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.

or got off with whom even!

poor old yukky, but good news for his grandfather.....looks like he did get off iwo jima afrer all!

VIY going up nicely

no doubt yukky will be along to give us his pearls of wisdom
I do hope he put some money on his views-or perhaps he doesn't hold his views that strongly?
consistently wrong to date, not a bad track record
be interested in any more 'gems' from Yukky, so I can bet the other way!
LOL!!!!

over to you, my friend yukky, take the floor!!!

Yukky says they will have no sales for 18 months ! , VIY are saying , We are anticipating worldwide demand for the products ,
I wonder who will be right !

My money's on VIY!

well, they already have some sales, going by the last report!
looks like yukky got it wrong again-oh dear, time to douse those on fire shorts of his again, assumimg he has got the balls to short the thing in the first place!

Come on yukky, don't be shy, whats your short position on VIY?

im not shorting this, but i did predict the fall from 13p-8p, this current rise is nothing unexpected, its still on course for 6p, nothing goes down in a straight line

great stuff, yukky
you predicted a fall but didn't put any money on it!!!!
one wonders, therefore , why you post here.....ir could it be you are telling a few porkies!

anyway, please give us some more of your star tips, long or short, as you seem to have the midas touch in reverse

your pal
Nobby

notlob your funny guy, it goes from 15p to 7p and then up a few pence and you think its some kind of huge rise, this may be 50p one day but it will be 6P first
BANZAI

Yukio, you seem to have raised the bottom from 4p to 6p, thats a 50% increase.

More importantly, for anyone thats intrested a similar company with excellant results is Univision, ticker code UVEL. I have just created a new thread.

yukky
I've been in these since 2p, its called a 5 bagger, man.

still waiting patiently for yer tips, yukky
you've impressed me on this thread, can't wait to look at anything else you've got on offer

if you are a bit tight for time, just post the epics with a L or S (long or short)

good luck
Nobs

Hold on guys , news in the next 1-20 days .

just think notlob if you had sold at 15p and bought back at 7p you could have bought heeps more, the fact that you didnt says you dont know much about what is going on with viy.

yukky
as ever, you got it completely wrong again!

points are
1) its called investment! Not short term gains

2)It would be simply impossible for me to sell the quantity i had at 15p and buy back at 7p, even if i could have gauged short term tops and bottoms.

I am far more interested in the share price in Vialogy in five years time rather than five minutes ago, when I fully expect itto be a multi multi bagger from here.
I have been in these for 3-4 years now, nothing, really, in an investors time horizon, but they have already given be a fantastic return.

Add that to my existing 4-5 bagger status and thats what I call a good return.

Anyway, still waiting to heasr your 'hot tips'
whats your best performing share to date?
doubtless you bought in at the very bottom and sold at the very top, judging my your criticism of my VIY dealings.

You must be some guy to be able to do that and I am very eager to know more.

I'm all ears, awaiting your trading details, strategy and tips.
I think I could learn a lot from a guy like you.

Your pal in waiting
Nobbs

come on you guys .... you're almost equally boring with your incessant sniping.

Nobbs .... you clearly hold (as do i), so that is good enough
Yukio .... you are one of the site's total tossers who talks the talk but never ever backs that opinion with hard cash

cynic

don't bother reading it then!

I'm trying to improve by performance here + I reckon Yukky could be the guy to help me.
ok, he might be a complete tosser, but if he can sell at the top and buy at the botom, I'm happy to overlook the little tosserrs shortcomings in the hope of catching a few crumbs of trading wisdom from the Great One.

He has already given me lesson one, that is sell at the top and buy at the bottom.
I'm just wonderin' why I never figured that one out......

I am eagerly awaiting his next lesson on how exactly he does that
Hopefully Yukky can give us some past examples and perhaps talk us through his next trade.

I really am all ears + I think me + Yukkybaby are almost mates now, so, please, Cynic, don't do anything to piss the twat off, as that could ruin it for me.

ps
I'm a bit new to this BB lark, if I reply to you, does that mean Yukky can read this?
Hopefully not, as he might think I'm being slightly two-faced here and only palling up to him for his wonderous trading insights.

So, sorry, Cynic, but I think its going to be worth it when Yukky baby tells us how to do it.

yours, a slightly concerned

Nobbaranio

i rarely read either of your posts, but they sure clutter up the place, not least because they could never remotely be described as concise.

well, if you rarely read 'em, why the f*ck are you bothered then!!!!

I could make comments on your posts, like I've never read anything vaguely useful or to do with VIY. They are concise but usually about nothing!

Anyway, please don't clutter up the thread whilst we are waiting for Yukkarama to give us all a helping hand. Be worth it, I'm sure.

Yours
Nobblybaby

Oh for a filter button.

Paulo there is ..... it's called "squelch" which means that X or Y's posts do not show (i think), but the space they take up is still there..... i have yet to use it but sometimes one is sorely tempted

guys, don't clutter up the damn thread, please!

or you could always try posting something useful.