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.

I was wondering why the stock had started to move.

Looks like a perfect investment to be hyped as it has all the classics

1. Testing with big players
2. Unquantifiable but massive potential market size
3. Apparently superb technology
4. NEar term and long term targets
5. Revenue and prodits not in sight
6. Plenty of cash to wait until MktCap hits 100m+ before fund raising from the Fidelity's of this world
7. Nice background story, former priv eq investment co that found this, liked it so much they binned everything else

Is this ITM revisited .......

Buy the hype, sell the fund raising in c1year

more than testing, Vialogy have contracts with Cisco and Boeing

Revenues are in sight, being generated right now, according to AGM

Lot more than hype going on here, imo and dyor

Current valuation option money.

tipped again on the MW site
also a very bullish interview on dawntraders site with exec chairman Terry Bond
looks like it is going to 10p+ very soon.

two decent articles now available for free on the MW site about Vialog

http://www.michaelwalters.com/stories/news.phtml?num=2853

http://www.michaelwalters.com/stories/news.phtml?num=2852

Vialogy going very nicely again, think will break through all time highs (9.25p) very soon
Strong newsflow expected soon.

Very nice-- I bought for longer term hold looking good so far.-

things really hotting up with Cisco



http ://blogs.cisco.com/networkers/2007/cannes/2007/02/

this is done with VIY's tech!

VIY on fire recently, much more to come,imo.

I'm happy-would like to add if there's a pull back.

moving up nicely again, about to break-out to all time highs and double figures!
nice!

very nice! I can't understand the lack of interest in this little gem considering the tie up it has with cisco and boeing-long term hold for me.

think a lot more people will be interested very soon though, moneyplus
nice to be in ahead of the curve
this has serious legs!

Exciting news from vialogy today-those not in should take a serious look at it. Jim Slater holds a large chunk and says this is THE one-his star investment!! I hope he's right-I'm still holding long term.

The blue sky might not be getting any closer but its' shade is getting deeper all the time...

nice write up!


http://www.worldwidebb.com/news.php?id=latestnews&cast=354

29.03.2007 - The Bombfinder General

So now we have 2 constituents of our growth portfolio being taken out in the last few months. Property group, HALLADALE, has gone for 225 p against our 2005 buy price of 116 p while Spanish restaurant chain, LA TASCA, is still the subject of a bitter bid battle between the ubiquitous Robert Tchenguiz and another private group, Tragus, who already own Cafe Rouge and Bella Pasta. First highlighted here in 2005 at 138 p, LAT are now up to 194 p as the auction continues.

While takeover bids like these are a pleasant surprise when we first read about them in the morning, the downside is that we are being forced to surrender perfectly good growth vehicles in exchange for a short term profit while all the future benefits belong to somebody else - more often than not nowadays an unquoted private group who do not even offer a share alternative.

Companies like HDG and LAT that can double earnings every 3 or 4 years do not grow on trees and the loss of such situations necessitates a vigorous search for suitable replacements. However, if you think the forfeiture of future growth potential on this scale is bad enough, imagine what it would be like if you were forced to sell a stock for a 200 % or 300 % profit when you know darn well that it was capable of soaring 20 or even 30 times if left to its own devices.

Well, let's just hope such a " fate " does not lie in store for our 2 potential multibaggers, CORAC and VIALOGY. Although totally unconnected, both companies share two things in common. They have both developed revolutionary technologies and they are both heavily supported by a group of seasoned, techno - literate investors who appear to cross - fertilise ideas on one of the leading market bulletin boards and seem to know a good thing when they see it.

The CORAC story has been well documented in these columns over the last 2 years. The company's groundbreaking compressor technology is at last beginning to generate revenues from bread and butter industrial applications but followers are in this one for its ability to enhance the recovery of natural gas from low pressure reservoirs by up to 40 %. Development of Corac's unique Downhole Gas Compressor, which will be undergoing final field trials within the next 12 months, is largely funded by oil giants like Repsol and ENI who will ultimately also be customers - clever eh ?

In reality of course, these huge corporates are not stupid. It is very much in their own interests that such technological advances are fast-tracked and not delayed by funding shortages. If this form of expediency is true of Corac, it is doubly true of VIALOGY whose ability to detect extremely weak signals hitherto buried in background noise promises to make our lives infinitely more secure. By signals, we are not talking here of the " Broadsword calling Danny Boy " variety but those given off by chemicals and hydrocarbons and picked up by extremely sophisticated sensors.

We already know that this Aim listed Californian operation has been recruited by Cisco and Boeing to work on all sorts of secret squirrel stuff such as border controls and missile gyroscopes but this week comes the incredibly welcome news that VIALOGY is providing the final piece of the jigsaw in some mindblowing technology developed by the US government's Oak Ridge National Laboratory in Tennessee, the birthplace of the atomic bomb.

Amazingly, this technology containing Vialogy's box of tricks will enable a portable, handheld device to detect concealed explosive chemicals from a distance of at least 100 metres. It doesn't take a genius to work out that this has enormous implications for security everywhere from Iraq to all airports, stations, hotels and large office buildings situated in areas vulnerable to terrorism. This dramatic breakthrough comes on top of Vialogy's existing ability to detect bio-contaminants in water supplies.

As with all of the company's contracts to date, little or nothing is forthcoming about the financial side of things so we can only speculate about revenues and profits in years to come but the range of heavyweight applications for Vialogy is expanding so exponentially that today's market value of 40 million could look miniscule in a few year's time.

