VTL - Vital Telecommunications (formerly Team Talk)

**noodles** · 23-01-2015, 07:24 PM

Just looking at the history of this train wreck.
It appears David Ware was selling after the full year report... $120K worth!

I wonder if his colorful language is starting to wear the patience of his shareholders? From his latest announcement. "We have not achieved some of the growth that we expected while a number of one-off items popped up and bit us on the arse"

Net Debt is $35mill (at 30June) and increasing. Westpac must be getting a little nervous. How the hell are they allowed to pay a dividend!

TTK joins CAV and PPL as likely contenders go to zero this year?

**The Grinch** · 23-01-2015, 08:15 PM

Originally Posted by noodles

Just looking at the history of this train wreck.
It appears David Ware was selling after the full year report... $120K worth!

I wonder if his colorful language is starting to wear the patience of his shareholders? From his latest announcement. "We have not achieved some of the growth that we expected while a number of one-off items popped up and bit us on the arse"

Net Debt is $35mill (at 30June) and increasing. Westpac must be getting a little nervous. How the hell are they allowed to pay a dividend!

TTK joins CAV and PPL as likely contenders go to zero this year?

Mmm correct me if I'm wrong but EBITDA was close to $16mil so TIE ratio still healthy. 17.5 cps last year was about 5.5mil out of the bank so 8cps this year will be 2.5ish. Even if they do get closer to $12-13mil EBITDA this year they will still be able to pay interest+dividends... no longer a healthy TIE and one would argue that you shouldn't use EBITDA for that ratio.

Definitely a concern and by no means is TTK now a boring dividend stock but I will keep a lazy eye on it - with the exception of purchasing farmside at the wrong time this company has been a good little ticker with a reg div for a long time. Your bound to get unfavourable headwinds once every decade or two.

Not saying it won't go to 0 but as far as risk vs reward goes I still think your better placed here than in some of these latest spec tech stocks.

Disc: I wouldn't follow my advice - I like CAV and this stock... can't say I like PPL but I'm on the wrong side of the liked list this year. Holding: PEB,DIL,HNZ,CAV,DPC

Cheers
TG

**noodles** · 23-01-2015, 08:33 PM

Originally Posted by The Grinch

Definitely a concern and by no means is TTK now a boring dividend stock but I will keep a lazy eye on it

Yes. Things to watch:
-debt levels
-free cash flow
-refinancing progress
-capital spending

Good luck.

**babymonster** · 23-01-2015, 07:57 PM

Originally Posted by percy

Above posted 24-10-2013.
Right on the money!!
And that big problem just keeps on getting bigger.!!!

I m glad I didn't go in when it was 160 last yr

**couta1** · 23-01-2015, 08:34 PM

Originally Posted by babymonster

I m glad I didn't go in when it was 160 last yr

I think you mean $2.60?

**Baa_Baa** · 25-01-2015, 01:47 PM

My investment advisor was around for dinner last night, we had a good chat as always including on TTK, as it's on my yield watch. So fwiw here's some snippets.

"Farmside acquisition has been a really big mistake"
"it was way outside their management capability and in a fraught sector"
"have a number of VERY LARGE holders of TTK, for the reliable yield"
"Monday will be hell, not sure what to do yet, this is a disaster".

However, for those who don't own, or hold regardless, "TTK is now cheap".

This is the story line, http://www.teamtalkinvestor.co.nz/nzx-releases it's grim reading, though the apparent policy of 'pay yield in the face of adversity' may have been beguiling, so one wonders like others have done here, whether they should just keep their money and fix the company first. However, imagine what the share price would do if they're predominantly held by yield focused investors and the dividend was cut completely!

Here's the story in a picture (monthly), and an ugly one at that:

Attachment 6706

**winner69** · 25-01-2015, 02:06 PM

I assume there was no earn-out payments made for Farmside so acquisition was only $31m

At least $12m of this was paid wih overpriced shares, ie $2.64

**Beagle** · 23-01-2015, 08:01 PM

In summary, we understand what's gone wrong and have a solid strategy to deal
with the issues but nevertheless this is a very disappointing episode for a
company with a proud history and an exciting future" says Mr Ware.

Never had anything to do with this but gasped at the dramatic fall today and couldn't help bring up a five year chart and saw they were $2.30 five years ago.
Proud history when the SP has halved in the last five years, really ????? Looks like classic corporate spin doctoring to me.