Vislink info and chart help please

#1
Vislink are valued below 60 million yet expect sales of 60 mill this year. 4 directors have bought including the illustrious Bob Morton. I bought some more today after 2x200,000 buys and guess what. 60 mins later I could have paid 2p less :eek:

However looking at the money float chart why is is it that since sept money flow is positive but the price is falling Help please why?. They are expected to produce EPS of 2.2p this year and have sales of 40 mill for the first 8 months. In the info tech hardware sector they are very cheap.

Below is the interim statement which is highly positive and considering they are into digital TV equipment and considering the iminent analogue switch off they must do very well the next few years

Anyway the website is www.vislink.co.uk and the interim statement is below. What do you all think?



Interim results for the six months ended 30th June 2000
Introduction
The Group's focus during the first half of the year has been to implement the Board's strategy which is for the Broadcast and Telecommunications Division to become the leading global designer and manufacturer of microwave transmission equipment for broadcast television.
I am pleased to report that we have made rapid progress with the achievement of the strategy through two significant acquisitions, which pave the way for the future growth of the Group.


Acquisitions
Following shareholders approval, we completed the acquisition of Advent Communications Limited (Advent) on April 18, 2000. Advent designs and manufactures equipment for the satellite news gathering ("SNG") market. SNG products fall into three product types: portable flyaway systems, mobile vehicle installations and fixed earth stations. The acquisition provides the opportunity to create a much broader based satellite communications business within our overall Broadcast and Telecommunications Division.

The consideration was £13.38 million, satisfied by £12.46 million in cash and the issue of 1.2 million new ordinary shares (valued at £0.92 million on the basis of the closing mid market price per ordinary share of 76.5 pence on April 17, 2000). In addition, Advent paid £1.14 million in pre-sales dividends to its current shareholders and post-completion pension contributions of £0.88 million to its directors. The acquisition was approved by shareholders at an Extraordinary General Meeting on April 17, 2000. The results of Advent for the period since completion are included in this interim report within the Broadcast and Telecommunications Division.

Our second strategic acquisition was announced on June 27, 2000 when the Company agreed to acquire the Microwave Radio Communications business (MRC) of Adaptive Broadband Corporation for a consideration of up to $20.75 million (equivalent to approximately £13.8 million).

MRC is based in the United States of America and is the major supplier of broadcast microwave terrestrial links in the United States with an estimated market share in excess of 50%, with annual sales of US$34.8 million to June 30, 1999. MRC is involved in the design, manufacture and marketing of digital and analogue microwave radio systems for studio to transmitter links and portable and vehicle based electronic news gathering applications for the broadcast industry.

The acquisition provides the Group with the opportunity to access the US market and to strengthen its international position for both digital and analogue broadcast quality television transmission equipment.

The Company also announced a placing to raise approximately £4.5 million (before expenses) to finance part of the consideration for the acquisition. The remainder of the consideration was financed from bank facilities arranged for the purpose.

Both the acquisition and the placing were approved by shareholders at an Extraordinary General Meeting on July 26, 2000 and the acquisition was completed on July 28, 2000.

Both Advent and MRC will work with our existing Broadcast and Telecommunications businesses to address the growth in digital TV and data systems around the world.


Results for the six months to June 30, 2000
During this period the overall profit on ordinary activities before taxation for the Group was £0.42 million (1999 - loss of £0.74 million).

The Group's continuing operations, comprising the two divisions, generated an operating profit before central costs and goodwill amortisation of £1.12 million (1999 - £0.38 million including a loss on discontinued activities of £0.91 million). Orders received in the first half of £26.4 million (1999 - £21.4 million) were in line with expectations. Due to a number of contracts scheduled for delivery in the second half, sales were £19.94 million (1999 - £48.51 million including discontinued activities of £26.94 million).

Central costs were £0.58 million (1999 - £0.65 million) and goodwill amortisation was £0.21 million (1999 - £0.07 million). Due to the funds realised from last years disposal programme, net interest income was £0.09 million (1999 – expense of £0.40 million).

Following the acquisition of Advent, Group debt was £2.29 million compared with net cash of £12.08 million at December 31, 1999.

The level of orders received in the first two months of the current half year was excellent. These amounted to £13.4 million including a good contribution from MRC for the month of August. The Group has a strong outstanding order book.

