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 plc

('the Company')




Holding in Company







The Company was notified on 26 March 2009 that, as a result of an acquisition of ordinary shares in ViaLogy ('Ordinary Shares') on 24 March 2009, Barclays PLC now holds 31,190,948 Ordinary Shares (with an equivalent amount of voting rights) which represents approximately 6.19 per cent. of the issued Ordinary Share voting capital of the Company.




These shares are held indirectly by Barclays Stockbrokers Ltd and Walbrook Trustees (Jersey) Ltd.

This has all the makings of becoming a pet stock...comes in as an "oilie" as well as a "tech" stock...if the product is what it says on the label then : the sky is the limit !.

It should be interesting to find out the name of the Texas based oil exploration company VIY is going to partner with as mentioned in todays RNS.

excellent news, stock will surely be back over old highs if this success continues.

VIALOGY PLC ('VIALOGY' OR 'THE COMPANY')




VIALOGY BEGINS DRILLING SECOND WELL AT TEXAS PROSPECT




Analysis started on third, deeper well




London: April 16th 2009. ViaLogy PLC (LSE:VIY) announces that a rig has been sited on Atascosa Exploration LLC's Galba Prospect in south central Texas using QuantumRD, ViaLogy's proprietary active signal processing technology that brings greater accuracy to seismic data analysis. Deployment of the rig and drilling of a second well is expected to start immediately. QuantumRD's processing and interpretation of site-specific 3D seismic data has determined optimal drill location, reservoir boundaries, hydrocarbon porosity, and other parameters for the new well. Results should be available within a week following drilling start. Under its contract with Atascosa ViaLogy is to receive 5% Back-In- After-Payout (BIAPO) Working Interest on oil production from the well.



This second project follows the successful QuantumRD positioning in March 2009 of a first well at Galba, named Cindy Bartlett #2.

ViaLogy also announces that it has commenced a QuantumRD analysis to determine the exact reservoir characteristics, porosity, and optimal extraction location for a third well on the Galba Prospect, this one in the Escondido sand formation. At considerably greater depth than its predecessors, the Escondido well should demonstrate QuantumRD's applicability for varying geologic formations at increasing depths and complex structural characteristics. Drilling on the Escondido well is planned for Q2 2009.

Further, Vialogy announces that it has begun technical and business discussions with a large Texas-based exploration and production firm to apply its QuantumRD technology to that firm's exploration prospects.




'QuantumRD's accurate predictions of reservoir boundaries and porosities on the Cindy Bartlett #2 well have confirmed our belief, shared by Atascosa, that we can substantially improve the current ratio that for every 10 on-shore drilling efforts in the US only four are successful,' said Robert W. Dean, CEO of ViaLogy. 'Our hope is that as QuantumRD's successes grow it will earn a reputation as a must-have tool in the exploration industry.'

For further information please contact:

Further, Vialogy announces that it has begun technical and business discussions with a large Texas-based exploration and production firm to apply its QuantumRD technology to that firm's exploration prospects.

gobsmacking!

notlob if their technology "does what it says on the tin" then the potential is unlimited. What they need now is a deal with a well known e & p name which would make the others sit up and take notice.

The company might be JR Ewing...of Dallas....on a serious note this does look very very promising !.

is JR Ewing a big company?

I ask because JR Ewing are not on this list of top 32 Texas oil producers

http://www.rrc.state.tx.us/data/operators/topoperators/oglist08.pdf

LOL !!! A difference of generations I think!

I don't think JR Ewing oil can be a very large organisation, as all I can find is a face-book page for JR Ewing Oil

http://www.facebook.com/people/J-R-Ewing-Oil/1311496101

I think it is wrong of Required Field to say that on a serious note this does look very promising'

They do not look like a major Texas oil producer to me, surely they would have more than a face-book page?

Try punching 'DALLAS' & 'EWING' in to Google. I think you will find it was a 1970's T.V. program.

thanks, but I'm after the major texas oil company, JR ewing oil, not some old TV series.

Ask Bobby !

notlob we hope you are pleasantly surprised as and when the name is announced.

I'm very confused here, is the large Texan oil producer JR Ewing oil or is it someone else?
And if JR Ewing oil is so big, how comes I can only find a face-book page?
And who is this Bobby I'm supposed to ask? Bobby Charlton or who?
You guys are talking in riddles here , I just hope if it is JR Ewing oil that they are really a major prducer.
Are they based in Dallas?

Although I was not the originator of the post:
"The company might be JR Ewing...of Dallas....on a serious note this does look very very promising !." my interpretation of it is that "The company might be JR Ewing...of Dallas...." is NOT a serious comment, "this does look very very promising !." is a serious comment.
Bobby was another character is the T.V. series "Dallas".
Probably best that you let this one go before you actually start watching the series!

thanks, Harrycat, for clarifying that.

I take it that JR Ewing are not a serious producer then, shame, as it got my hopes up.
Never mind, I guess even small producers like JR Ewing oil will all help add to the story.
Was 'Dallas' a recent documentary on the oil industry or something? Did Vialogy and JR Ewing oil feature? If they did, thought might have read about VIY a bit more in the press......was it on one of those digital stations like Dave or something that only saddos watch, hence not much publicity?

keep reeling them in notlob .... not often you give me cause to laugh

sigh ...! what can I say ?...bring back Sue Ellen...and co. ... it is the technology that is involved here that is very new...and could save companies all over the world millions of dollars....if this is correct and that VIY can sell their "know how" to big majors well you would not see the sp for dust !.