from w-w-bb:

19.01.2007 - Total Rocketscience

The third and final company making up our Risk / Reward trilogy on shares for 2007 has so many investment negatives that most observers might not even give it more than a cursory glance. Although quoted on the London AIM market, it is based on the other side of the World, has reported revenues and cash flow of diddly squat and, more importantly, operates in an area of expertise so deep in boffinland that you need to be at least a 5 star techie to venture anywhere near it.

What originally persuaded us to give it a second look was the fact that legendary Stockmarket investor, Jim Slater, was pouring money into it via several successive rounds of financing. As we all know, Mr. Slater is a qualified accountant and hugely experienced corporate financier but clearly he is more at home in leafy Surrey than in the technologically rarified atmosphere of Southern California. However, he must have gleaned enough about what the company actually did to get extremely excited about it. In fact, by last Autumn, he had grown to like it so much that, to paraphrase the immortal Victor Kiam, he bought the remaining 51 % of the company that his vehicle, Original Investments, didn't already own.

The company in question was VIALOGY and, ever since it was fully reversed into Original just before Christmas, Slater's loyal band of followers have seen their highly speculative penny punt move on to the calculated risk category and been duly rewarded with a 50% shareprice improvement. We first latched on to this situation last April when we wrote a piece entitled The Cisco Kid ( see news archive ). To recap briefly, the company was set up by some brainboxes who had earlier worked together on supercomputing projects for NASA. Led by Dr. Sandip Gulati, the team appeared to have perfected software to detect and enhance extremely weak signals previously obscured by background noise. This may not seem particularly earthshattering to the layman but, apparently, the applications for this technology are not only revolutionary but almost limitless which suggests that an exponential rise in licensing income could well lie ahead.

Big news clearly travels fast on the Eastern seaboard because global behemoths Cisco and Boeing have already enlisted Vialogy to work on 2 major government inspired projects and these are just the ones that the company have been allowed to talk about publicly. As we reported in April, Cisco has contracted Vialogy to help with its IPICS programme which seeks to make sure that all emergency services and government agencies can communicate with each other quickly via computers and phones. The need to address this obvious requirement was highlighted by 9 / 11 when communications between different departments with different systems proved chaotic.

For its part, Boeing has recently confirmed that Vialogy has delivered a tenfold improvement in the accuracy and efficiency of the types of gyroscopes it uses in spacecraft and missile navigational systems. It is also known that both Cisco and Boeing see a major role for the technology in such areas as border controls and missile defence systems. Elsewhere a much smaller Texan company, Evolution Petroleum, is applying the technology to improving seismic evaluation of oil and gas deposits.

This initial clutch of applications is almost certainly just the tip of a very large iceberg that is going to float into view over the next few years and all that is required is a little patience. At todays price of 5.5p, Vialogy is valued at a mere 22m. To justify this valuation, the company would have to be earning say 2 million pretax. With cash reserves of 3 million and its heavyweight partners funding the projects it is involved in, Vialogy should be able to get through to breakeven without further recourse to shareholders. We would expect this stage to be reached sometime over the next 12 months. Thereafter, profits could / should escalate very dramatically as new applications and licensing income start to snowball.

On a two year view, shareholders could be rewarded extremely handsomely indeed. Vialogy is in so many ways akin to last weeks selection, CORAC. Both are now moving from the development stage to commercialization with the scales tipping away from blue sky risk towards the reality of cash flow. Both have mindblowing upside potential yet both have current shareprice action that makes drying paint look positively orgasmic. Although this presents an opportunity for latecomers, it is a frustrating byproduct of both companies involvement with highly sensitive technology and powerful, publicity shy partners. Moreover, the present lack of any meaningful numbers together with the sheer scale of future potential makes any serious stockbroker research well nigh impossible. All this will resolve itself in due course but, as they say in the Grolsch advert, all good things come to those who wait.

Oh yes! Reckon that's the end of the single-figure days. It should breach 12p quite quickly now. Next hurdle will be 16p, looking at the charts.

I actually meant 12p next week, but today would be nice!! :-)

there's plenty on board just when you haven't a clue about what the company is really doing there isn't much to say :-)

just remember cisco and boeing links. homeland security, border controls, electronic surveillance, airport security etc etc the potential contracts are beyond our estimates--all we need is patience. IMO.

