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.

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 !.

I have managed to track down JR Ewing oil, but they are based in County Down, N.Ireland.
I must admit, I didn't know County Down had much of an oil industry, but it fits in with the small producer category

http://www.hotfroguk.co.uk/Companies/J-R-Ewing-Oil

I can't see VIY selling their know-how to JR ewing oil for a lot, but I guess you never know.

Never heard of the poster Sue Ellen, can she help shed any light on VIY's large Texan oil producer? be nice if she did a post again on here.

LOL!!! Cheered me up! Not often these boards are a good laugh! The ecomony MUST be improving!

??? lol

the clue was in the name... they are only a small operator hence being a junior (jr) Ewing oil...
no need to get excited bolts!

Bought into VIY today, terrific amount of buys to sells, atm. The technology appears to have been proven, just need more take ups. Spread is a bit high, but thats what you get with minnows.
2517

It has momentum could become exciting after the next RNS.

sounds to me like they have signed that deal with JR Ewing oil.
Seems to me some on this thread were keen to put me off the scent, but I won't be deterred!
You can't keep deals like JR Ewing oil quite forever, can you now?
Only thing that very slightly peeves me is how did required field know it was JR Ewing oil? Guess he just moves in the right circles, good luck to him, I guess.

Is VIY real is has it all been a dream !

You remember Bobby coming out of the shower ! and Victoria (no not Beckam) dreamt it all....heavens ! what have I started here...there must be some escapees from Bunny's beer basement that have got in here !.

its all double dutch to me, wtf is happening, I must be living in some sort of parallel universe.
Last post sounds like a 'plot line' from some cheapo porn/s&m movie

Can we just get back to VIY and the deal with JR Ewing oil, instead of all this day time fantasy stuff.

When do we think the deal will be announced.
Required field, you seem to have all the info, how about the inside track on what is going down?

LOL !!! Nearly fell off my chair! RF, you have got a lot to answer for starting this kind of conversation! You're not a hedge fund manager by any chance??? ;o)
Full marks to notlob for keeping his cool under very trying circumstances!

Any body going to the Oil Barons Ball !

is that another porn reference?
Please do try to keep to the subject.

You lot won't be laughing when JR Ewing Oil sign the deal with Vialogy!
I believe the signing will take place in Dallas, if i can de-cipher a fraction of the riddles you guys talk in.