Vianet Share Discussion Threads

[mechanical trader] 20/2/2013 08:30

Note out.......

"Whilst we do not issue formal price targets, it should be
noted that a PER of 12 times 2013/14 EPS would
translate into a share price of 210p, which is 76% higher
than the current price of 119p".

[cockneyrebel] 10/2/2013 12:20

No VNET tip in SCSW this month, looks nailed on for next month then imo, probably makes sense as the year end is March 31 and they probably fancy tipping just ahead of a potential trading update at year end ino, as they often do.

Those large trades were interesting on friday - 130K of sells at a premium to the bid and the shares never fliched, a larger buy being filled imo.

CR

[cfro] 08/2/2013 18:28

Some great posts here this week. I've been dying to post myself but have unfortunately been incommunicado all week.

Think Saucepan pointed out that the £1.10-12 area on the charts was an obvious buy point and i took the opportunity to up my stake @£1.12, which proved timely.

Some others have pointed out scsw and the likelyhood that VNET will be the next tip. I agree, could very well be this weekend imo.

Actually i only renewed my subsciption to scsw a few months ago. Used to subscribe years ago and stopped around 2004-05 as i thought that it had gone off the boil even then, but since been proved wrong with its portfolios that have massively outperformed the overall markets. Lately, i have found they seem to be tipping many of the shares i hold or are thinking of buying, hence my re-subscription.

[simon gordon] 08/2/2013 17:23

Interesting story of a licensee who tried to refuse iDraught:

Publican's Morning Advertiser - 31/7/12:

Updated: Licensee loses case against Enterprise over I-Draught

Daniel Dempsey, licensee of the Green Tavern in Croydon, has lost a high court case against Enterprise Inns over the right to install I-Draught beer monitoring equipment in his pub.

https://www.morningadvertiser.co.uk/General-News/Updated-Licensee-loses-case-against-Enterprise-over-I-Draught

*You'll need to copy and paste the link.

[tadders2] 08/2/2013 17:14

Some big sales later this afternoon.

[hastings] 08/2/2013 13:12

Good spot this and going well, wished i had picked a few up.

[paulypilot] 08/2/2013 13:03

Hi waspfactory,

Thanks, although it's easy for me to look clever in a bull market, when most things are going up!

I didn't miss alcohol in January, in fact I've only had it once in Feb so far, am much better off without it, but I have a compulsive personality, so never could drink in moderation, it's all or nothing with me!

Sorry for o/t.

Cheers, Paul.

[waspfactory] 08/2/2013 11:54

Thanks for the VNET tip Paul, another good call. Interestingly, I also did the dry January and absolutely hated it, felt no health benefit and became a social hermit for 31 days. It's the taste of real ale and conviviality of the pub that I missed the most.

[interceptor2] 08/2/2013 08:38

The link above is the Vianet homepage which has a corporate video I have just had a look at, I'm sure most here have already seen it, but worth a look is anyone hasn't.

I was interested to find that Costa Coffee are already a customer for the Vianet vending machine technology. Well Costas is part of the Whitbread Group the UK's largest hotel and restaurant group, with over 2,000 outlets. As far as I can see Whitbread are not a customer for the idraught technology yet, so still much more potential in the UK still to come.

ic2...

[tadders2] 07/2/2013 20:37

Thanks Paul.....I'm off for a pint now...one or two does no harm.

Regards

Mike

[paulypilot] 07/2/2013 20:18

tadders,

What a nice post (no. 171), that's made my day! :-)

There's no way I could crunch all those RNSs every morning for 3 hours with a hangover, so it's a massive disincentive to drink!

Cheers, Paul.

[rolo7] 07/2/2013 18:43

IC mag have got there 2013 bargain picks tommorrow vnet maybe chosen?

[barlisoflincoln] 07/2/2013 17:55

From III



On you can download the jan issue for free with the NAPS in them. Go to spinning download link.
OMG! look at SCSW main nap today -Supergroup up£1

[tadders2] 07/2/2013 17:49

Hey Paul...what would we do without your Blog? Lets face it, now you don't drink, can't think of a better use of your brain power.

