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.

V. disappointing finish after a postive rns, looks like this will drift until they release the next rns hopefully providing details on a new large company. however, good to see that Barclays have been increasng their stake !!!!!

Gr0
your post ref concern about holding. you have now been given the opportunity to get out. you might like to think about just disposing of say x% say 100? just my opinion.
will you sleep better? there are better opportunities elsewhere. just my opinion.
dont think about how much you might make, consider how much you might lose. its up to you. just my opinion dyor
regards and good luck.
jkd

http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/technology/5279585/Vialogys-mapping-project-in-limbo-after-collapse-of-US-partnership.html

Vialogy's mapping project in limbo after collapse of US partnership
London-listed technology company Vialogy has failed to reveal to investors that a key partnership is in tatters, leaving a major project in limbo.


By Peter Taylor
Last Updated: 7:21PM BST 05 May 2009

Terry Bond, Vialogy chairman, confirmed to the Daily Telegraph that Advanced Spatial Technologies Field Services (ASTFS), a US-based partner, had gone "the way of all flesh" and ceased operating.

The two companies were jointly developing a system to map old underground pipelines in the US from the air, using technology developed by Vialogy.

Under an agreement sealed last July, ASTFS was to pay Vialogy $26.5m (17.5m) over five years if a pilot project to map pipelines proved successful. Mr Bond said ASTFS was wound up as long ago as October, but he understood that Vialogy was under no obligation to notify investors despite Vialogy publicising details of the July deal in several regulatory announcements up until last September.

Robert Dean, president and chief executive officer of Vialogy, said in a statement last August that the project was likely to provide the companies with "near-term access to a large addressable market valued at $2bn to $3bn".

Vialogy, which was spun out of a laboratory operation run for NASA by the California Institute of Technology in 1999, was floated on London's Aim market in 2006.

Mr Bond said Vialogy was "still in active talks to progress our pipeline project" with other potential partners.

The company was disappointed that ASTFS had ceased operating after putting "time and energy" into the pipeline project, he said.

"But that's all we put in. We didn't put any cash in," he said, adding that the collapse of the partnership had not been "financially crippling to us or anything like that".

Vialogy's principal focus was on projects involving oil and gas exploration rather than pipeline mapping, Mr Bond said.

old news, telegraph 6 months too late as ever

we all knew about this yonks ago! a non-event.

Having said that, good to hear the project is still alive, like the active talks bit, could be more good news on the way then!

And the price tanks 20%! Now down 15%

VIALOGY PLC ("VIALOGY" OR "THE COMPANY")

VIALOGY SEEKS NEW PARTNER TO COMMERCIALIZE BURIED PIPELINE IMAGING

London, May 6, 2009. ViaLogy (LSE:VIY) ViaLogy PLC today confirmed that it is actively seeking a new partner for the final proof-of-concept stage of QSUB, the technology application it is developing for detecting underground oil and gas pipelines, utilities and other significant buried objects. Using patented Quantum Resonance Interferometry (QRI) software, QSUB interprets multiple synthetic aperture radar (SAR) sets obtained by aerial survey.

In proof-of-concept tests carried out in Oregon, United States of America, ViaLogy was able to exploit ground disturbances to infer a buried pipeline. Subsequent digging revealed a six inch asbestos pipe buried 6 to 12 feet below the ground. Based on archival search reports, the pipe was buried over four decades ago. This test also provided ViaLogy with new opportunities for imaging and geolocation of buried utilities and pipelines via detection of ground disturbance, that are typically outside the scope of conventional SAR processing. In addition, confirmatory tests showed that ViaLogy detected over 150 'hidden' metal objects and wires at various depths.

"The need for a new strategic partner has occurred because our initial associate, Advanced Spatial Technologies Field Services (ASTFS), has ceased operating," said Terry Bond, chairman of ViaLogy. "This is unfortunate because the complete success of our initial tests is most encouraging and the addressable market for such a product remains significant."

"Now we need to conduct additional flights over varying terrain using the very latest aerial radar to collect sophisticated data. We will then be able to refine QSUB to provide a much-needed operational service to the oil and gas industry. This final step requires adequate development funding, hence the need for a new partner. This process is underway."

Commenting on ViaLogy's other involvement in the energy sector, QuantumRD which interprets seismic data for the location and analysis of oil well sites, Mr Bond said: "I have just returned from Texas where our technology has enabled our partners there, Atascosa Exploration LLC, to drill two successful wells on the Galba Fuqua Prospect, near San Antonio."

"We have now contracted to analyse seismic data for a third, larger well for Atascosa and had detailed discussions about further projects. We have also received several enquiries from other exploration companies in the US and Europe."

Gr0
are you a shorter? did you really want advice? or just playing dumb? if so go play elsewhere.
regards
jkd

jkd it is pretty obvious what greckO is up to regurgitating old news, the losers will be those selling VIY influenced by serial shorters. We await further up to date news which no doubt will drive the sp upwards.

thanks h
i try to be fair and honest, sad to say for holders that the opinion i gave was a true and honest one. happily for holders i'm wrong more often than i am right so lets hope this is one of them.
one of the wrong ones that is.
regards to you
jkd

I'm not normally this dense, but what's going on here?
greckO is dating his posts and naming the source so why the sceptisism? Are they false or are they misleading?
I hold stock in VIY & am naturally hoping for an increase in the sp, but I would prefer to know of bad news rather than pretend there's nothing to worry about.

HC
thats fair enough. i cannot say if they are false or misleading. as to why the sceptisism
thats not so easy to answer, cept to say having seen the latter responses to my original post i did a money am search on Gr0 previous posts and that is what led me to post about being a ramper/ deramper.( not in so many words, but asking the question)
who knows? not i. let Gr0 answer for himself . my original comments still stand and i hope i am wrong.
regards
jkd

slightly lost here, too? It was timely news, and I thought my comment on it falling so much served to illustrate my dismay at the fact!
It is the telegraph that is making public old news that the board didn't see fit to RNS, but have since done so (at a time when some speculate there is a shorting campaign going on).
I am long on this and am waiting for some good news - new or old will do! Same for FML!

gr0
it seems i may have misjudged you posts and i apologise to you.
my original comments ref considering selling x% still stands. good luck to you.
regards
jkd

since february Barclays has increased its shareholding from 25m to 38m shares as stated in todays RNS.

ViaLogy plc

('the Company')




Holding in Company







The Company was notified on 8 May 2009 that, following further share purchases, Barclays PLC now holds 38,762,184 Ordinary Shares (with an equivalent amount of voting rights) which represents approximately 6.70 per cent. of the issued Ordinary Share voting capital of the Company.

Trouble is, Barclays have made some frightful errors of judgment - but nevertheless, I got back into VIY recently. I still think they will pull through in the end, and the directors seemed trustworthy at the AGM I attended a year or so ago.

Any more news on a new partner ?

What's goiong on here today? All Buys so far and up 14%

EK says they are about to raise more capital to fund their projects.

Yeah, I saw that. He says "Stay short".

I'm not saying it isn't, but if capital raising was imminent the sp would weaken I'd have thought.
2517