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.

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.

I sold at a loss last year but back in today --hoping to make it back! surely we are due some test results any day now-maybe they are brilliant and the word is spreading.

Rise today could also be due to conversion of warrants.


Taken from RNS 02/04/09.

In accordance with the terms of their constitution, the proposed variation of the subscription prices applying to the 2009 Warrants and 2010 Warrants must be approved by, and is conditional upon the passing of, extraordinary resolutions to be proposed at meetings of the holders of such warrants. Accordingly, the Company has today convened meetings of the holders of the 2009 Warrants and the 2010 Warrants to be held on Monday, 20 April 2009.

We have lift off....on a bad few days in the markets....can't keep a good stock down !.

well if they've found more oil and do another revenue share it's good news coming---hopefully the oil companies will be queuing up for their technology!

well, I hear JR Ewing OIl are first in the queue

If QuantumRD can raise the chances of finding oil by a significant amount, then VIY has to be worth a fortune.

We will see.

And another successful outcome.
2517

VIALOGY ACHIEVES ANOTHER OIL WELL SUCCESS

London, April, 23, 2009. Vialogy (LSE: VIY) announces another successful well in the Galba Prospect in South Central Texas. This well success reinforces operational and commercial validation of the company's QuantumRD software-based seismic interpretation service for oil and gas reservoir discovery and characterization. ViaLogy accurately predicted the size, location and formation porosity for this prospect.

The new producing well, called Mary Ridgeway #1, is located on the Galba lease owned by ViaLogy's partner Atascosa Exploration LLC of San Antonio. The Mary Ridgeway#1 well is estimated to hold larger recoverable reserves compared to ViaLogy's previously announced Cindy Bartlett#2 well discovery announced in March 2009. As before, Vialogy predicted the subsurface hydrocarbon reservoir boundaries, the porosity of the oil-bearing Bartosh sands, formation depth, and positioned the well. Prospect estimates were confirmed by the well-logging and independent subsequent core laboratory analysis. The companies will be releasing actual figures over the next few days, including dollar estimates of recoverable reserves. As announced earlier, under its current contract with Atascosa, Vialogy will receive 5% Back-In-After-Payout working interest in the well."

You ain't seen nothing yet!
Just wait till the market hears about the deal with JR Ewing Oil, then we will really get take-off.

(first line, wasn't that a song by some old grunge band or something?)

Is Jim Slater still a big investor in VIY?

It is understood he's a back room boy and still believes this will be a huge company in a few years time. He's gone a bit quiet but is believed to have bought his warrants and still hold a stake but no one knows for sure---I added today on the 2nd piece of good news lets hope there are more deals due soon each success should increase the snowball effect. notlob are you joking about jr ewing oil?? I thought it was only altacosa oil they had agreements with I've only heard of the other on bbc 1!