VTL - Vital Telecommunications (formerly Team Talk)

[winner69]

The worst part of fridays announcement was "Cash generation over the period was also weak"

Wonder what weak really means

They only need to generate $3m.of cash (after capex) this year to pay a 10 cents divie ....easy peasy

Any more cash can go to reduce debt

FCF last year was $4.7m and they paid $5.9m in divies

[percy]

Easy peasy could turn out to be very peasy difficult.
Paul Collins's Active Equities were a major shareholder.Not sure whether they sold down/out or just distributed TTK shares to Active Equity shareholders.

[BIRMANBOY]

Its 18% of my portfolio so is a good size chunk....how much of a chunk?...... modesty/humility/embarrassment/ prevents me from making that public Apart from that its no-ones bees wax anyway. So to put things in perspective for the last four years it has returned for me from 10% to 12% P.A. gross. Since my attention span is slightly larger than a gnats arsehole, I believe that grandiose comments and wholesale slagging off is somewhat useless and just shows an inability to think beyond the immediate. Companies cannot be judged on the basis of shorts periods of information and I therefore find its unproductive to get "grumpy". A longer period of bad results and recurring unsolved and unresolved issues will undoubtedly push me into grumpiness. In the meantime I'll be buying more next week. So you make sure you stay out of the way...or come in lower anyway.

Doesn't seem to be any decent sized shareholders ....is there any who might be get grumpy with how things going

Maybe Birman is one of the bigger ones

[percy]

Its 18% of my portfolio so is a good size chunk....how much of a chunk?...... modesty/humility/embarrassment/ prevents me from making that public Apart from that its no-ones bees wax anyway. So to put things in perspective for the last four years it has returned for me from 10% to 12% P.A. gross. Since my attention span is slightly larger than a gnats arsehole, I believe that grandiose comments and wholesale slagging off is somewhat useless and just shows an inability to think beyond the immediate. Companies cannot be judged on the basis of shorts periods of information and I therefore find its unproductive to get "grumpy". A longer period of bad results and recurring unsolved and unresolved issues will undoubtedly push me into grumpiness. In the meantime I'll be buying more next week. So you make sure you stay out of the way...or come in lower anyway.

May you live in interesting times!! lol.
You will have no buying competition from me!!!!!!!!!!!!!!!

[winner69]

Brman, was that 18% earlier in the week or today?

[Bobdn]

All the best Birmanboy! I don't hold TTK but I'll be rooting for you (as a fellow survivor of Chorus).

[percy]

All the best Birmanboy! I don't hold TTK but I'll be rooting for you (as a fellow survivor of Chorus).

He does not need any help.
He is doing a good enough job rooting himself!!!!!!!!!!!!!!!! lol.

[BIRMANBOY]

LOL....I can do my own rooting thank you ...but don't let me interrupt your efforts....Yes well ex CNU funds have to find a new home. No comments from the peanut gallery along the line of "out of the frying pan into the fire" please. If the share market was easy work it wouldn't be as much fun!!!

All the best Birmanboy! I don't hold TTK but I'll be rooting for you (as a fellow survivor of Chorus).

[winner69]

Birman has amongst some of the derogatory tirade makes some good points.

In some companies NPAT after trends can be misleading and do not always reflect true cash generation. Depreciation etc one of the main culprits in this. Teamtalk is one of those companies, Methven is another.

Their modus operandi appears to be to pay most of free cash flow generated as dividends. Anything left over goes to reduce debt. Occassionaly to keep the dividend steady one borrows a bit more.

Teamtalks cashflows are shown below. Only the last 2 years have dividends exceeded free cash flow (if they had foreseen the whole year they would not have paid as much in the interim). Even with last years numbers they have retail nearly $3m of cash flow.

The big issue is the borrowings to acquire Bay City. Is there any intent to reduce this in the near future or are they hoping for the boom times to come.

Unless FY15 is a complete disaster they probably will generate $3m and pay a 10 cent dividend if they wish to, and have some left over. Will Westpac be happy is the question.

Below is why I prefer to look at cashflows and not EBITDA and NPAT and other things. I believe it gives a clearer picture (even long term eh Birman)

[winner69]

of course the long term trend is increasing revenues and declining free cash flows .... not good if you look out 5 years of this continuing