.

Hi Paul,

Lots of good researching there and comment.

I thought it funny today the Investors Chronicle did an article on penny shares, one of the Wrecks to Avoid was.................. IDN (no mention of EVS).

1/ They said the newcomer has not effected their revenue at all. They said that from the 1st of July their own aggressive cash collection policy had affected revenue. Simple, reduced revenue but more cash in hand. By their statement you have to assume this new hardball cash collection policy has worked at the expense of reduced revenue. Better cash in hand and lower revenue than big revenue and no cash. Question, do they still have a cash problem ? Maybe not if the Q1 hardball cash collection/loss of revenue play worked.

2/ From the last 2 paragraphs the equity raising is two stage, first stage appears not to be a placing, but simply divesting Seven Telecom. Second stage is acquisiton from vendor shares and placing(s).

3/ From point 1 you can see they see no future in calling cards, if they leave it at the niche level of say 9 to 10 million revenue a year they can make profit, anything over that and the cash collection cycle kills them. So they are reducing Seven back down to lower revenue but cash in hand profitible before selling it off, if you cannot grow it sell it to someone who can.

4/ Inside information, yes from the 1st of July people might have been laid off as they cut Seven down to size, and those people might have leaked the situation as at July. Things have changed though.

Depending on what they can sell Seven Telecom off for (after downsizing it) the end result might near to a cash shell with a reasonable amount of money in it and then accelerate into a modified phase 3 of their plan ?

Its not that bad a trading update, but its misleading I think. The shorters have had their fun and now results and a real statement of situation might clear the air. I will not add before results and crystal clear statement as the two Kevins did mislead in my opinion with the first trading statement.

Cannot see the admin call being correct from what they said in the update, they are downsizing Seven and losing (deliberate) revenue to get cash back and make it profitable with a realistic cash collection cycle and then selling it, its what I read.

".........The Company's actions to secure cash collection have however adversely impacted revenues in Q1 of the 2006 financial year and we expect this to continue.

That sounds like they have been pressuring their customers to pay outstanding bills sooner or be cut off and the customers have taken their business elsewhere.

Haystack yes but doing so and losing revenue allows the cash out to cash in cycle to catch up with itself. A serious loss of revenue July would leave them sitting on a cash pile by end September. Then divest Seven Telecom and they could be sitting on a large cash pile (plus of course whatever they said they signicantly invested in on the VOIP side)

Just an idea.

DB66 lets hope for some clarity at the results and then a rebound, I hope so anyway.

I have added one of my longer term punts on a new thread. This one will not do anything on its own, but will move as more and more news comes in to confirm their strategy is working, as it looks like the turning point for this one is 2006 so am building my stake at the present low prices.
Have a read I think it should be a good long term punt, something you can tuck away for a couple of years, but after EVS I can understand if you find it not so attractive !

http://www.moneyam.com/InvestorsRoom/posts.php?tid=8727#1

Haystack are you softening your tone or we have an imposter at AFN ?

haystack II - 23 Sep'05 - 19:13 - 21636 of 21649

The whole episodes of the TS and TU have been bizzare in the extreme. They are both at odds with their own and broker estimates. The tone of both is one of a lack of confidence in the future. If it does turn out to be as bad as investors think (I am not convinced that it is that bad though), then something catastrophic must have happened during the last 6 months to change things. A major fall in revenues that was irrecoverable would seem to be the only reasonable scenario.

I have heard that both the calling card and wholesale capacity markets have undergone major changes recently in terms of profitability due to reduced margins and numbers of players involved.

I always though that this was and over valued stock, but not to the extent of such a fall in price.

haystack

It was me. I haven't thought previously that EVS would go bust. It was just over ramped and over valued. I would expect the busness to continue but at a slower pace and a lower value than previously. Anyone buying now might be buying at closer to its true value. I don't see the CCR part of the business making much if any profit. I suspect that they have other plans if they can sell Seven. The trouble is that there is over-capacity in that area and they may have trouble selling it for a decent price.

Hi All,

All the stocks I invest in are based ot the fact that over the next few years they will be ten baggers or better, EVS is exactly that.

Once Seven is divested, EVS will have a lot of cash,(the price could trebble on that deal alone !) some of that will undoubtedly be used to assist cash flow, but most of it will go towards the first aquisition, which IMVHO will happen before christmas, and may well require a placing, which the institutions are VERY happy to fund, the price will then be doubled or trebbled from this level easily.

In 12 months, EVS will have divested Seven and completed several 'significant' aquisitions, and the value of my 575,000 shares, will be 15p or more, that will give me (and anyone else buying now !) a 10 bageer.

I'm happy with my investment in EVS, and anyone coming here telling me it will be worth less or worthless, is talking absolute bu11sh1t ....

Cheers,
PM

Hi Paul,

Agreed that the fall is well overdone, and things could change very much for the better very soon. Will be interesting to see results day, if its GOOD results and statement could see this rise very very quickly as the MM's will want to sell at above the price they got them at earlier all the way down. Watching with interest ! And ready to dive in to add more on results day if the statements are good !

paulmasterson1 - 24 Sep 2005 13:59 - 1451 of 1452


Hi All,

All the stocks I invest in are based ot the fact that over the next few years they will be ten baggers or better, EVS is exactly that.

