.

Sarcasm, PTHolden! I am sure the Web will explain a Rights Issue for you. If you really don't know then you should stay out of the stock market.

Not sarcasm at all Mr Ling. Always willing to tug my forelock and bow down before superior knowledge. Please enlighten me, or don't you know yourself?

pth

ptholden
A rights issue is where an existing shareholder has the right to buy more shares at usually an advantageous price. It is to rase more money. It does look as though there will be one. It will more likely that it will be an open offer though - subtle difference.

PTH - if you wish to be serious I will make some comments. A Rights Issue is where the company give a shareholder the right to buy their shares at a discount to the existing price. Maybe 1 for 5 or some such figure. This means that for every 5 shares you hold you can buy one more share at a lower price. Rights Issues don't always work if the SP is going down fast I should add. You don't have to take up the Rights and they can be sold because they have a value - all dependent on the SP not collapsing. There isn't much point in taking up a Rights offer at, say, 3p on EVS if the SP on the open market is 2p. Management will usually try very hard to make sure their Rights offers don't suffer this fate but it can be tricky for them.

An open offer, also known as an entitlement issue, is an offer made by a quoted company to its shareholders inviting them to buy new shares in the company at a set price which is normally lower than the current market price.

The purpose, as with a rights issue, is to raise new capital for the company. Unlike a rights issue an open offer cannot be traded or sold on by the shareholder - usually, if you do not take up your entitlement, it lapses. Because of this, when an open offer is announced, you will be allocated sub shares, not nil paid shares.

The other way that open offers differ from rights issues is that sometimes you will be allowed to apply for more than your strict entitlement under what is known as 'excess application'. Shareholders tell the company (or its registrar) how many shares they want to buy, including any excess shares, and pay money to cover their application. The company, before announcing the offer, will have determined how much capital it wants to raise, and the number of shares it needs to sell in order to raise the amount. When it has received all applications, it will either scale them back (if more shares have been applied for than it wants to sell) or it will issue all the shares requested (including any excess applications). If a shareholder's application is scaled back, he or she will be repaid funds for the shares not actually issued.

Of course it could be a placing of new shares with an institution.

Does anyone know what authorities EVS has at present for issuing new shares and for how many?

H -

You know a lot about the company - you say - so perhaps you can tell us!

EVS could certainly go that way.

On reflection, I would think that any authorities would now be invalid due to the capital reorganisation. It would probaby take an EGM to grant a new authority.

Huge downtrend today...SELL

nice start today NOT
no Intention to sell will live with the losses for the moment and take up any rights
their still a decent company and have turned the ship around just hitting some
choppy waters

hope they will sell formjet before they come to shareholders

cash flow stmtnt will be very interesting this time around

Goron,
Like you i will also hold,no way am i going to sell at a 50% loss,what i dont understand is why such a huge price fall when trading statment states up 75%

The EVS management are very, very stupid. Their TS was incredibly badly written.

I think i will hold this for the time being as well
considering toping up at 2.9 but not sure since support is at 2.24
any thoughts guys

LING i agree with you,

It was not a well written ts,

Maybee he knew what he was doing when he sold some to fund his house purchase back in may i think,

Will be interesting to see if they top up now.

Having bought into EVS at 3p and sold out at 6.9p a while ago, I have to say they now look extremely good value.

Though following their trading statement, I have to wonder if they are in net profit at all for the current financial year. With a 75% increase in turnover and a 100% increase in gross profit their margins have improved. But the question is, what are their admin and other expenses for this year? The prelims should reveal all.

I will be jumping back in at some point, but it looks like the bears have hold of it for now.

The problem with the TS is that on the one hand EVS is talking about revenue increasing by over 75%. On the other hand they say that a major part of their core business (prepaid calling cards) "continues to be a volatile sector" and that they "Our strategy is not to grow this business further".

One is saying that we have had a 'good year' and the other is saying that it can't last and we had better do something else pretty quick or we are going to be in trouble. CCR looks a desperate move to me. I am sure it will profitable fairly soon, but I don't think it will generate enough profit to replace the loss in profit in the core business. I don't think that EVS thinks so either which is why they are talking of acquisitions.

Don't forget that share prices usually fall for a company making an acquistion. EVS is a good example. When they bought part of Severn their share price was flat for a while and then fell. When they bought the remaining part of the company their shares halved in price. The market doesn't like the unknown and a takeover can never be evaluated until at least the next full set of results or later if the results are too close.

If PBT is in line with market expectations as they say in their TS, then we are looking at a PE of 8 for the current year. That moves to a PE of 4 next year if they can continue to perform.

tallisi,what does that actually mean?
Would appreciate your knowledge

Capetown, it is a measure of profitability of the company relative to it's price.

For example, if you had a company that was worth 10m and it was making 10m profit after tax every year, then you would have a price/earnings ratio of 1 and be onto a good thing! If you had a company that was worth 10m and was only making 100,000 per year, then you would have a PE ratio of 100, which is a worse return than you could get on most bank accounts. The second company would only be worth owning if you expected some signigicant profit increases in coming years.

EVS shares are currently at 2.83p each and the expected earnings for the current year are 0.32p per share. So the current year's PE is 2.83/0.32 = 8.8. That is better than most bank accounts, and since we have fairly solid expections for furture growth, it is a pretty good buy. But the SP may well fall further yet!