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.

ViaLogy forms sensor network joint venture with U.S. group Swan Island Networks
AFX


LONDON (Thomson Financial) - ViaLogy Plc. said it has entered into a strategic partnership with U.S.-based Swan Island Networks Inc. in order to create a sensor network.

'As a result of our partnership with ViaLogy we can bring our customers on-site incident alerts fused with traffic and weather news, possible related incidents, global alerts and more, giving those customers an enhanced ability to prepare, prevent, respond to or recover from critical or catastrophic events,' said Pete O'Dell, Founder Director, Swan Island Networks.

No further details of the deal were provided.

another good RNS, the sp will only make progress if this shorting prior to a placing finishes IMHO.

Another good anouncement, when is this share going to take off, the potential is becoming so obvious !!!

RNS Number : 5093B
ViaLogy PLC
18 August 2008



ASTFS Contracts ViaLogy to Manage Airborne SAR Flight Program and Data Processing to Locate and Assess Buried Pipelines




Project finalized to fly two major onshore buried natural gas pipeline segments




London, 18 August, 2008: ViaLogy PLC (AIM: VIY) announces that it has signed a contract with Advanced Spatial Technologies Field Services, LLC ('ASTFS') to conduct two airborne synthetic aperture radar (SAR) and Light Detection and Ranging (LIDAR) imaging surveys for buried natural gas pipelines to deliver accurate location and subsurface movement information, and to assess pipeline condition.




Under the terms of the contract ViaLogy will manage SAR and LIDAR survey flights, and perform all quality assurance (QA), sensor data processing and aerial imagery fusion to deliver accurate location and information on the pipeline condition. ASTFS will use ViaLogy results to visualize underground pipeline layout and populate industry-standard geographical information systems (GIS), asset inventory and computer aided design (CAD) systems for the pipeline customer. ASTFS will also be deploying their Spatial Asset Management System (SAMS) software for cataloging the detected pipeline segments and secondary structures (valves, hand-holes, seals etc) allowing integration with 3-D CAD system for precise GPS asset location, improving subsequent maintenance and periodic inspections.




ViaLogy and ASTFS are jointly piloting a rapidly-deployable end-to-end field service for buried oil and gas pipeline location surveys and degradation assessment. The pilot flights and subsequent service offering meet two high-demand needs in the pipeline industry. First, federal and other regulations stipulate that pipeline maintenance condition meets certain standards and that regular inspections be conducted to insure standards are met. Second, pipeline repair obliges operators to know exact pipeline location in order to find and repair it, and avoid inefficient manual probes. The companies' new service offering, branded 'ASSIST', will significantly reduce time and costs compared to current survey techniques. This service is being offered to early pilot customers at around $2,500 per km for pipeline geo-location. The ViaLogy-ASTFS contract marks the completion of a key milestone under the Memorandum of Understanding announced by the companies on 1 July, 2008.




Following success of the pilot survey, ASTFS has agreed to deliver minimum revenues of US$26.5 million to ViaLogy for market exclusivity in North America over a period of five years.



Mr. Jim Muller, President of ASTFS stated; 'ViaLogy's prior technical expertise in electromagnetic subsurface imaging and sensor fusion, and especially ground-penetrating SAR, is key to our ability to market and offer a differentiated, well-priced service to our pipeline customers. To date, the pipeline industry has been unsuccessful in exploiting cost-benefits of aerial sensing due to sensor, signal processing and performance limitations.' He added 'These pilot surveys will include geolocation and health assessments for over 200km of pipeline segments.'




ASTFS has been leading the down-selection of natural gas pipeline segments for the pilot surveys to include rugged terrain, rapid elevation and ground moisture changes and proximity to urban populated areas in order to demonstrate the unique capability of ViaLogy's subsurface imaging technology, and to prove it will work under 'worst case' conditions where standard SAR has not worked well in the past.




ASTFS and ViaLogy have also entered into discussions regarding an aerial pilot for off-shore buried oil gathering and transportation pipeline location. These oil pipelines are down to 3' to 6' in diameter and often cross-over each other. It is estimated that there are 450K miles of natural gas and over million miles of oil transportation lines in North America with 98% being underground. According to US Department of Transportation's Pipeline Safety Program Office regulations, currently the pipeline companies are required to survey their pipelines on a quarterly to annual basis depending upon proximity to population areas and railroad crossings.




According to ViaLogy President and CEO Robert Dean, 'This is an excellent market opportunity for our QSUB subsurface imaging platform powered by our patented signal processing technology - QRI. The ability to provide guaranteed location information in a cost-effective manner should provide the firms' near-term access to a large addressable market which has been valued in excess of $2bn. We are very pleased with ASTFS success in acquiring potential customers and strategic partners in the pipeline industry at this early stage.'




ViaLogy also disclosed that recently it had received approval from US Dept. of Commerce to deploy QSUB globally for subsurface pipeline imaging.




