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Ann: Veris 1H FY19 Results Presentation, page-21

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SimonGr

3,447 Posts.

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14/03/19

09:32

Post #: 37756311
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Originally posted by cyclerider: ↑

A great post. Agree with many of the sentiments.
Major over-arching issues for me are that
1) business momentum is incredibly poor and deteriorated in Q2 even further (surveying EBITDA margin of only 3%!! and this was after they realised they had issues)
2) the business is a people business and as a result business momentum takes on added significance;
3) this issue is compounded by it being a roll up story where the most important people in the business have likely cashed out or wished they did and compounding all of these points is
4) the balance sheet is incredibly stressed.
The combination of these attributes are particularly precarious, especially when the banks are already effectively running things. I hope this doesn't end up like many other roll ups which gorged on excessive debt or fell afoul of "contingent" liabilities (such as deferred consideration for recent acquisitions lIke VRS has). There is decent upside if things play out favourably, however given VRS' ability to implode during both an infrastructure and property boom (which is rolling over), the toxic cocktail of debt, very weak momentum and poor financial management makes a "cheap" valuation a likely value trap.
These opportunities are mostly better revisited once there is some sign of stabilisation and banks aren't in charge. You may miss the first 20% but you will also miss the negative 100% if things don't play out as you hope. Agree it is worth watching though.

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Thanks - some food for thought.

VRS Price at posting: 6.8¢ Sentiment: Hold Disclosure: Held
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Last 4.4¢		Change 0.002(4.76%)		Mkt cap ! $22.40M

Open	High	Low	Value	Volume
4.2¢	4.4¢	4.2¢	$6.11K	144.7K

Buyers (Bids)

No.	Vol.	Price($)
1	7436	4.2¢

Sellers (Offers)

Price($)	Vol.	No.
4.4¢	253676	3

View Market Depth

No.	Vol.	Price($)
1	7436	0.042
1	50000	0.041
2	282320	0.040
3	611946	0.038
1	69512	0.037

Price($)	Vol.	No.
0.044	253676	3
0.050	105922	2
0.054	50000	1
0.055	150000	1
0.062	100000	1

Last trade - 16.10pm 27/09/2024 (20 minute delay)

VRS (ASX) Chart

Ann: Veris 1H FY19 Results Presentation, page-21

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Ann: Veris 1H FY19 Results Presentation, page-21

Top Stories

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Zeta Resources seeks to resolve the Panoramic takeover story

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Buyers (Bids)

Sellers (Offers)

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