.

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!

Talisiii
Thanks for that,
Still learning!,
See a one mill buy just gone through,and sales equal to buys so far today,i am going to just hold these and hope that they will make a comeback,
Thx again

I am not sure it was a buy. Look at the time stamp on the trade. It was made more then an hour earlier than it was reported. The trade coincided with the drop in price.

PTH - It is not Mr Ling but Dr Ling! Not that it matters.

One possibility that crosses my mind is that the SP has been deliberately manipulated so that someone can buy into EVS at the right price. The TS was so badly worded that I cannot believe it wasn't deliberate. The resultant SP collapse was very predictable and presented an excellent buying opportunity.

Dr LING,capetown here,do you really think so?,as i am definateley a novice and i could have wordrd a better ts than the one we got!

I thought this board was well respected at evs,

Good to see as many buys as sells today,but what has happened here is enough to stop me trading forever,

In laymans terms what do you think the outcome will be when we get the figures?,and would you not think the directors would buy some at this price to reinforce confidence?

Capetown - I'm afraid that when money is involved there are no depths that some folk won't stoop to in order to get some. The TS was so dreadful that I can only think it was deliberate. Any 'advisor' looking at it must have raised doubts!

Given the management the future must be uncertain but the company is fairly soundly based and could do well. EVS should produce another RNS to rectify their appalling TS as soon as they can and then the situation may become a little more clear.

Dr Ling

If it doesn't matter why mention it?

By the way, many thanks for the advice, always much appreciated.

Can't say I am surprised this has tanked, did advise against buying some months ago. Andy S, we made a good decision!!

pth

I find it amusing that people are quoting PE ratios when in fact a large dilution is very likely which will dilute EPS and change all forward PER.

A lot of top analysts are saying do not wait - SELL - I wonder why ?