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I was in here from the Cupid Days and sitting on a loss, but I kept faith and especially happy to see Bill Dobbie back at the helm. I seem to remember he bought the last of his shares at £115 and so a long way to go yet, but now looks very promising.
I have been watching this share for days. There was an overhang of 275k and the MMs tried everything to generate some buyers. Moves up to show there was demand, before conceding actually there is little demand and moving the price down in large moves, but to no avail and they made things worse, as there were more sales. Now on friday sales of 4m. Surely the price is going to fall in the short-term, but this will represent a great entry point for a share that has fantastic medium/long term potential. Forget the P/E and look at the PEG.
Gone up quite a bit already, but more to come. I always keep an eye on the charts and have been a holder for some time. http://www.barchart.com/opinions/stocks/VEC.LS
Presumably, you are including direct costs as well as the marketing costs.
I think you have interpreted my comments far too literally. What I meant, is that the fall in the share price (30% since the RNS) is far more than is justified by the half year report. Provided the debtor for the deferred consideration pays what is owed, the company is sitting on a lot of cash and near cash. I have posted before that even at the current rate of loss, it will be a long time before this is extinguished, even allowing for capital expenditure. Also a general market sell-off, as we have experienced this week prompts all shares on a downward spiral, but actually the volumes sold by Cupid holders are low, suggesting that all the market makers are going to do is fill their boots by pushing the price down waiting for the re bound. I also understand that the company holds a significant amount of shares in treasury, from its share buy-back program. These could of course be cancelled, thus benefitting the share price. The KPIs clearly show that this is a highly geared business and that putting on new subscribers will have a dramatic effect, but of course only the punters can deliver this with their view on Tangle etc. I also think the previous board was very slow to react to the changing market place, but the new chairman is now directing the revised board in the right direction. I have done my own research and I see no reason to sell, as this would crystallise a large loss.
Should of course read distributable reserves not reseeves.
The half year update was not that bad and barring a dreadful second half, I see no reasons why the dividend would not be maintained, the distributable reseeves are there and there is plently of cash to pay the £2.5m that it would need.
I used to set stop losses for small caps, but after some bad experiences, where they were triggered by large spreads following 'bad news' only to rebound straightaway, I abandoned the idea. Might have been useful here, a lesson relearned.
Should of course be cannot stem its losses.
As a long-term holder and someone who has averaged down many times, I find the latest share price fall unjustified. The market is saying that this company can stem its losses and that their product has been overtaken by others. I simply to not believe this, they were probably slow to react to a changing market place and to cut cost, but they seem to moving in the right direction now. Burning cash is worth 1.5p of the price for each million used; therefore is not an explanation given the net asset value per share. My only conclusion is that the shares are tightly held and it is just small private investors panicking. The volumes yesterday and so far today are tiny; I am sticking with the old adage, ‘there is no true share price without volume’. I hope I am right, but at this stage I am not buying anymore, due to large losses thus far, I last averaged down at 64p and now even that has halved!
Can anybody explain this valuation. The company RNS says 43p per share net assets. Suppose for the last qtr thay have made a loss of 1 million, that would have burnt through 1.5p, so down to 41.5p with business in for nothing. Madness, especailly as the asset valuation is actual cash and deferred receivables mainly. What about the dividend, a yield of 10.3% at these prices!
Good piece in this week's IC; comment on results plus changed their recommendation from hold (Nov 13) to buy now.
Looks to be in agreement with: http://www.barchart.com/opinions/stocks/CUP.LS I have averaged down quite a few times, byt still need £1.12, but we will see what the update brings. Having used online dating myself sucessfully and also provided professional services to a private company in this industry, I just see these businesses as cash generators having the luxury of no customer debt, but heavy spenders on software developement, as clearly this is a constantly changing market place due to social platforms. I remain confident of the future.
Chippenham, UK - 14 January 2014: Vectura Group plc (LSE: VEC; "Vectura" or "the Company") confirms that our partner, Sandoz, has today received Swedish marketing authorisation for AirFluSal® Forspiro® (formerly known as VR315), an innovative new inhaler for patients with asthma and chronic obstructive pulmonary disease (COPD).
See the German approval l of AirFluSal Forspiro, price should motor.
Good to see, even if I do sometimes wonder about brokers, after all Nplus1Brewin rated this a sell as recently as 24/9/13.
Climbing I have averaged down more times than I can remember, but still need £1.15. I am confident, after all Bill Dobbie, the ex CEO and joint founder, after he left Iomart, bought a lot at this price.
Good to see British Bulls are now backing this up-trend and advising readers to close short positions.
Okay, a bit of a disappointment, but at least the volumes traded should be more and I would expect the price to move up steadily as this share gets some financial press coverage identifying the lower rating compared to fellow media companies.
Thanks for this post. It is somewhat odd that there i nothing further on the company website regarding such a historic milestone in the company's development, other than to talk of the prospectus when available.