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.

Notlob; yes thanks aor the article.
cyril

no probs guys.

Well done holders--I like cynic lost nearly 8k on this one last year but I'm now back in in a small way not quite brave enough to buy the same amount! GL all.

Some large buys today, results in the next two weeks, more good news coming or just another tease ? Reaaly need to see some postive results from some of the drilling tests then this can really shoot for the stars, been holding for 2 years +, hoping it's been worth it !

sounding like next drilling results coming up within a matter of a few weeks, if another positive in this next, deeper formation, then the shares could explode upwards,imo.

pumben.

Are you sure results are out in the next two weeks,they weren't published until 30 September last year?

i have owned these for quite a while and drilling results will not make these explode upwards.Vialogy deals with small companies drilling small wells ,these shares will rise slowly but surely. stu

Pumben & Andromeda
Re when their results will be published, this is from the Vialogy website:

"The company held its last Annual General Meeting (AGM) on 29 October 2008; we anticipate holding this year's AGM in October 2009. The results for the year to 31 March 2009 will be published at least 21 clear days before the next AGM, in accordance with the provisions of the companies act."

results will be for the period before any oil revenues, so will be of historical interest only.
Excitement will come with further customers and wells drilled.

Some big buys and volumes but need to break the 6p barrier, good news required v soon please !!

RNS Barclays increases shareholding now over 7%.

halifax.

The Barclays holding is for nominee accounts.

andro how do you know? not declared as non beneficial. BTW tipped for a 300% gain by FTL for what its worth.

Who is FTL ?

London, August 18, 2009. ViaLogy (LSE:VIY) "ViaLogy PLC is pleased to announce that it has today raised approximately 2 million (gross) through the placing of 49,564,800 new ordinary shares of 1p ('Placing Shares') at a price of 4p per share ('the Placing') with new and existing shareholders.

The net proceeds of the Placing will be used in the further expansion of ViaLogy's Energy business which uses its proprietary QuantumRD technology to interpret seismic data for oil and gas reservoir characterization and positioning of drilling sites and for general working capital purposes.

Application has been made for the 49,564,800 Placing Shares to be admitted to trading on AIM and dealings are expected to commence on 20 August 2009. Following the Placing, the total number of ordinary shares in issue and therefore the total number of voting rights is 628,991,897."

good news, funding now assured, let the news flow commence!

looks like shedloads bought these at the 4p specified and are dumping them today, for a 25% to 33% profit.
The crucial bit is to understand when the sells have botttomed out and hence when they become worth buying

unlikely, those who bought at 4p and wanted to book a profit would have sold out quite a time ago.

with strong news flow expected through the autumn and the financial situation now assured, it looks a good time to buy.

Whilst they have secured funds from the placing (many of which are being sold now) PI's currently holding the shares are seeing their holdings diluted, a rights issue allows ALL investors the chance to participate. I know the co will argue time and cost, but they are quite happy to dump on current holders. AIMO of course.
2517

They need to get some positive results soon just to keep the interest going. This could be the last chance to move fupwards and opportunity to raise new capital.

Held for 2 years what's another year eh, come on VIY let's get moving !!!