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.

When I first saw this I thought it said "Supermarket contract"! I suppose you could call it that though. :o)

Whatever, it is a bit of good news on a gloomy day.

"Pasadena, CA, United States, August 12, 2010. ViaLogy PLC (LSE/AIM: VIY) announces that it has signed a master services contract with a global supermajor oil firm, marking an important step in the company's development. The contract with one of the world's top six energy firms prohibits release of details, pending completion in the coming months of ViaLogy's QuantumRD analysis of a large onshore prospect."

Think it's high time we turned ourselves into an oil company...have a rights issue to raise the capital, then do a reverse takeover into a smaller oil comany and get drilling for ourselves...& stop having to give our technology away for another person to make the profit.

Bought in today at what I think is a decent level, hoping for a move up on news.
2517

volume building last couple of days, news coming ?

why the fall..?

i'm afraid that like CRA, it sounds great on paper, but they just cannot get the end result (profit!) required .... i gave up on them about a year ago

mitzy-------half year loss has increased.
2517

they weren't doing anything for me so i sold out at a small loss 2 days. lucky i did or else the loss would have been bigger. maybe someone is looking out for me. i still believe in the technology so may re-visit when its a bit further along and they have declared contracts with the 'household names' they refer to in their RNS
Alex

I also bailed out a while ago and took a loss on the chin. Maybe one day it will come good, but for the moment it's another 'Jam tomorrow' company, imo.

StockMarketWire.com
Oil field discovery company, Vialogy has posted an increased interim loss of 3.1m for the six month period to 30 September 2010 ( 2009 interim loss 2.56m).

The charge for depreciation and amortisation was 1.591m , up from 1.43m last time.

Cash outflow from operations during the period was 1,840,750. At 30 September 2010, cash reserves stood at 1.67m.

The Board firmly believes that the current sales pipeline indicates that the Group is in a position to achieve a considerable growth on 2011.

Chairman Terry Bond says: "Five global oil companies have requested and received presentations on the successes QuantumRD has achieved in the last 18 months. At the time of writing, two of these household names are in discussions with us to use the technology in specific major projects. We are confident that more business of this calibre will follow. "

All the best George.

Cheers mitzy, I have a feeling I may need some luck with VIY, but having paid 3.31p I'm not far out the money.
2517

Things are beginning to stir at VIY, not so much the sp however! Certainly worth watching this one though.

London, January 20, 2011, ViaLogy PLC (LSE: VIY). ViaLogy announces that, under contract to its client, a large independent Exploration and Production company based in Texas, another successful well has been drilled and is in the process of being completed.

The well was drilled on a 15 square mile Permian Basin acreage block, analyzed and positioned using QuantumRD, the company's proprietary weak signal detection technology. Drilling took two weeks and reached a ViaLogy-designated total depth of over 11,000 feet. Initial well logging analysis shows multiple hydrocarbon pay zones at varying depths that could be exploited in a net interval of over 70 feet of effective carbonate porosity. Productive limestone porosities are typically very low in these Permian carbonates. For this formation to be economically viable zone porosities must reach at least 4%. One of ViaLogy's key challenges was to locate these carbonate zone porosities, delineate hydrocarbon-bearing reservoirs, identify oil-water contact and quantify their areal and vertical extent. Detailed volumetrics for the different zones will be computed in the coming weeks.

ViaLogy CEO Robert Dean said, "This is another indication of the consistency and repeatability of QuantumRD to predict reservoir properties such as lithology, fluid-presence, porosity, and delineate stratigraphic reservoirs in a variety of geological settings. Industry acceptance of QuantumRD continues to increase." He added, "While our focus continues to expand to working with global majors on applying QuantumRD to larger exploration and development blocks, and complex deepwater formations, we have a significant backlog of onshore areas in the US where QuantumRD can make a significant contribution in de-risking."

This time round...this coming year...a surge to above 10p at long last coming perhaps....

Well, after the nice little update this morning I''ve decided to add a few more to my pot; I felt it would be rude not to. :o)

I cant believe they are 2p.

final results due.

Final curtains..?

SP up 30% some news coming?

surely you don't hold this one hali?

cynic a 30% gain is a 30% gain no matter which share!