Vislink Share Discussion Threads

[simon templar qc] 02/2/2016 16:50

I expected eps to fall for last year but didn't realise same eps for this year.

Nick R my take is current share price taking into account current earnings and unless there is more forward guidance the share price will be volatile.

Falling to an interesting level but I am not tempted to renter until there is more guidance.

With regards bonus that's irrelevant at the moment sales and profits are!

[davr0s] 02/2/2016 16:40

Mgt really messed this one up it seems - wonder what they will do now. They can't leave it silent with the relentless drop in price, can they?!

[nick rubens] 02/2/2016 16:28

Thanks for the profit forecasts. The market doesn't seem to believe them at the moment.

Anyone feel VLK should issue a 'know no reason' for share price fall?

[paleje] 02/2/2016 16:13

On 10 December with the share price 28p, Simon Thompson had this to say about them:-

.....So after factoring in the restructuring benefits, assuming a modest recovery in VCS's revenues, and continued growth in Pebble Beach, analysts are predicting Vislink's pre-tax profits could recover to somewhere between £6m and £6.3m in 2016 based on group revenues of around £58.4m. This implies EPS in a range of 3.6p to 3.7p and a forward PE ratio of less than eight. That's inexpensive.

Of course, it's only reasonable that investors are adopting a more cautious stance given the scale of the profit miss. The cyclical nature of advertising spend that underpins the income of broadcasters who represent Vislink's customer base is another risk to earnings. Also, a controversial share scheme the directors awarded themselves in the summer ('Awarding success', 16 July 2015) has not been well received. That said, with Vislink's share price trading 60 per cent below the 70p threshold required for the directors to financially benefit from the scheme, then the chances of them reaping windfall gains anytime soon are remote to the say the least. To do that they will have to bring the company back to growth.

That's something I am fully aware of having first recommended buying the shares at 43p ('Time to make the link', 26 August 2014), and last updated my view when the price was 40p ('Building momentum', 29 September 2015). So, having weighed up the investment case, I feel that the current depressed valuation - the shares are priced 37 per cent below book value and on a multiple of five times cash profits to enterprise value - more than factors in the negative factors I have outlined above, and I am happy to recommend that you hold onto the shares for recovery if you followed my earlier advice.

[zipstuck] 02/2/2016 16:06

EPS of 1.5 p for this yera and next at PE of 15 = current price.

[nick rubens] 02/2/2016 14:46

Is their a profit forecast for year end 31st Dec 2015?

I can only find lower revenues in the last trading update and no mention on profitability impact.

cheers NR

[prowlersanarse] 02/2/2016 12:19

Fair value 5p

[gleach23] 02/2/2016 12:02

Going by previous years I wouldn't expect any update on trading.

Last year they did provide an update in early March along with the notification of final results so maybe they will do the same again.

I thought we might have had an update on the "small bolt on acquisition" by now though.

Plenty of bad news being priced in here.

[simon templar qc] 02/2/2016 11:50

New low. No news on acquisition and no news on trading.

[simon templar qc] 28/1/2016 08:15

prowl

I am just being sensible you are not. There is value here but dependant on how the company is trading.

If sales are better than the market expecting the share price will jump if not the decline will continue imo.

[prowlersanarse] 27/1/2016 21:43

Fair value 5p

[simon templar qc] 27/1/2016 21:33

The market seem to me to be pencilling a possibility further weakness in trading.

[gleach23] 20/1/2016 10:22

Understandable - any doubts in this market and it might be wise to err on the side of caution.

It's been a good decision thus far!

[simon templar qc] 19/1/2016 14:09

gleach I agree.

Part of its a gut feeling lately. I did think the company was undervalued and the sales shortfall a glitch but have had second thoughts since.

They say no news is good news but in VLK;s case it was bad news last time they reported any news.

edit

By the way it was a quick turnaround with Carney as well on rates!

The world is continuing to slow down and this could be affecting VLK

[gleach23] 19/1/2016 14:01

That's a quick change of view Simon Templar QC!

[smithie6] 19/1/2016 13:47

Just seen an old video interview with the MD Hawkins
on Edison website....from 2014 I think...

...noted that Hawkins at times struggles to get his words out....like his brain is struggling to organise thinking and speaking....and sometimes looking into space to try to recall the spiel he had planned...
And he looked to be solidly overweight.
Not very convincing, imho anyway.

Compare with some MDs in video interviews who can answer questions from the heart and appear intelligent & motivated.

[simon templar qc] 19/1/2016 13:27

No mention of the acquisition and no news on trading and despite a small bounce off the lows the share price weakening again

Too risky and too early to call a recovery in share price from here.

[simon templar qc] 14/1/2016 07:34

Competitors shares collapse...



Took a small profit lately on uncertainty.

[albanyvillas] 12/1/2016 14:59

recent rns

To augment its software strategy the Company is in advanced discussions with a small bolt-on acquisition, which would provide software to broadcasters and be highly complementary to Pebble Beach Systems' existing broadcast solutions.

[albanyvillas] 12/1/2016 09:14

Cheers Gleach

This got me thinking could be a good year.

The US is the single largest market for defence and homeland security technologies, with a significant concentration of flagship customers driving innovation in surveillance and security technology. These customers are proven adopters of subsequent solutions with a well-understood path to adoption, albeit with significant barriers to entry and sales cycles. There is also on-going funding that has been allocated for the procurement and deployment of new equipment following the Federal Communications Commission's 2015 auction of Federal Government cellular spectrum (known as "spectrum relocation") that raised $41 billion (the "FCC Auction"). This is expected to drive material investment in surveillance technology and infrastructure over the coming three to four years.