Oops! Now this one is failing on compliance issues. Good thing...

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gogav

102 Posts.

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29/11/19

16:27

Post #: 41714740
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Originally posted by SteveSage: ↑

Not sure it's true that the market does not get it wrong

Along with a range of other issues on VTG (not big on the radar of analysts, illiquid stock or more accurately trading volumes too low hence small turnover moves the price), what the market cannot understand is without the 12-13m in remuneration, what the pnl will looks like. Mgmt have only indicated they plan to replace this with higher hardware sales, but no indication whether this will fully replace the lost remuneration. Add to that they did not flag how they were doing at the AGM so a lot of unknowns.

Arguably, if there was a significant decline they should have flagged it to the market (not sure if just highlighting loss of remuneration counts as a profit warning, but who knows).

On balance you'd prefer this remuneration over hardware sales because now you have to sell product to earn revenues each year, but at these prices, the market has priced in a lot of downside already

FY 2019 NPBT 34m, NPAT 24m, EPS 15c
if you assume that the full 13m in remuneration drops into PBT
Adj FY2019 NPBT 21m, NPAT15m, EPS 9c

Not ideal, but at current price, not end of the world (IMO).

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Oops! Now this one is failing on compliance issues. Good thing remuneration is cut before shareholders have their say. Very disappointed as we close in on 5 year lows.

VTG Price at posting: $1.07 Sentiment: Hold Disclosure: Held
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