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.

On the road to nowhere.

Informed comment? No.
You are wrong, imo, as will be shown this month by two important projects reaching fruition.

The first one is the oil drilling technology, where the first well is due to be drilled in a few weeks time. Vialogy stand to earn $8m from this first well alone, and further sites for drilling are being lined up.

The second one is pipeline survey, where, again, the results of VIY's unique technology should be available in a few weeks time. Terms have already been agreed for a minimum of $26m revenue to VIY over the next 5 years from this one application. Note, that is minimum revenues.

The danger here is to confuse share price action with the underlying performance of the company. Sometimes the two are related. In this case, I have very strong reasons for believing this is not the case.#

In addition, Vialogy have multiple contracts going forwards for their SPM product, as detailed in the annual report.

I believe the current sp is more down to crap markets than anything else and that the sp stands a very good chance of being significantly higher in under one months time.

We shall see!

VIY seems to have run out of credibility, i suspect because there is still(?) no indication when it might turn into a profitable business ..... is still hold some of these, but really cxannot see good reason to throw more money in ...... chart looks as bad as that for SEO!

Where is this going to..> in a month it has lost 50%.

Waiting for exceptionally good news!

better waing for godot

Aren't we all.

me? .... just waiting for last trump!

ViaLogy Plc ('ViaLogy' or 'the Company')




Start of Oil Exploration Drilling in Texas







London, October 16, 2008 - ViaLogy PLC (LSE:VIY), the AiM-listed technology company, announces that Atascosa Exploration LLC (Atascosa), of San Antonio, Texas, has begun drilling the first of six wells planned on the Charley & Nancy Hundley High Lonesome Ranch in McMullen County, Texas. The location and boundaries of the prospective oil reservoir, including prediction of its size, porosity and volume were determined by the use of ViaLogy's QuantumRD technology. The rock fault is believed to contain a significant oil reservoir.




The initial well is to be drilled to a total depth of 6,000 feet and total depth is predicted to be reached within the next week.

What's the betting they strike water or hot air?

Texas is rich with oil & has 150,000 producing wells.

However one would have thought if there was oil where VIY are drilling, Jock Jason or Digger would have discovered it in the 60's....plus the fact JR never found any there either so it doesn't look good does it ?

'Atascosa is not at all discouraged by this development' said Atascosa CEO John Mullins. 'The drilling outcome was a result of our not informing ViaLogy of the problem the raw data ultimately caused. The QuantumRD analysis was correct based on available data. Atascosa has committed to drill at least three separate prospects using QuantumRD and remains committed to that effort, which will be at an additional cost to Atascosa of $2-3 million dollars. ViaLogy will continue to receive at no cost a 5% Back-In-After-Pay-Out working interest in the first well successfully drilled and completed on each prospect, with the right to participate in subsequent wells under a standard operating agreement.'




ViaLogy CEO, Robert Dean, said: 'The ViaLogy geoseismic team located a significant oil reservoir as predicted, and we consider this a positive milestone in earning proof of concept for QuantumRD. We are moving ahead with Atascosa within 30 days to begin drilling the next two prospects, which we expect will conclusively validate QuantumRD as a breakthrough oil discovery tool.'

Well thats about it its a penny stock now... its the end of the pier.

or off it ...

Jim Slater must be upset having made the wrong investment decision, or did he get out while the going was good?

Moving up can we expect some good news for a change?

Vialogy gets oil prospects cut in Texan deal
MoneyAM
Vialogy has signed a contract with Atascosa Exploration to analyze data from three oil prospects in south central Texas using its QuantumRD technology.

Under the deal, Vialogy will receive a 5% interest in production revenues minus expenses.

CEO Robert Dean, said, 'We are delighted that Atascosa has decided to extend the use of QuantumRD into a broader exploration and production setting that will best show the capability of this technology, provide revenue, and justify a business model that Vialogy can carry forward.'

ViaLogy says it is now making plans to market QuantumRD extensively

RNS confirms their technology works, maybe leading to a significant increase in sales.

Figures taken from todays RNS assumes oil at $40 per barrel..the oil price today is over $50 !

amazing press release, very strong news, they reckon this could have a major impact on the industry, according to the Atascosa oil guy that Vialogy are working for.
In which case, shares should have much further to run.