.

Unionhall - thanks for your post. It has been a surprising reaction to the TS. The share price must now be oversold yet today bring another string of sells. Capitalisation of 7.7m and profits of 1.1m to give a pe of just 7. The stock must be getting extremely good value at these levels.

Ling - I agree with you, that the TS could have been more diplomatically written. Appears to have been knocked up without too much thought. Although the reaction to it could not have been seen. They will be much more careful with the final results statement, hopefully to say that the worries this time around have or will be sorted with no problem. Too much this time around has been concentrated on the negative side rather than the positive side.

The share price is going to be in for a rough time short term though. I hold a lot of these and like gordon, am going to wait for the price to recover. One would be daff to sell so cheaply at present as these should recover. Next January to March we should see 4 to 4.5p at least when sentiment changes. I will be watching the trades screen but it could be bad reading. I am going to limit my posting here to no more than one a day. After the initial bout of selling today, I expect to see the share price stablise, and as punters reassess EVS we will eventually see buyers return. The price now is too cheap to sell, and I believe that this is now the new bottom from which the price will eventually recover. After all EVS is still making profit. Punters are forgetting this important point.

The management really are concerned are they not!!!!

It is interesting to reflect on how much abuse I received when I suggested 3p as a short term target for EVS and 2p as a longer term one. The price is currently 2.75p. I did point out several reasons for why this would happen but the rampers just tried to shout me down.

A salutory lesson in not listening to rampers.

I emailed Kevin Jauncey this morning and it was kicked back at me by the system! Presumably they are up to their neck in emails and have blocked them? There are some slight tick ups!

Hey Dr LING,

What a F..K up

Capetown - we may have hit a bottom at 2.7p on the bid. There are signs of a 'bounce' and mainly buys going through. I would not like to say we have hit a low but we might have! We could be nudging 4p on the bid by the end of the week if the present 'buys' are maintained. At this time I am losing very heavily. I hope Kevin Jauncey is doing something - he should be.

Dr ling take comfort u are not the only one loosing!,

We can but wait and see,

cant believe no statment,even if to calm investors!

Be careful of a 'dead cat bounce'. The MMs have taken in a lot of stock from sellers over the past few days. They may try and encourage a few buyers by upping the price for a while.

There have also been many buys,

A 'dead cat bounce' is certainly a possibility but I have a 'feeling' that there is value in EVS at these prices and we could be seeing a recovery. Quite how and why they made such a mess of the TS I cannot imagine. It really was appalling.

If you look at the Price to Cash ratio for EVS it is just under 10, implying that EVS is currently under-valued.

Ling,lets move forward now,

Buys almost equal to sells so lets pray

Yep!

We have seen quite a few buyers come in today. It is a shame I am not more liquid cause they represent much better value at this level, and with carefully worded results trading statement these could recover.

I too am hoping for a recovery, especially as I am away on hols from the 15th August, so don't want to leave with the sp still in the doldrums. Will keep 'dribble' buying to take advantage of bargain price. Good luck, all

We have been in contact with the company (like many) and are satisfied with the response. It is still our intention to hold for the longer term.

Remember DYOR

I see some messages from KJ have been published on the AD VF N board.

Ling,i cant get to advn,could you tell me the tone of the info from KJ?.PLEASE.

Have re-posted a good positive post from unionhall -

unionhall - 29 Jul'05 - 15:38 - 14754 of 14880 edit
Folks,
I've just had a good discussion with Kevin McGovern.
First of all the company are surprised and disappointed by the market reaction to the Statement. It had been reviewed by the usual advisors etc and noone had foreseen the reaction.

guru11 - the company is on target to meet profits targets but has suffered with a working capital problem, which is not unsurmountable. However the market has taken it badly. Now with all of the sellers out of the way, we should see the share price firm up again from these good value levels. After taking a tax charge we are looking at a pe of 10 at a price of 3p with profits of 1.1m. I have to hang in here,in the hope that the SP will improve after taking a fair hit recently.

Financials first -

He is very clear on the top line, gross margin has some wiggle room in case of the audit throwing up adjustments and the bottom line PBT which they refer to as market expectation is the 1.1m and again they are conservative to ensure they meet this target.

The significant investment spoken of is not capitalised but expensed in getting to the 1.1m PBT target.

Working Capital issue is arising simply from the business growth and the differing terms to debtors and creditors.

It will be dealt with if possible in line with any acquisition in the six months to December.

They are acutely aware of shareholder value and are looking at the various funding options.


They are not planning growing the Wholesale element of their business further but this is based on current runrates (my estimate approx 22-24m pa). They believe they have achieved the level at which they can retain adequate margins etc.

Acquisitions if they happen will be on the Retail side and they are talking to a number of targets at the moment as the RNS mentions.

The VOIP confusion is around inward vs outward traffic. They have appropriate VOIP infrastructure for outgoing international calls but are building for a cost-effective full UK coverage to BT etc when BT's 21st Century Network comes on line. (Cardiff will be first city in March 2006 with full roll-out by 2008)

To help investors understand this he is hoping to put some slides on the website.

The company are happy with the CCR roll-out but being a conservative he mentioned it is still in its infancy so impossible to trend at this stage.

Hi LING,what posts have you seen?,thx

I pride myself on the fact that we try to answer shareholders questions, although in busy times this may take a little longer. I must stress that I am not able to answer questions over and above what is in the public domain. As you are aware, this is part of my regulatory requirement, as is passing the wording of any statement through a regulatory compliance process.

Sorry that you regard the statement in this way, but I feel that the Trading Statement tried to communicate a balanced view going forward. The statement is dominated by the fact that the company has grown dramatically (nearly doubled primarily in the second half) on the previous year, clarification that a clear strategy for the medium to long term has been adopted, a new product has been taken through the expensive but well budgeted development stage to launch and from my final sentence we are clearly progressed with the longer term acquisition element of our plan while realising a significant PBT versus a loss of 240K last year.


Regards



Kevin