Vianet Share Discussion Threads

[sir leonardo] 22/2/2013 08:24

SIR SELLING DE LOT FFS GET OUT QUICK!!!!!!!!!!!!!!!!!!!!!

RAMPTASTIC ALERT!!!!!!!!!!!

RAMPTASTIC ALERT!!!!!!!!!!

[this_is_me] 22/2/2013 08:20

I was beginning to think that I had made a mistake selling at just above £1 for a small profit.

[paulypilot] 22/2/2013 08:15

All just short term factors. They have launched in over 2000 bars in 10 States in the USA, whereas originally planned just 1! Surely that is a positive?! A £0.4m cost over-run to do 10 times the planned expansion is irrelevant, and a sensible business move. There are positives in this statement, if you read it more carefully.

Also, operating profit is the same as earnings, because there is no tax charge, so I make it 11.5p EPS this year, instead of 14.5p forecast. Yes that's a miss, but it's largely caused by delays to new business, not cancellations. It amazes me how short term some people are, the business model is completely intact.

Anyway, thanks for the cheap stock, I've locked in a >6% dividend yield this morning by buying more at 87.8p and 90p, so with a 5.7p maintained total dividend, that gives a stonking yield of 6.5% on the tranche I bought at 87.8p.

Regards, Paul.

[cfro] 22/2/2013 08:15

I must admit i didnt expect this at all. Long term prospects do look very good but i have dumped my holding and took a hit.

[cockneyrebel] 22/2/2013 08:14

Will take a lot to regain investor confidence after that. Agree with shanklin, undefined as to how bad the miss is - I'm out.

Fortunately not very long and could get out.

Will make it up elsewhere in TCG and VLX where the cash will go.

CR

[downyr] 22/2/2013 08:08

Its got to be a concern that at the start of Dec 12 the management did not understand the adverse effect on the profit that the US expansion would cause as in Dec it is likely that the opportunities would have been identified and the new staff requirement understood

[darlocst] 22/2/2013 08:08

The constant slippage in timeline is thankfully why I kept my position v.small here despite the potentially good story. That said the current price, 90p, is an over-reaction imo.

[interceptor2] 22/2/2013 08:08

Poorly worded in respects to only mentioning operating profits, I think they will still do well in the future, so good luck to holders here.

But not for me now, so have sold my holdings. First profit warning for one of my holdings for ages, so can't complain.

ic2...

[bonio10000] 22/2/2013 08:07

Oh dear.

Looks like a load of short termers will now be lauding this as a long term investment.

[paulypilot] 22/2/2013 08:03

Hi,

It's delays rather than anything which undermines the growth or existing business model, so fall should be limited. Divi maintained at 5.7p, cashflow strong, etc. I'll be buying at around 100p if given the chance.

My thoughts on profits warning in more detail here:


Regards, Paul.

[cockneyrebel] 22/2/2013 07:59

poor show imo, recent trades suggested someone was selling into strength too imo.

CR

[0rb1t] 22/2/2013 07:57

It's normalised pre-tax which EPS is based on.

[shanklin] 22/2/2013 07:31

They don't comment on PBT, just on operating profit which is circa £0.7m lower than last year. Clearly PBT will be lower than that. Always seems bit gutless to me to issue a profits warning and then not give shareholders some idea of what PBT is likely to be.

[0rb1t] 22/2/2013 07:28

I think they could have worded it better. VNET would have been trading in-line if it wasn't for the extra investment in the US to accelerate the rollout (which is actually a benefit). So it looks like the full potential in the US could be reached earlier than previously anticipated.

£3.2m pre-tax is EPS of 11.5p. So currently on a forward PE of about 10.

[cwa1] 22/2/2013 07:21

Disappointing, especially given all the recent good publicity they have received.

[dangreen86] 22/2/2013 07:18

At least the dividend is being upheld. If these drop cold be a good opportunity to add more for those with a long term perspective

[bigbigdave] 22/2/2013 07:14

Hmmm, current trading tough but longer term sounds more rosy.

[fillipe] 21/2/2013 11:41

I've taken a few today - liking the look of the business and going forwardness....all on a modest and sensible rating.

f

[paulypilot] 20/2/2013 11:15

Hi,

Just for clarity, yes I wrote the Equity Active note here;


It's a new company, which has been set up by myself & some City/IR people, to highlight undervalued smaller cap UK shares.

The notes are independent, and are not paid for by the companies concerned.

The plan is that these notes will be used as an entree to promote a tailer-made Investor Relations package for the companies concerned. I'm not involved in the IR stuff, the rest of the team look after that. But the concept is that if a company is undervalued & overlooked, it probably needs some help with its IR & financial PR!

What I do is select the under-valued companies, and then write introductory notes on them, for issuing to a large database of investors by email (you can join the email list should you wish on the Equity Active website here: )

It's all completely transparent - see the disclaimers at the end of the VNET note. As we're not giving advice or forecasts, it's outside the scope of FSA regulation, but the sister company, Equity Development (which DOES do commissioned research) IS FSA registered.

Any questions, just ask me (rather than jumping to false conclusions, as people sometimes seem to do!)

I hope you find the note interesting. It summarises my current thinking on VNET, and also has a hopefully useful section on corporate governance review, which I did using ShareSoc's scorecard system.

Cheers, Paul.

[snatander] 20/2/2013 09:04

Although it is historic, we would like to see the
original AIM Listing document published on
Vianet's website.


Breach of Aim rule 26 if this hasnt been done

[valustar1] 20/2/2013 08:58

Look at the analyst name!