Once Seven is divested, EVS will have a lot of cash,(the price could trebble on that deal alone !) some of that will undoubtedly be used to assist cash flow, but most of it will go towards the first aquisition, which IMVHO will happen before christmas, and may well require a placing, which the institutions are VERY happy to fund, the price will then be doubled or trebbled from this level easily.

In 12 months, EVS will have divested Seven and completed several 'significant' aquisitions, and the value of my 575,000 shares, will be 15p or more, that will give me (and anyone else buying now !) a 10 bageer.

I'm happy with my investment in EVS, and anyone coming here telling me it will be worth less or worthless, is talking absolute bu11sh1t ....

Cheers,
PM

................................................................................................................

You may call me a basher PM, but I'll give you odds on that post will come back to haunt you,just don't want too many people to lose their hard earnt dosh in this fiasco!
I would imagine the SP should have some upwards movement prior to results, mainly due to people like yourself, who are pumping this co expecting some sort of miracle turnaround.
I would suggest anyone with holdings to get out as soon as poss on any upward trend, and reduce their losses.
The best way to play this is to wait for the results, if the rumours are true this will fall another 100%, if not they will still be cheap to buy!

Personaly I believe they have not reached bottom.

As always imho/dyor.

Tangle Hi,

When I sell a stock, thats it, whether I make or lose money, I don't come back to the BB's and tell everyone how good or bad it is.

On the other hand, you lost money so your back here all bitter and twisted and bashing the stock, and your going to cost people money if you convince them to sell at a loss, before Seven is sold and 'several significan aquisitions' are made.

Anyone reading my posts can see that I have researched the company, and believe they will go up when Seven is sold and 'several significan aquisitions' are made, because the poor cash flow part of the business is being sold, and new aquisitions will add a load of value to the company, they could buy ANYTHING, just like YOO did last year, they went from 500k turnover a year, to over 100m a year turnover, ONLY by the aquisition of DITG, and they are soon going to announce a profit, but your statements for the price going down, have no substance other than your own bitter opinion.

IMVHO you are wasting your time telling people to sell now, and if a stock falls 100% it's worth nothing, so it can't possibly fall 'another 100%' so that statement tells us how much you really know about share dealing too .... "The best way to play this is to wait for the results, if the rumours are true this will fall another 100%, if not they will still be cheap to buy!"

Cheers,
PM

Some sensible posts that we agree with.

Hi PM, you have obviously done your research on this , as you have done on YOO!
Whilst I completely agree with your optimism with regard to YOO, I must say that same optimism as regards to EVS is very misplaced IMVHO.
There is too much uncertainty with this co, the last two TS's are very ambiguous and leave too many unanswered questions. Why would they do that?
They do not contain enough tangable facts as to how they are going to turn themselves around, not one metion of CCR at all!
Yes I sold out, but if I had stayed in my losses would have been massive at todays price. Thank heavens I got the jitters from the last but one TS.
I had been in these since the 2p days last November, gradually adding when funds permitted, I thought EVS were the "bees knees" until the last but one TS.
PM I genuinely applaud your enthusiasm and research, but my personal gut feeling, and that is all it is, feels that you are wrong with this one.

Hopefuly I am wide of the mark as i no longer have an active interest here , other than to see how it all pans out.

Good night and good luck.

Tangle Hi,

A very reasoned post, thanks.

You say "They do not contain enough tangable facts as to how they are going to turn themselves around" .... they say they are going to get rid of the poor cash flow burden of Seven, that part of the business that been eating the capital, the rest is OK. Also they are going to make several significant aquisitions. That is how they are going to get the business back on track.

Cheers,
PM

nasty old start to the day can see it falling thru the 1p barrier i've written this off
for the time being too much energy gone into this

check out PWR/WVR/EEN all report on wedneday could be really good day or a very bad day here hoping ..........

Gordon Hi,

I won't look at selling any EVS until Seven is gone and the first aquisition is purchased.

EEN is very out of favour with the market, even though they are worth a lot more (read www.lemminginvestor.com editorials ), ever since a load of people lost money in them several years ago, and the market takes a long time to forget !

Cheers,
PM

Got myself 200K at 1.095 this morning but I like risk :)

start of a good day or dead cat bounce ?

agree with your een comment but think they may be turning the corner

Has EVS found a buyer for Seven, or completed a placing for an aquisition ?

All the buying is pointing to a leak ....

Cheers,
PM

Hi Paul,

Could be something has been leaked. Large MM buys and they do not need to do that when bouncing it as a 100K would do.

Could be results and news tomorrow morning then.

PP Hi,

MM buys total 4,650,000 in 5 trades today, starting at 10:31, and finishing at 10:47, and virtually each time they bought there was a price hike, so as I said before, they could well have been leaked news, MM's are always the first to be leaked news, and even if there is no news, they will walk the price back up anyway.

Cheers,
PM