As I have said in numerous posts VN8 is a good company I just have my doubts on the management. I believe that the management have done their job which was to get the company listed. We now need new blood in the company which can take this company to the next level. People who are experienced in running a public listed telco company. The facts are there to see. Everything points to problems related to decision making and not under standing the public markets.
And Blackdog thanks for the history lesson. I was involved in KRL where we took the company from a $2 million market cap to a $750 million market cap. Thanks for the endorsement. A lot of people who got stock at 1c and were bought out by Bayan at 15c are very happy. Some people even managed to get out at the high of 32c good luck to them.
And also thankyou for pointing out ESR. It is a little exploration company which is always hard. But you never know with these little companies whether you can pull something out of a hat. they are a high risk high reward scenario. We are trying our best there to get a good outcome for shareholders and you never know we may get lucky or we may still have to keep looking for the elusive Nickel ore body only time will tell but as per our announcements things are looking good so far.
I just wish I had the potential news flow that VN8 has as it would be so much easier to get share price traction. I WOULD use regular news flow to keep the market better informed if I had access to the news flow. Unfortunately I do not have the same news flow as VN8 does but they tend to just use quarterly reports to inform of progress and we all know that that does not work from our past history.
And to finish this off yes I have been in VN8 right from the start when they basically were dead in the water prior to the failed listing. It was our group that invested the money to keep them alive. Also I was there during the failed listing and involved in the raising of the Con Note which was the only thing that got all the IPO money repaid and gave the company enough money to keep alive to get to the next listing which is why you still have shares now.
Who has taken responsibility for the blow out in time and the $400K cost over run for Oper8tor and we still do not have a viable commercial product. That should be the current management team but they are too busy congratulating themselves on the great job they have been doing whilst the shareholders are still underwater from the IPO price point. We were told that we were going to be updated on a regular basis in increments of 2500 when it comes to PBX registrations but since then I do not think we have had any updates except for in quarterly reports???? WHY?????And lets look at the corporate actions. We have done one transaction in two years. This seems very light on considering how Spirit telecom are growing. They have done numerous transactions over the past 12 months and now have a market cap of over $100 million and also have a heap of cash in the bank. They do their capital raisings at higher levels and hence less dilution than VN8. If you look at VN8 they were doing around $8 million revenue last financial year. The new acquisition was doing about $7 million per year. We bought them in Jan so lets say $3.5 million was added to VN8 from this. If you look in the figures $1.75 million was from the sale of the royalty and another $600K from R & D that is around $2.3 million .
According to their presentation Revenue from Sales was about $12.8 million. This is not a very good improvement considering we were in the prime churn period of the NBN rollout period. I was hoping for it to be closer to $15 million without the Royalty sale and R & D grant. Lets hope this improves this year.
But thanks for the discussion Blackdog.
The above are my opinions only and as always DYOR.
VN8 Price at posting:
13.5¢ Sentiment: Hold Disclosure: Held
(20min delay)