Thanks Moosie ….. I agree yet still see VML as a longer term punt with min downside. (disc; holding both VML and PEB)
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I wasn't really promoting one stock over the other (I like PEB as well), just trying to highlight they are companies at a similar crossroads.
No I don't have an earnings forecast.
Last 1/2 yr they increased 125% rev, but critically, shrank the loss. If the loss had risen alongside the higher earnings I would have had a long sideways look and been nervous about their margins. I too would like more clarity from them, but that aside I think they are well positioned to grow AND turn a profit.
As indicated in previous post the growing of revenue and shrinking loss is the only real indicator we have at this stage. Remember they will also be pouring resources into their o/seas markets, so if the loss is shrinking in those conditions it would suggest margins aren't too bad. Full year a/c will hopefully clarify some, but if they want to disguise margins from their clients it's probably not hard to do.
There are more than 7,400 McDonalds restaurants in Europe. the two announced deals cover about 455. if the Sweden roll out is successful then it will probably be a very good omen for further expansion with this single multi-national client. If they pick up a few more then we will see the game changing. I think this could well be a share to watch over the coming 24 months.
Large volume going through today, why the sudden interest I wonder ?
This thing after everyone saying it had too many shares on issue is flying under the radar of high flying Geo's and Wyns etc.The typical approach of bargain hunting kiwi punters.You just have to weigh the options as Moosie often does.Problem is the charts often don't follow the mad kiwi punter..Hold some and just greatful for the rise after SPP.........
Got to give an answer to that great analysis. this thing may go to six on the basis that is a price that can be reached before analysis and reality rear their ugly heads.That based on my judgement for what it's worth.The capitalisation may be stratosphere bound but who cares.Balance may have a kniption but I can have a quiet giggle at that....
This is always what makes me tumble over myself, when you have this:
VML= over $50 million
SNK = $31 million
What has VML shown that has everyone so hyped up? Well-known companies as customers? Mcdonalds, Telecom, 2 degrees and Vodafone?
2013 interim report shows $131,000 as trading reveune? How can something like that be worth $50million MCap? When Snakk with their 2013 interim report of $3million be worth only $31 million?
Crazy market we have this year. In hindsight VML is easier to sell to retail-customers when told about the next big thing and what kind of customers they have. Easier mentioning VML customers (Mcdonalds, Telecom, 2 degrees and Vodafone), than it is Snakk's who doesn't really tell us who their customers are. Snakk's working on something in Asia but has yet to annouce anything, while VML has already formed an office and partnership there already.
I guess a company who is more transparency with its shareholders has much more investors wanting it. You can see that with WYN now with how it kept on announcing big deals and the confirmation of exceeding forecast definitely puts the cherry on top. SLI only had to announce how many word searches they were getting.
Also the perceived price makes VML appear cheaper at 4cents as opposed to SNK 12cents. I have met many people who talk about the price of the share as the buying point as opposed to the Mcap. (Easier to sell a cheap stock than an expensive one right?)
Given the current market we could see VML stock priced pushed even higher than SNK, which I'd think was crazy, but when everyones shovelling it in and fueling it all, lets hope for investors alike that it doesn't run out. Could be some impressive trading profits to be made or maybe they deliver very impressive revenue streams come March 2014, lets see right!
As Peter Lynch would say theres more value investing in a boring company, the more boring the better. VML doesn't sound boring? While as much as Snakk keeps posting impressive results, retail investors can't read numbers can they? (so its boring) Alright I guess we can see where VML wins with the marketing of itself, but Snakk holds up better with its fundamentals.
A little exercise that Warren Buffett uses.
Question to everyone: If you could choose to get 10% of the revenue from a kid in your class in high school would you choose the loud or the quiet one?