.

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

Looks like this will tread water around the 1p mark.
Results will confirm if this is to recover or not, time will tell of course.
I feel this has become a stock for gamblers! IMVHO.
If they walk the price up they will increase the spread at the same time, just watch it happen, this will lock people in. This stock is very dodgy to deal in at present, lots of peeps getting pulled into the supposed bounce, which has not happened!
Be very wary punters, this is very volatile until all facts are revealed, and the last two TS's only give very vague indications, nothing of substance.

Be lucky all.

Hi all,

A summary of a few posts at AFN which are worth putting here for information (saves typing the same thing) but do your own research of course.

PapalPower - 28 Sep'05 - 10:42 - 22325 of 22342 edit

This is why the trading update was confusing and leads to uncertainty and that is the word "divest".
It was not "divest of" meaning to sell in total from the company as it was simply "divest" which can mean strip and sell a small part or a large part as you cannot know the meaning by the word divest on its own. A cunning confusion play ?
If they said "divesting of Seven Telecom" then its clear the whole lot is sold, but the simple "divesting Seven Telecom" means nothing at all until clarified later.
I would not have thought after saying so many times they have significantly invested in VOIP during the year that it is all to be sold, so it could be a simple divesting of the wholsesale business but again that means nothing, as they could divest of the wholesale business by selling of simply the deals in place but keeping the network, in that the business is no longer able to do wholesale as the deals/retailer contracts and sales structure for wholesale is sold off but it does not in any way mean the network is sold.
Natural that people see "divest" and think "dispose" and panic when in fact nobody has a clue to what level the strip and sell will be.
You can divest an office of its pencils or pens or carpet or whatever, but to divest of an office means to get rid of the whole office.
2LB is correct and the only way to find out is to make a formal enquiry of what is being divested from Seven Telecom as an interested purchasing party, but nobody will know for sure until they do it themselves and have it from the horses mouth.
If you read the AFX news release linked above they were very careful to say only selling "Seven Telecom unit" and selling "Seven Telecom MANAGED wholesale calling card business" and they did not say selling Seven Telecom.

koetser - 28 Sep'05 - 10:55 - 22330 of 22342
star,
The problem was before the last trading update there was a huge deramping campaign to bring the SP down, so when the trading update happened everyone paniked. Even when I read it the first time I saw it as they were selling Seven Telecom.
Also corporate Synergy on the day of the update upgraded the earnings for this year to 0.66p. There is a lot more going on than meets the eye that is all I know.

PapalPower - 28 Sep'05 - 11:08 - 22333 of 22342 edit
koetser that is true and something we will not know until a full and final statement. If CCR is doing well and with the spending on VOIP infrastructure if you sold off the wholesale side (deal/contracts etc only) and all its overheads and had a stripped down Seven just running CCR, with the greatly reduced overheads but higher margin business would earnings increase or decrease ? A lower level of higher margin business does more for earnings than a high level of low margin business, and with CCR what are the overheads ? Or is it nearly all automated ?

jdhurry - 28 Sep'05 - 11:23 - 22337 of 22342

DISINVESTMENT
1. A company... will divest an asset or subsidiary as a strategic move for the company, planning to put the proceeds from the divestiture to better use that garners a higher return on investment.
2. A company will likely not replace capital goods or continue to invest in certain assets unless it feels it is recovering a return that justifies the investment. If there is a better place to invest, they may deplete certain capital goods and invest in other more profitable assets.
3. Alternatively, a company may have to divest unwillingly if it needs cash to sustain operations.

Envesta's reasons for the divestiture of Seven Telecom are more 1 and 2 than they are 3. However, despite a cash inflow of around #2.5m in the year-ended 30 June (including profits), they bought the Airtime Group for #340k cash, as well as "significant investment in the new product areas" ("a better place to invest").

Just added 200K at 1.15p, I love the risk.

Corporate Synergy updated forecast

23rd Sept 2005

2005 PTP 1.1 million
2005 EPS 0.34p

2006 PTP 2.0 million
2006 EPS 0.66p

No change but reiterated on 23rd Sept.