.

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.

PapalPower, I have to say that I admire your conviction that EVS is worth the risk.
Your position here must be quite substantial if all your posts are to be believed!
Hope you have got a diversified portfolio, this could still go either way IMHO.

I don't understand why you want to continue to hold or buy what will basically become an expensive cash shell. Why not get into a quality telco like IDN which is making a profit and going to survive and grow ?

tangle well diversified and do not mind having some high risk ones, you either lose the lot of get a large gain.

moneyman I do not see IDN as a good bet at the moment for previously mentioned reasons, and the Investors Chronicle just recently put IDN under their "Wrecks to Avoid" category for the same reasons and that is Wilmot selling out his large stake.

EVS and the AFX report have never said they are selling Seven Telecom, they only say divesting the Wholesale Managed Calling Card business mananged by Seven Telecom and selling Seven Telecom UNIT (which bit?) (AFX) and Divesting Seven Telecom (but divesting it of what?) by EVS.

On my hope side I look into it like this, if you have 20 million sales at low 5% margin (wholesale) but getting rid of it you can grow retail have 10 million sales at 33% margin (CCR/Retail) the by divesting wholesale and moving faster to retail and VOIP your earnings and profit will go up on lower revenue. If that happens then my purchases of EVS will make me lots of money in the future, and if not then so be it.

EVS have not said ever they are selling Seven Telecom ! That is the confusion people are making on their own, nobody has said they are.

PP Hi,

I agree, moneyman is talking pish, EVS will not become a cash shell, they have a growing retail business with a very good margin, the wholsale part is being sold, and will raise a goodly cash sum, and 'several significant aquisitions' over the next 12 months' will give me a 10 bagger in that time.

Cheers,
PM

2LB -

Hi -

We note your post on another thread - should we................?

Kind regards

Remember DYOR

i'm with PapalPower on this . . . tried to discuss with Corporate Synergy but they refused to talk 2 me . . . . :-( the key for me is the 06 earnings and when they were last updated. . . . where did you see (PP) that they were re-issued on 23 Sept? If that's true then this is a ten bagger MIN . . .

annbar, you would all be wise to act asap, I think you Know what I mean ;-)
2LB is no fool!

kelvy the latest update date on Hemscott is the 23rd Sept. This is a risk play now and could totally down or have a recovery. Corporate Synergy are the one advising on the wording of statements and also put out very positive forecasts, either something is very wrong and they are taking people for a ride, or there are very big changes going on and we are not being told what they are.

At this stage I see no point in selling, just write off the value in your mind and keep holding through until everything is clear, whether that is 1 week, 1 month or 6 months. Risk is high / reward is high, but you can lose in this situations, always remember and keep in mind.

Risky or not it's on it's way up, with loads of buying ....

LOL !
PM

Morning PP,i have been away and looks like i have missed all the drama on EVS,
Looks like a little tick up,i have read all the posts i am quite alarmed but ever hopefull as i would rather loose my 600 thousand shares than sell at this price.

Hi Paul and Capetown,

I am more than happy to hold and have added some more around the 1p level. Does seem to be a lot of buying this morning in EVS ! The market works in mysterious ways, I have a holding in KIB they put out their results today and net cash is more than market cap and they are into their strong second half period in the run up to Christmas so............the MM's mark it down. Some things I will never understand.

Papalpower i saw in your post you added @ 1p ish,good on you and i would do the same if i had any more dosh,but am all tied up in evs,idd,thus,
On a bad day i always remember the doomsters on ashtead only to watch them go from 5pence to 140 pence today and yes i held and sold @99p,its all in evs now so i will hold and watch your posts like an eagle,
Good luck to all holders!

capetown in a case like EVS it can take a long time, as Paul has said if you are going to hold then hold and wait for the full circle of events, it may go through some more rough periods before it gets better, it may get rough and stay rough and it may not. If you are full with EVS then I would not add anymore, just in case, never put all your eggs into one basket. I may add more and may not, but for me if it goes to the wall then I lose the lot and not worried, others might not be prepared for that if it happened.

Nobody knows and there will be bulls and bears and people in the middle, just be happy in what you do and trade as you feel on your decision alone, be prepared for gains and also for losses until things are clear on which way its going.

PAPAL P,
I totally agree!!,
I made the decision to buy,and the profits will be mine to enjoy or losses mine to endure!!!!
CHEERS and good lucki

Capetown Hi,

I think the chances stand at 99% for a profit, 1% for a loss, that is good enough odds for me to keep my 575,000 shares, sit back and wait for the news to flow, and the price to rise :)

Cheers,
PM

PAULMASTERSON,
You have NO IDEA HOW MUCH YOUR POST JUST CHEERED ME UP!!

Even if that does not happen its so G O O D to be OPTIMISTIC!!


C H E E R S !!!!

Cleared one thing up after having someone check with Corporate Synergy yesterday, the EVS forecasts have now been removed according to CS.

Good, bad or indifferent still holding.

Papal,
Still marked as a buy on TD WATERHOUSE