##




For further information please contact




ViaLogy

Robert W Dean, President & CEO - US +1 626-296-6337 (mobile: +1 703-589-3807)

Terry Bond, Chairman - UK & Europe +44 (0) 1235-834734




ASTFS

Jim Muller, President - US +1 281-492-2004 (mobile: +1 713-249-4108)

potential may be obvious, but profitability not so

Following the success of the pilot survey, ASTFS has agreed to deliver minimum revenues of $26.5 million to ViaLogy for market exclusivity in North America over a period of five years, the company added.

cynic before profits can be realised a company has to make sales, to be fair recent RNS suggests the VIY technology (which is difficult for a layman to understand)does appear to have found some applications. Whether these sales generate a significant profit remains to be seen, but it is noticeable that the market for such "devices" is responding positively to VIY's mareketing efforts.

can't disagree, and in fact i hold, but they sure am boring at the mo!

Once clear revenue is banked then will gain more interest. I hold and have added and understand to some extent the power and multi-utility of their software product- IMHO - its awesome!

with all of the latest news, you would still expect the SP to rise and hold instead of rsining and falling back by end of day !

Hopefully their interims will shed some light on their future revenues !

ViaLogy raises 1.8 mln pounds through placing of 45 mln shares at 4 pence each
AFX


LONDON (Thomson Financial) - ViaLogy Plc. said it has raised 1.8 million pounds before expenses through a placing by St Helen's Capital of 45 million shares at 4 pence each with certain existing shareholders and new institutional shareholders.

The proceeds from the fund raising will be used to provide additional working capital, the company said, adding that the 45 million shares are likely to be admitted to AIM on August 28.

TFN.newsdesk@thomson.com

This is dilution of existing shareholders who have not been invited to subscribe at bargain-prices. It isn't much money, so expect a repeat - that's over and above the Warrants which add further dilution.....anyone buying above 4-5p is paying too much for this "Jam tomorrow, pass the sugar" company.


It's one of the few deals St Helens Capital have achieved this year - good luck - see their sp. also.

You beat me to it hangon. 4p seems like a bit of a slap in the face for existing shareholders.

at least it's done now, hopefully we can move forward after the next RNS without the threat of a placing holding it back.

This thread has the wrong Subject-line, IMHO!

Today the sp went up on 1m buys and 250k sells, yet there was another 250k marked(?) below the Buy price, so it might be nearer to 1:1 - yet MM's push this to 5.25p and 8% uplift.

I'm not following you, StillWaiting: It may be [VIY] can move on ( although I don't hold, it's a watch and wait for me), yet this money raised isn't much and the Warrants tell me the financiers were not too sure either.
This stock has been ramped several times into double figures, so those folk (if still here) have been massivly mis-led....and did VIY tell them they knew no reason....of course not! Companies will allow their sp to rise to the level of dross if only because it allows Execs to bask in the sunshine, even if only briefly.
If it had been worth 12p+ then further orders/repeats etc would remove the need for a funding - and this is about the worst time in Economic-cycle that a Co. could go begging.
I suspect ( BUT do not know!) London AIM market is seen as a source of cash and no-one is too worried if UK shareholders get a return, other than from Market manipulation, that's ramping when you look back....otherwise what have you invested in?
Clearly your 12p's have funded speculators who found a route to Riches - and this 4p funding shows they were really wrong. Let's not forget it isn't 4p, either - there are Warrants too, so that will hold-back sp.
And it wasn't 12p you paid- it was more, because of the dilution effect.

Also, there is the technology risk - when punters tell you this company has IP up their eyes and huge profit potential from this/that I wonder where they read this drivel? The only profits that are believable are in the Accounts and dividends are the proof - everything else is Puff!

18months ago this thread was blowing hot at 5.5p ( probably 6p to buy then), which represents nearly 50% up on the Funding. Those posts suggested break-even by 2008 - yet I suspect we could see another fundraising before that happens - you just cannot trust Execs with your money! - Er, IMHO.
I might pay 4p -but only if their story holds up, yet I suspect chatter (here?) will keep Buys above this, unless there is some disaster, which no-one wants.
But not more...this is a US-based company and you cannot go round and check them up...if they delist from AIM you've caught a cold and as I do not know them, why risk it, that's my position.

Good luck to all who sail in her.
+ Do read the first-posts and realise. . . how far down the line your investment is, . . . after all the Movers have taken their slice.

Yes - I think this is going to go ballistic very soon*


(*within the next 6 weeks)

oil application is worth 5-10 times current market cap alone, imo

add in all other applications, eg pipeline survey, env. monitoring, military base security, medical etc etc, and this is a time bomb waiting to go off!

all imo, dyor!

All though I am a holder, what I cannot understand is with all of the excitrement, I would have thought that they would have been able to raise a lot more money and at a slightly higher price. Why 1.8m and not round it upto 2-3 million ??

Hopefully the test results from the drilling will be excellent which should give confidence to all long term holders and a move up northwards for the SP.

because they only had authority, without going back to shareholders, to issue up to 10% extra shares, ie 45m.

Heavy buying this morning. Dose anyone know if Atascosa have found oil or what is behind todays rise.

Oilyrag, they were tipped in RHPS over the weekend...