Earnings Per Share
Earnings per share were 0.36 pence (1999 - 0.26 pence from the continuing businesses) an increase of 38%.

Dividends
The Board is not recommending an interim dividend for the year in line with the Group's strategy to only recommend an annual dividend in future.

Business Review
Broadcast and Telecommunications Division
For the six months sales were £12.70 million, including £1.92 million in respect of Advent. Due to the longer term capital nature of contracts currently in the order book, overall sales were lower than the same period last year (£13.67 million).

The Division's operating profits were held back to £0.81 million (1999 - £0.90 million) before goodwill of £0.21 million (1999 - £0.07 million) due to an initial operating loss in Advent of £0.21 million (before goodwill amortisation of £0.14 million). This occurred in the six weeks following the acquisition when lower than expected levels of output were achieved due to a combination of contract delays and the integration of the business into the Division. Advent has been trading profitably since May with an excellent level of orders received in the last two months.

The Broadcast Division has a strong order book, having won some significant export orders. Notable amongst these were a £2.3 million order for a state sponsored TV station and transmitter system for a West African country, a £0.8 million contract from TV Espana for 38 new generation digital and analogue portable links for outside broadcast coverage and a £1.6 million order from Maroc Telecom for the installation and commissioning of fixed and mobile earth terminals to link remote areas of the country to the developing GSM network. In the UK, Continental Microwave Limited has won orders to upgrade existing digital TV transmitters previously supplied to increase their coverage and is well placed to win the second phase of new site installations, which is expected towards the end of this year.

Video Technology Division

Sales in the period were £7.24 million (1999 - £7.90 million). The Division has started an investment programme to enhance its Internet video based systems, developed by Active Imaging for the acquisition and transmission of real time and pre-recorded video images for the business to business sector and the new products are expected to be available for trial later this year with sales and shipments commencing early next year.

As a result of charging £0.11 million in respect of these exceptional development costs, the first half year divisional operating profits were slightly lower at £0.32 million (1999 - £0.39 million).

The Division continues to win many interesting orders. Active Imaging has won orders from Trafficmaster to enhance and expand their national traffic monitoring network. DataCell secured a £0.3 million order from Portals Limited to supply a print quality controls system for the printing of bank notes. Hernis, our Norwegian based video systems company, has won a £0.6 million order to supply Royal Caribbean Cruise Lines with an integrated CCTV system for two new vessels providing internal and external observation and safety systems.

Strategy
The key to the Group's future growth is the continuing development of its two core businesses. The two recent acquisitions represent a significant achievement in the creation of a global business with critical mass in its international markets for the Broadcast and Telecommunications Division. The Group will continue to develop this Division organically through both market growth and new product development. The investment in Internet video systems and continuing developments within the Video Technology Division are expected to achieve future growth by capitalising on the opportunities for Internet video and CCTV applications.
Domicile
In my letter to shareholders in respect of the acquisition of MRC, I stated that the Board believes there would be a significant advantage to the Group's holding company being an English rather than an Irish company, especially in view of the fact that the business of the Group is managed from the United Kingdom. Accordingly, it is the intention of the Board to take the necessary steps, subject to shareholder and court approval, to effect this change.
Prospects
During the current year the Group has experienced an encouraging level of orders and now has a strong outstanding order book. With the integration of Advent and MRC into the Broadcast and Telecommunications Division, the Board is looking forward to the future with confidence.
A L R Morton
Chairman
September 6, 2000
 

ChartMan

Legendary member
5,580 46
#2
This stock is NOT in favour!
to answer your question, Money flow has been in decline since Mid September, not rising/positive as you state.
It was rising from mid Aug to Mid Sept,along with the large price rise.
There was a recovery attempt in mid December, but that failed, and is still in decline.
Note the "blow off Bottom" on 30/11, 01/12 and again today there is a large increase in volume, at what may be a bottom, indicating an iminent rise.
This is the ONLY positive thing that I can see at the moment, and will only be confirmed by a price rise tomorrow, with a close above 58.
Local resistance is at 54, and may well be tested tomorrow.Below that I see resistance @ 51.
Time will tell. Maybe the directors know something.Thanks for your efforts- there aren't many fundamentalists here!

