Visonic Share Discussion Threads

[papalpower] 17/1/2006 09:30

Expectation would have been 16 cents EPS, we are ahead of that so lets say in the region of 18 cents or 10 pence EPS for what will soon be a historic PER of times 10 at todays prices, next year (current year very soon) forecasts will be upgraded, so I would say based on the soon to be current year forecasts, at 107p they are trading still on a pr PER of less than 10 and well under times 10 for forward 2007 forecast. I will stick with therefore that these should be around the 150p mark, not the 100p mark.

[papalpower] 17/1/2006 08:33

GHF they are into security products, and we know where that side of things is going, so for as far as I can see, especially with the OEM deal as well, they are on for a few good years of growth.

[glasshalfull] 17/1/2006 08:24

Well done PP, what a great statement as flagged by your good self.

Wish I had noticed these prior to yesterday.

Do you have any forecasts for the company ?
Maybe just maybe catch them once the froth has fallen away, although I suspect they'll continue to reach new highs.


Regards
GHF

[papalpower] 17/1/2006 07:54

That is the kind of trading update I wish every company I invested in would put out and the new sales agreement is wonderful news too for now and the future.

[papalpower] 17/1/2006 07:38

January 17, 2006

Visonic Announces Pre-close Trading Update & New Agreement Signed

`Results Expected to Exceed Expectations'

The Board of Visonic (LSE: VSC), the international developer and manufacturer
of electronic security systems (alarms) and home management systems, is pleased
to make the following trading update prior to the Group entering its close
period.

Trading since the Interim announcement on 7 September 2005 has been very
positive and consequently Group turnover and profit before tax for the year to
31 December 2005 are expected to exceed current City expectations.

While the Group's core products have continued to generate healthy revenues
during the period, Visonic has also successfully expanded into new markets, as
well as having obtained patent approvals for innovative technological products.

This performance has been positively impacted by the ongoing success of the
Group's stated strategy of increasing sales through mass-market distribution
channels, developing and launching new innovative products and offering
customers flexible solutions with full support.

New Sales Agreements

During December, the Group signed an OEM agreement for the supply of its
products to a major North American security company, which is expected to
generate sales in the region of US$5m over three years. This agreement is of
particular significance as it is for the supply of Visonic's products as an OEM
product for another security company. This brings the total number of sales /
distribution agreements reached during the year to 12.

Visonic Technologies (VT), Visonic's subsidiary which manufactures real time
location systems for commercial and institutional use such as prisons and
hospitals, also achieved positive results during the year.

Commenting, Dr Avi Shachrai, CEO and President of Visonic, said:

'We are extremely pleased our results are likely to exceed expectations. We
have benefited enormously from the strategy we put in place a few years ago and
have been pursuing rigorously ever since. The Group's performance over the last
year demonstrates the strength of our business model, with our core products
performing extremely well, positioning us favourably in what is a competitive
environment'.

'Gaining this new OEM distribution agreement with a leading North American
security company is another achievement for the Group. It clearly demonstrates
the acknowledgment our products have gained in the market place as being of top
quality and technologically advanced'.

The Group intends to announce its Preliminary Results on March 22 2006.

CONTACT: Dr Avi Shachrai (President & CEO)

[papalpower] 17/1/2006 01:09

Taking the above linked article with the outlook from the interims, should provide insight into a potentially very profitable second half and a good chance of a full year ahead of expectations.


OUTLOOK

The Group performed strongly in the first half and remains ahead of internal budgets both in terms of sales and at the pre-tax profit level. Whilst July and August are traditionally quieter months for the industry and consequently the Group, sales in both the first two months of the second half were encouraging. The Board therefore remains confident of the Group's prospects for the year.

[papalpower] 16/1/2006 22:19

An interesting if now a few months old article on Visonic in the link below, but take into account the interim outlook which was after this article was written (being July/August decent sales)

[papalpower] 16/1/2006 16:07

A good day and holding up well over the opening rise.

[papalpower] 16/1/2006 09:37

L2 is 3 v 1 so could be moving up again soon.

[papalpower] 16/1/2006 08:29

Certainly has taken off this morning, would expect the trading update this week or next then !

[papalpower] 16/1/2006 08:07

Trading update due very soon. Very likely trading on a current year PER of less than 10. Good growth potential, so pending results and given a decent new current year prospective EPS for 2006 and forward pr EPS for 2007, could well be trading in the 150p or higher regions sooner rather than later I think. A lot will come out from the coming trading statement and prelim results. They have around 10m cash in the bank and to me things look exciting going forward.

[papalpower] 16/1/2006 08:06

added a new thread today for VSC at

[ynotna] 13/1/2006 16:14

share price broken out today ...... trading statement last year on 14 January so some news due soon?

[brummy_git] 07/9/2005 11:01

I topped up my holding this morning, since at 80-85p, the shares are still trading on a very reasonable p/e of 10 considering the attractive growth rates.

[brummy_git] 01/9/2005 08:23

Good news with today's announcement



and looking forward to the Interims on the 7th Sept

[brummy_git] 28/7/2005 20:25

FYI

Bullish points

1) Recent strong trading statements

2) Good products that are increasing their market share in an expanding global security market (ie 10-15% pa). Basically being an Israeli company provides an immense amount of underlying credibility to customers, since this country has been at war for the past 50-100 years….

3) Furthermore the security market is starting to benefit from the move to upgrade surveillance systems from analogue to digital technology (Re Quadnetics)

4) However regardless of the underlying attractiveness of the security industry, there are also very good upsides (with negligible attributed value) in the residential m2m and tracking systems markets, where Visonic can leverage its patents, technology and expertise.

5) Lowish forward p/e and PEG valuations
In my opinion (although this is not a 5-10 bagger) VSC it should grow profitably as the security & m2m markets expand over the next 3-5 years.
Good medium to long term play and one to tuck away in an ISA

6) Strong customer base

7) Technically advanced electronic security systems & components

8) Net cash of approx £4.7m

9) Low tax rate (23%) due to “approved enterprise” status in Israel, which will continue for the foreseeable future

Bearish points
1) Poor share liquidity. Difficult to buy stock in a tight market

2) Political risk associated with Israel

3) Tax risk, if Israel changes Visonic’s beneficial status (23% -> 35% corp tax)

4) Risk that CEO sells shares : If founder off-loads a significant chuck of his stock on to the market then price will drop...

[brummy_git] 04/7/2005 07:50

Encouraging (although not yet spectacular) pre-close trading statement this morning.



Should be positive for the share price this morning

[winky] 01/7/2005 11:19

I read the research that was published by their broker at the time of listing. Basically, the research was totally incorrect and showed the company's cash position much better than reality.

Beware.

[brummy_git] 15/6/2005 07:48

VSC issued a profits warning last year and mentioned that their VT division was experiencing problems. The latter has subsequently been resolved and they appear (from recent AGM statement) to now be performing ahead of budget

[simon gordon] 10/5/2005 13:19

What happened to make the share collapse last year?

[gregmcn] 14/1/2005 12:02

why did you buy it?

[barbra] 14/10/2004 19:31

I don't know very much about this company, but if you look at their daily trades in the past 2 weeks, there has been a large number of buys and virtually no sells. I was able to buy 10,000 shares online last week. Today, one can only buy 1,000 and sell 10,000 online. Does it mean that there is a large buyer for this company's shares?