from w-w-bb:

19.01.2007 - Total Rocketscience

The third and final company making up our Risk / Reward trilogy on shares for 2007 has so many investment negatives that most observers might not even give it more than a cursory glance. Although quoted on the London AIM market, it is based on the other side of the World, has reported revenues and cash flow of diddly squat and, more importantly, operates in an area of expertise so deep in boffinland that you need to be at least a 5 star techie to venture anywhere near it.

What originally persuaded us to give it a second look was the fact that legendary Stockmarket investor, Jim Slater, was pouring money into it via several successive rounds of financing. As we all know, Mr. Slater is a qualified accountant and hugely experienced corporate financier but clearly he is more at home in leafy Surrey than in the technologically rarified atmosphere of Southern California. However, he must have gleaned enough about what the company actually did to get extremely excited about it. In fact, by last Autumn, he had grown to like it so much that, to paraphrase the immortal Victor Kiam, he bought the remaining 51 % of the company that his vehicle, Original Investments, didn't already own.

The company in question was VIALOGY and, ever since it was fully reversed into Original just before Christmas, Slater's loyal band of followers have seen their highly speculative penny punt move on to the calculated risk category and been duly rewarded with a 50% shareprice improvement. We first latched on to this situation last April when we wrote a piece entitled The Cisco Kid ( see news archive ). To recap briefly, the company was set up by some brainboxes who had earlier worked together on supercomputing projects for NASA. Led by Dr. Sandip Gulati, the team appeared to have perfected software to detect and enhance extremely weak signals previously obscured by background noise. This may not seem particularly earthshattering to the layman but, apparently, the applications for this technology are not only revolutionary but almost limitless which suggests that an exponential rise in licensing income could well lie ahead.

Big news clearly travels fast on the Eastern seaboard because global behemoths Cisco and Boeing have already enlisted Vialogy to work on 2 major government inspired projects and these are just the ones that the company have been allowed to talk about publicly. As we reported in April, Cisco has contracted Vialogy to help with its IPICS programme which seeks to make sure that all emergency services and government agencies can communicate with each other quickly via computers and phones. The need to address this obvious requirement was highlighted by 9 / 11 when communications between different departments with different systems proved chaotic.

For its part, Boeing has recently confirmed that Vialogy has delivered a tenfold improvement in the accuracy and efficiency of the types of gyroscopes it uses in spacecraft and missile navigational systems. It is also known that both Cisco and Boeing see a major role for the technology in such areas as border controls and missile defence systems. Elsewhere a much smaller Texan company, Evolution Petroleum, is applying the technology to improving seismic evaluation of oil and gas deposits.

This initial clutch of applications is almost certainly just the tip of a very large iceberg that is going to float into view over the next few years and all that is required is a little patience. At todays price of 5.5p, Vialogy is valued at a mere 22m. To justify this valuation, the company would have to be earning say 2 million pretax. With cash reserves of 3 million and its heavyweight partners funding the projects it is involved in, Vialogy should be able to get through to breakeven without further recourse to shareholders. We would expect this stage to be reached sometime over the next 12 months. Thereafter, profits could / should escalate very dramatically as new applications and licensing income start to snowball.

On a two year view, shareholders could be rewarded extremely handsomely indeed. Vialogy is in so many ways akin to last weeks selection, CORAC. Both are now moving from the development stage to commercialization with the scales tipping away from blue sky risk towards the reality of cash flow. Both have mindblowing upside potential yet both have current shareprice action that makes drying paint look positively orgasmic. Although this presents an opportunity for latecomers, it is a frustrating byproduct of both companies involvement with highly sensitive technology and powerful, publicity shy partners. Moreover, the present lack of any meaningful numbers together with the sheer scale of future potential makes any serious stockbroker research well nigh impossible. All this will resolve itself in due course but, as they say in the Grolsch advert, all good things come to those who wait.

Share price breaking out now...

can the RHPS articlebe posted here

VIY

From RHPS,
===============
"What Vialogy has done is get hold of seismic data and reinterpret
it using QRI. It has made the bold and
extraordinary claim that by doing so it could locate oil with
far greater accuracy than has hitherto been possible. I need
hardly say that this was greeted with a good deal of
scepticism by an industry that has seen plenty of
innovations failing to live up their promises. But the
privately-owned US oil company Atascosa was prepared to
give it a go. It signed a deal whereby Vialogy took
Atascosas seismic data, interpreted it using QRI and then
told Atascosa exactly where to position its rig and what it
should find underground. For this Vialogy was paid a fee
but also insisted upon a share of any oil that was ultimately
produced.