Martin ( non fundamentalist)
 
#3
I told you I needed to learn this TA. Just thought that if the money flow graph is in the plus column then money was flowing in. Obviously the opposite is true. Oops

[This message has been edited by Max Damage (edited 10-01-2001).]
 

traderx

Active member
146 2
#4
There are some positive elements to VLK. The share closed today at a 21 day low which is reasonably good news. The bad news is that since its high on 18/9/00 at 87p when the euphoria about Bobs share purchases cooled off the price has followed a downward trend. However, it reached a low on 30/11/00 at 54.5p and broke out temporarily above the upper trend channel. Since then it has made higher lows but slipped back to close at 55p today. Taking a positive view, this could be a double bottom with the low on 30/11/00. One reason for optimism is that each time the share has fallen below the lower bollinger band the price has gone north. This happened on 18/10 @ 65p, again on 13/11 @ 60p and on 30/11 @ 54p. Tonight the share is again sitting below the lower BB. As you probably know Max share prices will eventually regress to the mean. BBs have tightened recently around the price, indicating a period of low volatility. This cannot continue indefinitely, especially for a stock with healthy volume. It is now breaking to the downside.

The 64,000 dollar question is, how far will it head south. There is a danger, (and I must consider this worse case scenario) of a profit warning and the share would dive. The reason I flag this up is because it is impossible to tell when a share is falling over the lower BB after low volatility, just how far it will fall. But I do not wish to be alarmist, I simply look at all possibilities. Alternatively, it may fall for one, two or three days then begin a rise as so many stocks follow this pattern.

LETS LOOK AT VOLUME: Today there was a volume spike with 721k shares traded. Yesterday 156K, and Monday 102k traded. Today BUYS 74,909k, SELLS 143,096, UNKOWN 503,199k. If as you say the two transactions of 200k each at 59p are buys then the share should rise tomorrow. I say ‘should’ because as you know that is not always the case. There is always the danger that SELLS are T+ delayed from days ago when price was higher. In this case I do not think so. WHY? Because if the volume spike today had been SELLING VOLUME the price would have fallen more that 1.5p. Perhaps someone with level 2 can confirm the nature of these trades.

Turning to the indicators. The indicators are dreadful and unless I missed something there is no divergence from falling price. On Balance Volume shows a significant fall today and Money Flow. That is in conflict with our volume analysis. MACD is falling. Likewise SD line has crossed down over SK line 6 days ago and fallen from positive value to minus 15.26 tonight. Stochastic is zero. I wish I could give you some hope Max. It is possible that the buyers will return tomorrow for VLK as they have done on the three previous occasions when price has fallen below lower BB but it is impossible to be certain. The trend is DOWN but it should bounce back above the lower BB. If it starts to fall again tomorrow it might be time to exercise a stop loss to be safe. You can always buy back in if it starts to rise.

If a PW was issued you would be helpless, at the mercy of the MM. In every other scenario the price will more than likely bounce within days.

Tx

This is not financial advice
 

ChartMan

Legendary member
5,580 46
#5
Max- rule No 1:
There is very little to be gained from the ABSOLUTE value of any indicator number- the important thing is the general slope over time. Exceptions are RSI and Stochastics, where there are "rule of thumb" numbers used- typically 32 for rsi and 20 for stochastics as useful "buy points".
Look closely at the slope of money flow, the general trend is down since mid September.
What are you using for charting?AIQ?

Martin
 
#6
TRaderX. you were right it bounced 4p today

Martin I have no TA software I have always invested on fundementals however the time has come to learn and a combination of good fundamentals and TA must surely pull the winners.

Vislink I hope being one. Good fundementals but TA should tell when to buy. I have more cash waiting. Some is already put in but more is there for when the TA I'm going to learn tells me to.

Gary
 

Uncle

Established member
671 2
#7
Gary

Interpretation of the Money Flow Index is as follows:

Look for divergence/failure swings between the indicator and the price action. If the price trends higher (lower) and the MFI trends lower (higher), then a reversal may be imminent.

Look for market tops to occur when the MFI is above a specific level (e.g 80). Look for the market bottoms to occur when the MFI is below a specific level (e.g. 20)

Trust this helps

John
 

ChartMan

Legendary member
5,580 46
#8
Looks like I was spot on.
History repeats itself, and VLK has lots of "blow off bottoms".Yesterday's volume spike was another one as suggested. It also closed above 58p today which was needed to break resistance.
It's early days yet, from a TA pont of view,and only "gamblers would risk going in.

