VTL - Vital Telecommunications (formerly Team Talk)

[Beagle]

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.

[The Grinch]

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

[bunter]

I sold when they bought Farmside, and broke even. This acquisition immediately reduced EPS and I wondered what other dumb things they might do.

David Ware writes in plain English and I like that. Doesn't mean he's a good businessman though.
IMO you can only mass send reports to shareholders from the south of France (like he did) when your company is humming.

MD Ware just sold 75,000. Must be planning another trip to Europe. Big fat sell this.

Two 'sell' signals back, from early September 2014, (MD sells) and cc June 14 (eps-unaccretive acquisition).

[noodles]

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.

[couta1]

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

I think you mean $2.60?

[babymonster]

I think you mean $2.60?

No, I think it was oct last year, ttk was like 1.55-1.65. And then early 1.60 again in dec.

[couta1]

No, I think it was oct last year, ttk was like 1.55-1.65. And then early 1.60 again in dec.

Well I would have been very happy to have bought in at $1.60 rather than $2.78

[winner69]

From the last Annual Report a picture of one of your Senior Management Team

He must have known about the impending disasters and all these one offs that bit you on the arse

[BIRMANBOY]

LOL W69.....There was A/R another one several years back with their heads on trophy plaques....that would have been appropriate as well. My dividend yield has been severely affected but even after the cut should still be 6% or so....small mercies. As usual I'm looking to get in and average down ...reduced buy prices 3 times yesterday...its a fine line.

From the last Annual Report a picture of one of your Senior Management Team

He must have known about the impending disasters and all these one offs that bit you on the arse

[Chaowee88]

LOL W69.....There was A/R another one several years back with their heads on trophy plaques....that would have been appropriate as well. My dividend yield has been severely affected but even after the cut should still be 6% or so....small mercies. As usual I'm looking to get in and average down ...reduced buy prices 3 times yesterday...its a fine line.

And as predicted debt became too much and the divvy has been slammed. Still amazed their paying one, just digging their hole a lil bit deeper. Sad really. Sigh, warnings were given..