Absolutely--well worth a punt

One of the regulars over on the other side, reckons there's some big news coming this week. I wouldn't normally post something like this, but he was only one day out on the last RNS.

DYOR

could well be right I too feel something is brewing.

From WorldwideBB today

10.05.2007 - Get VIALOGY on your radar.

Embedded deep within the London Stockmarket there is probably only a tiny handful of shares which are capable of turning out to be a portfolio maker by multiplying 20 or 30 fold over the next few years. Back in 2001, for example, who would have thought that Domino's Pizza were destined to rise over 25 times from 10p then to 255p today ?

In retrospect, it is not, of course, too difficult to have forecast the relentless rise and rise of the takeaway pizza - mainly because it is a visible and easy to understand facet of modern day life. The minute the layman steps into the realm of advanced technology, he or she has to rely largely on reading between the lines and using a bit of imagination.

Unfortunately however, if one is looking to pinpoint a company capable of " multibagging " on this scale, it is necessary to look beyond oil, mining and mass catering companies. In an effort to keep things as simple as possible, we have endeavoured to find an comparable analogy to what we believe one of our 3 shares for 2007 has to offer.

We first mentioned VIALOGY about a year ago ( see News Archive 28.04.06 ) when they were still called Original Investments and trading at 5 p. We identified this AIM listed but Californian based company as a potential multibagger and, so far, the stock has more than doubled to 11 p. Now, more than ever, we believe that the potential is astronomic and that the journey has only just begun.

Watson - Watt first patented Radar in 1935 and later that year demonstrated that aircraft could be detected at distances up to 100 kilometers. Now, in 2007, Gulati's Vialogy are working for the US government on devices to detect concealed explosives at distances of up to 100 meters. By the end of 1937, the British government had ordered and rolled out 23 radar stations and many would argue that this ultimately won the Battle of Britain. It is interesting to contemplate how many of those close to the project then foresaw that 70 years later every commercial aircraft and shipping vessel in the World would carry a radar device.

Vialogy is probably now where radar was in 1936 but there are 2 very distinct differences between the two groundbreaking technologies. First, and most relevant to us, radar was a hush - hush project involving a private individual and the government of the day and was, secondly , essentially a one trick pony. By contrast, Vialogy belongs to a public company with far greater visiblity and is also far for being a one trick pony.

From the announcements that have already been made, we know that, apart from helping to detect hidden explosives from considerable distances, Vialogy can be used to improve the efficiency of missile gyroscopes tenfold. It can help embedded sensors monitor the health of aircraft fuselages and it can help detect hidden deposits of oil and gas. It should greatly improve the performance of tagging devices being introduced by the logistics industry to monitor the location of pallets and containers and it will help mobiles, laptops and other media devices to communicate with each other. It is also being incorporated into systems for protecting borders from illegal immigration. The list of present and future applications involving prestigous co- partners such as Cisco and Boeing goes on and on.

At 11 p per share, all this potential is currently valued at some 44 million. It may be a year or more before all these contracts and joint venture projects translate into profits but the potential when it is realised should be stupendous.

stupendous indeed-I'm tucking mine away long term! excellent find thanks for posting it.

Moneyplus, I'd like to take the credit, but it came from aposter on the other side. ;-)

The sp. is going into orbit today.Could it be linked to NASA's announcement that they are to launch a space telescope to replace "Hubble" in 2013?

ViaLogy involved in gyroscopes!

andromeda, that's small fry comapred to VIY's potential. People are finally starting to cotton on.

Can't help but feel there's something big around the corner after all of Friday's buying. Fingers crossed.

DYOR

This is the hot one , and it could double at this rate .

And the rest. Over 10m traded today. Just need a positive RNS and it's going to fly. Will be good to see some concrete revenue figures when the results are released.

Good potential , and they will bring something special to the market .

certainly looks worth investigating as company and management look as though they know what they are doing, which is a lot more than can be said for a stack of the spivvy stocks that are touted around here!

rsi is heavily overbought (again!) but there looks to be plenty of impetus behind the rise

As always,
red = 25 dma
green = 50 dma

Thanks cynic , I am in on this one because i think its got big potential .

think you may be right, but need to read the thread etc .... currently recovering from those tough 3-4 days golf ..... mentally and physically exhausting, lol!

Still blue sky at the moment, but oh so happy to hold.
8-D