In January we chose this company as one of our 3 shares for 2007 when they were 5.5 p.( The other 2 coincidentally were Halladale and Corac ). The Oak Ridge announcement has fuelled a rise to nearly 10 p but this still looks a tiny fraction of the potential. As the implications of this news sink in and gradually spill out to the wider world, we should see the price galloping much further ahead.

well worth a look if you're not in already--massive potential! IMO.

Interesting news. Just hope Cisco aren't lining up a quick takeover as this firm has massive potential if left to its own devices (even if no one's sure what they actually do, LOL).


ViaLogy PLC
18 April 2007

Date: 18 April 2007

On behalf of: ViaLogy plc ('ViaLogy' or 'the Company')

For Immediate Release



ViaLogy PLC

Board Appointment


LONDON, April 18, 2007 -- ViaLogy PLC (LSE: VIY), the AIM-quoted technology
company, today announced the appointment of Mr. Shah Talukder as executive
director of ViaLogy with immediate effect. In addition to his appointment to
the main Board, Mr Talukder has also been appointed President and Chief
Executive Officer of ViaLogy's wholly-owned American subsidiary, ViaLogy LLC, of
Pasadena, California.

Mr. Talukder comes to ViaLogy from Cisco Systems, where he was General Manager
of Cisco's Safety, Security and Systems Business Unit (S3BU) where he
established a start-up culture. Within Cisco he developed the vision,
strategy, and road map for the Interoperability and Collaboration System (IPICS)
family of products and applications. The system enables personnel within the
same or different agencies to communicate across previously isolated radio, IP
and non-IP networks by delivering information to various types of communications
devices. These could range from a radio, a telephone, and an IP phone to a
mobile phone and a computer.

At Cisco, Mr. Talukder was also instrumental in working closely with customers,
industry and technology leaders, research institutions and sensor vendors to
define a vision and strategy for the Sensor Policy Manager (SPM) as a framework
for sensor based rapid detection and response to greatly improve the quality and
speed of information dissemination.

'I am very excited at the potential of ViaLogy and I am looking forward to
leading and growing the team,' said Mr. Talukder. 'The breadth of technologies
developed by the company is extremely impressive and has a wide range of
applications. It has the potential to become a platform for sensor and network
sub-system interoperability and provide a service delivery architecture based on
customer specific needs in such areas as Enterprise Security and Operations,
Defence, Connected Real Estate, Oil and Gas, Transportation, Home Land Security,
Retail and Healthcare.'

Mr Talukder added: 'Customers and industry at large are looking for scaleable
solutions to sensor based remote monitoring, emissions mitigation, green
environment, physical and border security. As an example customers globally,
regardless of national boundaries, whom I have met and spoken to are keenly
interested in enhancing their capabilities to remotely monitor and respond to
greenhouse gas, seismic and motion sensors, biological agents or to detect
pressure in oil or gas pipelines. They want to provide the appropriate
information within seconds, based on policy and business rules governing the
incident. The information could be send to specific PC laptops, cell phones,
PDAs, IP Phones, TV or digital signage etc. and could be in the form of
standards-based video, voice and sensor data'.

'We are delighted that Shah Talukder has agreed to join us,' said Mr. Michael
Kelly, the former banker and venture capitalist who spearheaded the merger
arrangements which gave ViaLogy a public quotation on the AIM last year.

'At Cisco, Shah has built, managed, and mentored teams towards industry
excellence through product innovations and delivery of solutions and has created
a start-up like culture which is reflected by the wide industry acceptance of
Cisco IPICS.'

Mr. Kelly will remain on the board of ViaLogy PLC as a non-executive director.

ViaLogy PLC's Chairman, Mr. Terry Bond, stated: 'During the last five years
ViaLogy has successfully developed a range of network-centric, real-time signal
processing technology platforms for sensor applications. We are now transforming
ViaLogy into a product and sales centric company. Shah Talukder is the ideal
person to scale and develop the vision, strategy and focused execution needed to
lead ViaLogy forward'.


For further information please contact:

ViaLogy PLC
Terry Bond, Chairman - ViaLogy PLC +44 (0)20 7869 7014

Redleaf Communications
Emma Kane / Samantha Robbins +44 (0)20 7822 0200

Seymour Pierce Limited
Mark Percy / Liam O'Donoghue +44 (0)20 7107 8000


About ViaLogy: Network Centric Signal Processing.

ViaLogy is a leading innovator of network-centric, real-time signal processing
platforms for sensor applications. ViaLogy is currently deploying and designing
computational systems, powered by its patented technologies, for applications in
life sciences, public safety and security, surveillance, defence and
geoseismology. Vialogy focuses on market driven problems where automation,
timeliness, quality and reliability of information processing are essential.
ViaLogy's core competency incorporates rapidly and accurately detecting weak
signals buried in high noise background and clutter. This technology can be
employed to solve problems involving sensor integration and information overload
challenges involving video, telephony and control sensors, as well as for
enhancement of numerous signal processing applications. For more information,
visit our website at www.vialogy.com.

Except for statements of historical fact, the information presented herein
constitutes forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the company to be materially
different from any future results, performance or achievements expressed or
implied.

Excellent news this morning as the US Department of Defence deepens its interest.

Cheers, Madison

12p next!

Really can't believe there aren't more people on board this little beauty!