No wonder that oil industry executives or at least those
who were aware of this extraordinary experiment were
watching with baited breath. Could Vialogy provide the
answer to the problem that has plagued the oil industry
how to locate reserves without simply drilling lots of holes
and hoping to get lucky?

In March we got the answer, and it was the answer that
should make Vialogy and its shareholders very happy
indeed. Atascosa found oil in exactly the spot that Vialogy
predicted. The reservoir was estimated to hold over two
million barrels of oil and under the terms of its deal with
Atascosa, Vialogy is entitled to receive 5% of the value of
this oil as it is pumped from underground.

That was stunning news but of course it could have been
a one-off. Could it have been a fluke? We did not have to
wait long to find out, because no sooner had Atascosa
drilled its first well based on Vialogys advice than it
embarked upon a second. The result was the same only
better! This time Atascosa founder an even greater
quantity of oil!

The importance of this can scarcely be overestimated. For
years oil men have looked for a better way of identifying oil
reserves, a way that will save them the billions of dollars
that are wasted drilling dry holes. Now Vialogy has come
up with the answer and the results achieved with Atascosa
has attracted huge interest. Other oil companies are
certain to want to deploy Vialogys QRI system and Vialogy
will charge for re-interpretation of seismic data and then
sit back and receive a share of any oil produced without
having to lift a finger!

RHPS Verdict:
I have seen plenty of exciting
scientific innovations in my time, but nothing to
beat this. The scale of the opportunity is
enormous, and so is the value of Vialogys
revolutionary QRI software.
High Risk BUY........"

Up again..thanks master RSI...EK's short is turning into an expensive mistake.

100% Buy on 30 August 09

VIY.LS - VIALOGY (LSE)

Composite Indicator
Trend Spotter TM Buy

Short Term Indicators
7 Day Average Directional Indicator Buy
10 - 8 Day Moving Average Hilo Channel Buy
20 Day Moving Average vs Price Buy
20 - 50 Day MACD Oscillator Buy
20 Day Bollinger Bands Buy

Short Term Indicators Average: 100% - Buy
20-Day Average Volume - 5245055

Medium Term Indicators
40 Day Commodity Channel Index Buy
50 Day Moving Average vs Price Buy
20 - 100 Day MACD Oscillator Buy
50 Day Parabolic Time/Price Buy

Medium Term Indicators Average: 100% - Buy
50-Day Average Volume - 4548525

Long Term Indicators
60 Day Commodity Channel Index Buy
100 Day Moving Average vs Price Buy
50 - 100 Day MACD Oscillator Buy

Long Term Indicators Average: 100% - Buy
100-Day Average Volume - 5181170

Overall Average: 100% - Buy

another good day and capped by the last trade being a 1 million buy

what is stirring this one, large volumes of shares traded, someone must be confident with the 1 million buy !

i did think it was the RHPS article last week, however now starting to think it cannot just be on the strength of that, as you ususally see some extra activity but not as much as we have seen

For someone to buy 70k on the back of an article must be very confident or has so much money that the 70k is pocket money to them. I haven't see this amount of volume for a long while for VIY. I really hope this is not another false dawn ! Come on VIY !!

and yet another 1 million buy just gone through this morning

RNS Barclays increase shareholding to 7.01%

going very well today, significant re-rating looks on the cards with this one.

Yes - nice to see it picking up at last!

Now waiting for EK to bail out of his short ...!??

I can't believe he's still shorting this ....he doesn't give in easily sometimes...

I am not saying he is right or wrong ( although hope he is wrong)

However he has been a lot more successful than most of us...........is he still shorting or has he taken the knock

To the best of my knowledge he is still shorting this.....he is a fantastic expert on the markets though, you have got to hand it to him...I hope he's wrong on this one...the sp at he moment says so...perhaps he's doing what he's done with GKP and that is shorting temporarily and going long at the same time...

Breaking all records at 7p looking good.

actually EK gets a fair number completely wrong, and VIY is clearly one of those
short hop skip and a jump to 10p+, on strong news you will struggle to buy these in single figures again.

i just came across a curiosity dated 10/10/07 .... they were assuredly stocks that someone had rated strongly for the the coming year

VIY ...... mid price then 9.25 ....... close of biz today 4.85

OXB ...... mid price then 35.75 ....... close of biz today 14.25
AZM ...... mid price then 80.0 ....... close of biz today NIL (bankrupt)
BLZ ...... mid price then 67.25 ....... close of biz today 48.0
BVC ...... mid price then 31.0 ....... close of biz today 52.5


good innit!
the only winner is BVC, which to give MRSI his due, he has always promoted.
The others are shit and worse!