Martin.
 
#9
Buys outnumbered sell 2.5 to 1 yet down 0.5p. A repeating patern recently that may suggest a stock hangover but once cleared the demand seems to be there to push forward
 
#10
610,000 bought today 30,000 sold. Any views on this abnormal level of buying today and 2 larger delayed buys?
 

Aaln1

Junior member
28 0
#11
Maybe a reason

Quote from WISI:
Vislink Plc (formerly Silvermines Group Plc) provides electrical services to the offshore oil and communications industries and manufactures and supplies electrical, environmental control products, broadcast and telecommunication equipment and printed circuit boards. Operations are carried out in the United Kingdom, Ireland, Europe, North America and Asia. During 1998
Multipoint Communications Limited was acquired and merged with Continental Microwave in the group's broadcast & telecommunications division. The group has reached an agreement to purchase the entire share capital of Advent Communications. The Group acquired MRC Ltd in 2000. Broadcast and telecommunications accounted for 66% of 1999 revenues and video technology, 34%.

for more check out :

http://profiles.wisi.com/profiles/scripts/corpinfo2.asp?cusip=C372FB770

Hope I'm not teaching my granny to suck eggs, but it seems to me that people are expecting vislink to move more into line with competitors performance and that takeovers are about to pay off. Another posibility is the high price of oil will bring a wave of activity into North Sea, enhancing that part of the business.
Cheers
 
#12
Will this help

FCC weighs whether to require digital capability for new TVs
January 20, 2001
Web posted at: 0946 GMT


WASHINGTON (AP) -- Federal regulators proposed Friday to require some new television sets be capable of receiving digital signals, a move to jump-start the lagging transition to the new technology.

Consumer groups and TV makers argue that a government mandate will drive up the cost of digital sets, even as forces of the marketplace are beginning to make them drop.

Digital TV sets currently are sold separately in various combinations and cost several thousand dollars. For example, a high-definition TV monitor that offers supersharp picture quality goes for about $2,500, plus a separate set-top or standalone tuner that costs another $1,000.

Digital television promises clearer pictures and lets broadcasters offer more channels and even new data services.

Broadcasters have long complained that digital TV sets are too expensive for most people. Without enough viewers owning such sets, broadcasters say they lack an incentive to upgrade their facilities and develop digital programming.

Broadcasters are supposed to return their analog channels by 2006 or when digital television reaches 85 percent of the market, whichever comes later. In the interim, stations will have two channels -- one digital, the other analog -- so people still can watch broadcast shows on existing analog TVs.

On Friday, the Federal Communications Commission said it recognized the problems of broadcasters and proposed a government mandate that certain new TV sets have digital capability. That could help boost production volumes needed to bring down the price, the commission said.

"Today, the retail cost of digital receivers is prohibitively expensive for all but the most enthusiastic early adopters," said Commissioner Susan Ness.

The agency suggested looking at ways to phase in any mandate. One option might be to impose requirements first on a percentage of large-screen TVs, since these typically cost more and the increase would be less noticeable.

TV makers oppose the commission's effort on the ground that it will add $200-$300 to the cost of each new set.

"We believe this proposal is anti-consumer," Jeff Joseph of the Consumer Electronics Association said Friday. "It takes away consumer choice."

Mark Cooper of the Consumer Federation of America argued in a letter to the commission that low-income consumers in particular would bear the brunt of the price increase.

The commission is likely to examine the issue for several months before deciding whether to implement any proposals.

On other digital TV matters, the FCC:


Reaffirmed the existing technical standard for offering digital service, despite a challenge by some who had argued that other standards offer better reception.


Granted a petition by a station in Stuart, Florida, which broadcasts only in digital, to be carried on area cable systems. Currently, cable operators are required to carry analog broadcast TV channels in their cable lineups so that cable customers can still see over-the-air programming they would normally get for free. In this case, the agency determined that the channel broadcast by the station, even though it is digital, still must be carried by the local cable companies there.
 
#15
I'll keep mithering on this one till someone tells me when to sell;)

Taken from the This is London website... today (29/01/01)
Bob Morton's Vislink stood out with an early rise of 3p to 69p ahead of a visit to the mobile communications group later today by a party of institutional shareholders arranged by broker Investec Henderson Crosthwaite.


Please indulge me after what has happened at SCi:)
 

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