Vianet Share Discussion Threads

[galeforce1] 30/8/2022 15:06

It's probably the widespread predictions that 100's of pubs are going to go out of business over the next year, because most of them haven't yet fully recovered from all the lockdowns, and now they face huge bills for heating & lighting.

Most of the profits at Vianet are made from the old Brulines business, which is mostly measuring devices installed in pubs.

[dlp6666] 30/8/2022 10:21

Any idea what's driving the price collapse?

[its the oxman] 05/8/2022 13:26

Yes and back above 100p if things go to plan - surely not too much to ask.

[bouleversee] 04/8/2022 12:06

Looks great on the first chart doesn't it? LOL.

[illiswilgig] 04/8/2022 11:31

I am also suprised that its fallen back to 62p. Bought a few this morning for 61.49p.

cheers

[its the oxman] 04/8/2022 08:58

Time to load up. Still c. 62p. Trading well, director buy and massively out of favour. Hoping for a strong bounce with next newsflow. But then also never thought it would fall this low

[bouleversee] 13/7/2022 16:28

Thank you, Zipstuck.

[bouleversee] 13/7/2022 15:52

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

[zipstuck] 13/7/2022 09:00

Interesting new director.

[zipstuck] 09/6/2022 08:44

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 09:05

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 08:38

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?