Cheers

Mike

[glasshalfull] 07/2/2013 17:44

I subscribe to SCSW & found it surprising that they had it as a NAP selection without producing a detailed write-up. Given the propensity of traders these days I'd imagine that there's always the possibility that a few traders arrive & perhaps a we spike up tomorrow in anticipation? No doubt they'll come & go just as fast, having locked in a few % gain if its tipped.

Irrespective, VNET look excellent value, especially with many of their small cap brethren producing daily highs as Paul intimates while they've remained relatively subdued. With 14p EPS pencilled in for the current year & 17.5p EPS in 2014 we are on single digit PER, and this anomaly is magnified when growth estimates of 25% in earnings are factored in....oh, and also when noting a dividend yield around 5%

Also factor in 70% recurring revenue base, strong cash flow & negligible debt...& I think it should only take a degree of patience for the shares to re-rate.

Regards,
GHF

[cockneyrebel] 07/2/2013 17:18

They napped 10 stocks but VNET is one in that 10 that they haven't formally tipped so the liklihood is that it's coming imo.

If not this month then next month but I'd bet on the former, they won't want it getting away before tipping it imo.

I could be wrong tho - obviously :-)

CR

[tadders2] 07/2/2013 16:58

Paul

Do you know anything about VNET being tipped this weekend?

[paulypilot] 07/2/2013 16:52

This is the six month chart for VNET. Note how the selling overhang from New Solera (from July 2012 to 7 Jan 2013) held down the price, and it has since partially caught-up with the wider small caps market (the other line is the FTSE Small Caps Index, SMX).

So just to get VNET up to par with the small cap index implies a price of around 130p. If they then announce good contact wins, and results, then who knows? But of course it depends on them delivering growth.

Regards, Paul.

[tadders2] 07/2/2013 16:39

Lot of buying this afternoon.

[cisk] 07/2/2013 10:18

Paul, I've reviewed your posts on VNET and as usual am impressed with your no-nonsense analysis and comment, many thanks for making it available to all.

It's an interesting company with several strings to its bow, of course the legacy cash cow which has been improved into iDraught and then some interesting opportunities, especially around vending machines. As you say, the core business, if it continues its conversion to higher-margin iDraught, supports the share price around its current level. Throw in new opportunities and regions (I'm thinking USA here) then there's plenty of upside on a 12-18 month view.

I'm naturally wary of any software company - in the past got my fingers burnt on Marlborough Sterling and more recently XN Checkout which got bought by Torex Retail. From memory the Torex directors were investigated by the FSA and I believe sentenced. Anyway long story short, I will keep an eye on the borrowings, but as you have previously mentioned they are relatively small, are reducing and their own broker note (from memory) has no borrowings from 2014 I think.

They have been on a spending spree over the years - maybe it's the time for those investments to start generating substantial returns.

Biggest -ve is the greedy spread by the MMs. Quite ridiculous.

[adam] 07/2/2013 09:48

Also PUB a customer

[mechanical trader] 07/2/2013 09:41

Talk on twitter that a tip sheet may
tip this one over the weekend.

Would be nice held for a couple of months
now and share price does seem to be stirring.

[paulypilot] 06/2/2013 20:28

Hi Felix,

The other thing to consider is that New Solera were selling all the way from July 2012 until Jan 2013, and they just fed stock into the market daily, to match all the buys. This had the effect of fixing the price at about 103p for a 6 month period when most other small caps had a pretty sizeable re-rating.

So this means VNET has still not yet played catch-up with its peers.
The house broker upgraded full year forecasts recently, although it should be noted that forecasts are based on a nil Corp Tax charge, as the group has been restructured to allow them to utilise acquired tax losses.

I'm looking for EPS of 12-14p for y/e 31 Mar 2012, depending on whether you take the headline figure, or the "normalised" figure that the house broker uses.

It should all be underpinned by the hefty divi yield. If it goes back to a quid, I'll just keep buying more, as it's worth it for the divi even if the new products are slower to gain traction than expected. It's just a nice each way bet in my opinion.

Cheers, Paul.