VTL - Vital Telecommunications (formerly Team Talk)

[BlackPeter]

They'll be lucky to maintain any divie at the rate their going..

Interest expense makes up approx 5% of revenue... Conservatively financed this is not..

Stay away, risk and reward really does not stack well with this company.

Much better dividend paying companies who a conservatively financed out there.

Well - certainly not a company for the faint-hearted - and I agree, if they are not careful with their leverage, than they might go down the gurgler.

However - last half year they (just) could afford to pay the interest and their other bills (including some unexpected). They said that they expect the second half to be (somewhat better). So - unless they forgot to disclose that something in their outlook has changed, I expect them to come back for the full year with something like 5 cents EPS (well - better than naught and less than ten) ... and hopefully a positive outlook.

At this stage it certainly looks like the bears still have it (though quite light trading ...) - it is probably more the uncertainly and no news which makes still investors jump the ship. I believe as well that we see some change of investors (remember - this share used to be tooted by a number of brokers as ideal retirement stock with a reliable and safe dividend - Cough) from dividend seekers to growth investors.

At this stage I am not aware of any material information which should move the SP into any direction - what we currently see is just the human traits of fear and greed in action. And hey - Warren Buffet once said "be greedy when others are fearful - and be fearful when others are greedy".

So again - they might just roll up their toes nails (and I agree, this is a possibility, if they don't find a way to compensate for losing valuable satellite customers by swapping them to less attractive fiber customers), but they might as well do a CNU on us - and more than double their (current) SP over the next 12 months or whatever. I certainly do still see potential, however whether you rate their growth potential as smaller or larger as their risks - this is up to everybody's individual perception and judgement.

What I am not any longer certain is whether the current board is best equipped to deal with the situation. Maybe some of the larger owners want to consider whether we nominate next time a director better equipped to balance against a David Ware? I still think that David adds value to the board (and management), but I don't feel comfortable with him collecting an increasing bunch of lap dogs around himself, and I don't see anybody in the current board asking the hard questions.

Discl: own some (and at this stage the worst performing share in my portfolio); DYOR

[Chaowee88]

Yeah Right !!!!
But I think Greece will still be there in 10 years time.!!

55 cents is still too generous, should be more like 40.. 38 million of debt.

Non existent profit, ewwwww.

More likely to go under than stay alive this..

[tim23]

Management buy out prospect?

[BlackPeter]

55 cents is still too generous, should be more like 40.. 38 million of debt.

Non existent profit, ewwwww.

More likely to go under than stay alive this..

Hi Chaowee - would you want to share with us the source of your information and what data your SP estimate is based on?

[BIRMANBOY]

So in order to turn a company around three things need to be present. Simple in concept but quite often difficult in execution.
(A) Some recognition/ acknowledgement that we are presently knee deep in piranha's and something needs to be done.... PASS
(B) A plan that's well thought out and vetted by experts in the field and delivered to all staff and shareholders.....Apparent FAIL
(C) Some media savy deliveries on a regular basis to highlight advances and wins and presented by a believable, confident and forthright non-quirky CEO. (Quirky is fine when you are ahead but gets trashed when you are struggling) Unfortunately another FAIL.
disclaimer...still buying OMG!!!

[winner69]

So in order to turn a company around three things need to be present. Simple in concept but quite often difficult in execution.
(A) Some recognition/ acknowledgement that we are presently knee deep in piranha's and something needs to be done.... PASS
(B) A plan that's well thought out and vetted by experts in the field and delivered to all staff and shareholders.....Apparent FAIL
(C) Some media savy deliveries on a regular basis to highlight advances and wins and presented by a believable, confident and forthright non-quirky CEO. (Quirky is fine when you are ahead but gets trashed when you are struggling) Unfortunately another FAIL.
disclaimer...still buying OMG!!!

Some would say (A) is a FAIL as well. Communications don't seem to suggest they think they in ****.

[percy]

There's an old saying "we appear to have a problem."
Once you have faced up to that fact,you can work out what the problem is,and then start working on fixing it.
The board has to face up to this first of all.
From my experience, people who caused "the problem", are not the right people to correct it.
I am also concerned that the company sees fit to continue paying dividends, while the already high debt continues to mounts.

[Jim]

There's an old saying "we appear to have a problem."
Once you have faced up to that fact,you can work out what the problem is,and then start working on fixing it.
The board has to face up to this first of all.
From my experience, people who caused "the problem", are not the right people to correct it.
I am also concerned that the company sees fit to continue paying dividends, while the already high debt continues to mounts.

That reminds me back about the prospect of Feltex. The management kept saying it is ok and look what happen to it

[winner69]

There's an old saying "we appear to have a problem."
Once you have faced up to that fact,you can work out what the problem is,and then start working on fixing it.
The board has to face up to this first of all.
From my experience, people who caused "the problem", are not the right people to correct it.
I am also concerned that the company sees fit to continue paying dividends, while the already high debt continues to mounts.

Most of the board has been around for too long and prob think everything is honky dory. Roger definitely so.

So as Percy says no acknowledgement of trouble no fix being put in place .... same old plans and lots of hope.

Looking at the pictures of the Board .... OMG its worse looking than Heartland .... white as and most look older and not a woman seen. Diversity needed badly .... whose going to get that group of old buggers (sorry Mr Finance guy) thinking differently?

I think the website doesn't have the up to date Board shown ..... may be utterly wrong and no doubt the cat will put me right.

[percy]

Most of the board has been around for too long and prob think everything is honky dory. Roger definitely so.

So as Percy says no acknowledgement of trouble no fix being put in place .... same old plans and lots of hope.

Looking at the pictures of the Board .... OMG its worse looking than Heartland .... white as and most look older and not a woman seen. Diversity needed badly .... whose going to get that group of old buggers (sorry Mr Finance guy) thinking differently?

I think the website doesn't have the up to date Board shown ..... may be utterly wrong and no doubt the cat will put me right.

I would think any one of Heartland's board members,or senior management, would bring much needed competence to this business.