs keep open etc

[jeffian] 16/11/2021 16:45

"Working with our suppliers, we have so far managed to mitigate the impact of the global semi-conductor supply shortages on customer installation programmes, however this has resulted in paying marginally higher stock premiums for components."

The recent trading update does not suggest it's a problem having much impact. 90% of VNET's income is from "recurring revenues", i.e. monitoring and providing management information from existing installations.

I don't know about "disappointing performance of late". They've been trading in a range since the market collapse last March and although they are upbeat about revenues recovering, we've made a substantial loss and are still not back at pre-Covid levels, currently trading around 10x 2019 profits. It's never been a high-PE share so that's probably why we are where we are until the market sees the colour of their money.

[bouleversee] 16/11/2021 15:37

Quite. I should have thought there must be quite a few things a tech company needed which might not be readily available in present circumstances. Anyone needing microchips, for instance, is in a hole. Are Vianet not supplying the machines which automatically provide coffee or whatever as well as the software which operates them?

However, Jeffian, feel free to come up with some other reasons for their somewhat disappointing performance of late.

[stpalm] 16/11/2021 14:47

There is hardware involved, Doesn't the system rely on complex sensors so it knows if beer or cleaning fluid is going through the pipe? I am sure there are other things but that was an obvious one.

[jeffian] 04/11/2021 18:34

They're an IT company. What supplies?

[bouleversee] 04/11/2021 13:35

The only possible read across is whether Vianet may also have problems in getting whatever supplies they need in a timely way.

[celeritas] 04/11/2021 12:52

Vianet are very different to Next, I don't see the read across. This is a semi conductor issue affecting the whole world. Demand is very high but business will stock up just like people did with toilet rolls.

[bouleversee] 04/11/2021 11:19

One would like to think so but Next, which had good results, have warned that supply difficulties will continue and I heard they are having to fly stuff in which nobody will be happy about.

As regards Vianet, do you not think that that drop might have something to do with the increase in Covid cases when the cold weather has barely started and the consequences that that implies? I see the share price is picking up again so may top up but I have lost a huge amount by doing so with other companies after big falls so may just sit on my hands.

[celeritas] 04/11/2021 10:13

The at best seller was given a raw deal the other day, a few others then see the move and panic. Take advantage if you can and go against you natural instincts which to most investors is fright. The update was good, business is much better, only negative was supply of parts but like toilet roll I expect the supply issues to normal out over the coming months.

[its the oxman] 04/11/2021 09:42

Bizarre fall following a decent update. Have added a few. Hoping for an easy gain and move back clear of 100p. Or I'm missing something entirely.

[celeritas] 02/11/2021 16:04

Some one stuck an at best in, MM's making the most of it.

[bouleversee] 02/11/2021 13:36

Am curious to know what you traders call a few, i.e. what sort of sums you risk in such a situation, if that isn't a state secret.