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.

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

EK is not a great lover of this company. He doesn't really understand what they do (much like the rest of us!) and he constantly implies that they are a 'jam tomorrow' kind of company, which to be fair, is correct so far.

RHPS Verdict: I have seen plenty of exciting
scientific innovations in my time, but nothing to
beat this. The scale of the opportunity is
enormous, and so is the value of Vialogys
revolutionary QRI software. High Risk BUY.

Name: Vialogy
EPIC: VIY
Exchange: AIM
Bid/Mid/Offer: 4.20p, 4.00p, 3.80p
52 Week High/Low: 6.38p/1.50p
Market Cap: 23.88m
Buy Limit: 7p
12 Month Target Price: 20p

http://www.fsponline-recommends.co.uk/i/pi/1294449427/3oilstocks.pdf

Suggest you visit their website to obtain a clear understanding of their technology.

this might help

http://www.vialogy.com/pdfs/QuantumRD_2009_overview.pdf

read about the QRI Space scanner here!

'This is one of the most astounding profit opportunities Ive come across this century.'

don't sit on the fence, then!!!!!!


http://www.fsponline-recommends.co.uk/page.aspx?u=rhpoils&tc=ERHPK615&PromotionID=2147066175&u=350966&g=0&o=70594&l=169221&

Lots of blue today ? good news on its way ?

news on new customers expected, also further wells to be drilled and news on the other techs also.

going nicely today, rumours abound of new customers, further wells to be drilled and a possible partner for the pipelline application.

Sp a pleasant surprise on my return from a few days away - glad you've been keeping an eye on this for us all Notlob!

Today's RNS, posted here so we maintain continuity of the thread

Boa Energy Resources contracts ViaLogy to develop multiple

Oil & Gas lease properties

Not exactly an enthusiastic response to the good news.

RNS today:

Buckingham Group Contracts ViaLogy to Develop Multiple

Buckingham CEO Darryl Buckingham commented, 'We are encouraged by the technology ViaLogy has introduced to the industry and expect that it will mitigate risk and provide us with a critical advantage.'