.

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 ?

...and I wonder why you want everyone to sell, ii. Which analysts, and where are they saying it? Please paste to the bb, so we can all read them! (I won't hold my breath).

Well said, Taquilla. I'm afraid EVS are going to have to do something very quickly, however, if they are to restore any market confidence in their company. The TS last week was an absolute disaster and I just cannot imagine how they managed to publish such a damming statement. Given that they did what chance do they have of putting it right?

I hope EVS take note of what happened to TTL - they need to calm any market fears very quickly indeed.

unionhall - 29 Jul'05 - 15:38 - 14754 of 14880 edit


Folks,

I've just had a good discussion with Kevin McGovern.

First of all the company are surprised and disappointed by the market reaction to the Statement. It had been reviewed by the usual advisors etc and noone had foreseen the reaction.

Financials first -

He is very clear on the top line, gross margin has some wiggle room in case of the audit throwing up adjustments and the bottom line PBT which they refer to as market expectation is the 1.1m and again they are conservative to ensure they meet this target.

The significant investment spoken of is not capitalised but expensed in getting to the 1.1m PBT target.

Working Capital issue is arising simply from the business growth and the differing terms to debtors and creditors.

It will be dealt with if possible in line with any acquisition in the six months to December.

They are acutely aware of shareholder value and are looking at the various funding options.


They are not planning growing the Wholesale element of their business further but this is based on current runrates (my estimate approx 22-24m pa). They believe they have achieved the level at which they can retain adequate margins etc.

Acquisitions if they happen will be on the Retail side and they are talking to a number of targets at the moment as the RNS mentions.

The VOIP confusion is around inward vs outward traffic. They have appropriate VOIP infrastructure for outgoing international calls but are building for a cost-effective full UK coverage to BT etc when BT's 21st Century Network comes on line. (Cardiff will be first city in March 2006 with full roll-out by 2008)

To help investors understand this he is hoping to put some slides on the website.

The company are happy with the CCR roll-out but being a conservative he mentioned it is still in its infancy so impossible to trend at this stage.

UNIONHALL,
Thanks for the post,
You should be employed by them,
Dont you think that the T S was shocking?,if they care about their investors then i believe a better ts could have been releases,i do not understand why they are suprised at the markets reaction,are you?,

I will hold my stock in this company but the minute it reaches the price i paid if ever i am out of here as i have no faith in this management after the TS,

Your post has installed some confidence for me,but it is sad that i have taken comfort from a post like your as opposed to one from the board,the people i trusted with my money,i know its always a risk and i only blame myself for investing so heavilly into evs,what is your view on the fact that 7million shares were purchased on friday?,
MANY THANKS

Capetown - You have my sympathy. I am nursing some heavy losses in EVS and I am pretty fed up with the nerds who released the TS last week. Could they really have thought that it wouldn't upset the market?

If you read what happened to TTL it is quite frightening. They were issuing very upbeat statements right up to the point where they went bust. I gather there was some problem with money inside the company which didn't help.

I am hoping that EVS will retrieve the situation even tomorrow by issuing another RNS. Quite why it took them so long to release the TS I really don't know. It could have been released weeks ago. Something would seem to be happening but I have no idea what it is.

Dr Ling,
I agree with you,
If they are suprised at how the market has reacted,
Lets see some director buying?
Lets have an rns?
Its not rocket science.

Agreed!

I have just been 'phoning the Far East using the EVS number and for the first time I had real problems with the call. I had an echo and my voice would be cut off every few seconds. The person at the other end had the same difficulties. Does anyone know if this is a typical VOIP problem? Could EVS be in trouble? The TS was very suspicious, incredibly badly worded and very slow.

It is a very common VoIP problem and not just via EVS. Once the call leaves EVS's VoIP infrastructure is routed via other carriers usually via a least cost routing path. The only way to avoid this is to use a major carrier who has a complete world wide network of their own or close to it and this is pretty rare (AT&T, MCI, Primus Tel, Telstra and a few others).

My thanks! I see you are personna non grata on the other board!

Unionhall - thanks for your post. It has been a surprising reaction to the TS. The share price must now be oversold yet today bring another string of sells. Capitalisation of 7.7m and profits of 1.1m to give a pe of just 7. The stock must be getting extremely good value at these levels.

Ling - I agree with you, that the TS could have been more diplomatically written. Appears to have been knocked up without too much thought. Although the reaction to it could not have been seen. They will be much more careful with the final results statement, hopefully to say that the worries this time around have or will be sorted with no problem. Too much this time around has been concentrated on the negative side rather than the positive side.

The share price is going to be in for a rough time short term though. I hold a lot of these and like gordon, am going to wait for the price to recover. One would be daff to sell so cheaply at present as these should recover. Next January to March we should see 4 to 4.5p at least when sentiment changes. I will be watching the trades screen but it could be bad reading. I am going to limit my posting here to no more than one a day. After the initial bout of selling today, I expect to see the share price stablise, and as punters reassess EVS we will eventually see buyers return. The price now is too cheap to sell, and I believe that this is now the new bottom from which the price will eventually recover. After all EVS is still making profit. Punters are forgetting this important point.

The management really are concerned are they not!!!!

It is interesting to reflect on how much abuse I received when I suggested 3p as a short term target for EVS and 2p as a longer term one. The price is currently 2.75p. I did point out several reasons for why this would happen but the rampers just tried to shout me down.

A salutory lesson in not listening to rampers.

I emailed Kevin Jauncey this morning and it was kicked back at me by the system! Presumably they are up to their neck in emails and have blocked them? There are some slight tick ups!

Hey Dr LING,

What a F..K up

Capetown - we may have hit a bottom at 2.7p on the bid. There are signs of a 'bounce' and mainly buys going through. I would not like to say we have hit a low but we might have! We could be nudging 4p on the bid by the end of the week if the present 'buys' are maintained. At this time I am losing very heavily. I hope Kevin Jauncey is doing something - he should be.

Dr ling take comfort u are not the only one loosing!,

We can but wait and see,

cant believe no statment,even if to calm investors!