VTL - Vital Telecommunications (formerly Team Talk)

[BlackPeter]

Could be the guy who complained about the declining share price at one of the companies meetings after having bought in at $2.80 ish and holding around 600k worth of shares from memory, hes obviously not worried about getting the best price he can by dumping such a big block on at once, more likely to drive the price down further as others jump ahead with their minnow sell orders. Disc- Still holding my 20k block.

I know the feeling - still sitting on my block of TTK shares as well. Otherwise - not too worried about the short term share price (unless they want to raise more capital, in that case it becomes obviously very material). More worried about their debts (which will become an issue unless they get the cash flow picking up and getting better in predicting what might next bite Davids's most precious.

Still believe that the current environment should be good for them - everyone requesting these days better communication and faster broadband ... and they do have some (hard to replace) specialist skills related to connecting remote rural communities. As well - communication companies doing well these days (if you look e.g. at CNU, MSI). Obviously you need to balance the quality of the current board and SMT against the support of the environment. As I see it - they made now at least 3 cardinal mistakes over the last couple of years:
1) Farmside. While I think the purchase was rather complementary for their product spectrum, they obviously paid ways too much.
2) Picking the right (i.e. wrong) team and leader to pull Farmside out of the ditch: I suppose this is highlighting that a communication technology and mobile radio buff (David Ware) must not necessarily be as well a great recruiter and leader. While I believe that David Ware's skill set is quite important for the company, it would be as well important to supplement the board / SMT in the areas where he is clearly lacking.
3) Hire and Fire on SMT level ... their SMT has a quite high staff turnover - and at least 2 GM's left after less than one year (Peter Roborgh) or less than 2 years with the company (Peter Baines). Again - this looks like lacking recruitment skills (Why would you hire a guy you want to get rid off after such a short time?) and it more likely reflects on the working atmosphere in this company.
4) (Did I say three?) keep on paying a dividend despite a ridiculously high leverage ...

They say all bad things come in threes (or did I get that wrong?). So, lets see whether they learned from their mistakes, and whether the lot of new managers and board members are just another set of names you don't want to get attached to (because they will leave soon enough), or whether they can make a difference. Some of them seem have on face value considerable industry experience - lets hope, they are worth their salt and are able to work with David!

Personally - there have been times I thought better about the company, but on the other hand life taught me that to panic is not normally the best response to a crisis. And hey - there are as well some highlights: I believe that their decision to go with Motorola was a good one; It sounds as well the new projects (Chathams, Haast) are starting to deliver some revenue (though we don't know, how much) - and lets assume that they had more luck (or skills?) this time around in picking the latest lot of senior managers and board members.

I intend to hang in (at least at current SP) a bit longer - and will review the situation if & when the SP bounces. In my view the share should be at least good for a dead cat bounce, but hopefully there is still a bit more life in this animal.

Discl: holding (and wondering why I didn't sold out earlier) and as always - DYOR!

[BlackPeter]

Oh dear - probably better shouldn't have checked how this share is going: Down to 75 cents and basically no buyers (worthwhile mentioning) left. Certainly nothing which would deserve the name "support" - and this despite any new bit of information.

Obviously - it all can turn to custard form here, but given the lack of news would I assume the current situation is more caused by the one big seller at 78 cents (who didn't really manage to sell anything so far) causing a stampede of small shareholders underbidding him/her. You can basically smell the fear in the air. Not quite sure yet, whether this is one of the "Warren Buffet" moments - buy if others are fearful?

[samdaman]

I'm torn on this one, if they can pay a total of 8c dividends this year then I'd say buy but I'd really prefer them to pay down their debt instead so while it could be a nice slice of dividend I'd rather see them not pay a dividend, and if they didn't pay a dividend then I wouldn't want to be in. what a dilemma.

[bung5]

I'm torn on this one, if they can pay a total of 8c dividends this year then I'd say buy but I'd really prefer them to pay down their debt instead so while it could be a nice slice of dividend I'd rather see them not pay a dividend, and if they didn't pay a dividend then I wouldn't want to be in. what a dilemma.

I'm jumping in now and taking the risk , and while i think they shouldn't pay a dividend, its the dividend that I'm buying for. Interesting to see what the SP does going ex dividend in a couple of weeks. Will it rise before or just drop after.

[percy]

I'm jumping in now and taking the risk , and while i think they shouldn't pay a dividend, its the dividend that I'm buying for. Interesting to see what the SP does going ex dividend in a couple of weeks. Will it rise before or just drop after.

Yes best to keep my thoughts about buying down trending stocks to myself?????!!!!

[winner69]

Yes best to keep my thoughts about buying down trending stocks to myself?????!!!!

But 'this time it's different' Percy ......because you get that dividend soon and then some capital gains.

[couta1]

I'm jumping in now and taking the risk , and while i think they shouldn't pay a dividend, its the dividend that I'm buying for. Interesting to see what the SP does going ex dividend in a couple of weeks. Will it rise before or just drop after.

Your risk is infintesimal compared to those of us holding from the high $2s so go for it I say

[bung5]

Yes very brave. did the same buying Chorus at $1.38 and that had no dividend. I guess time will tell

[percy]

Your risk is infintesimal compared to those of us holding from the high $2s so go for it I say

Classic !!!!!!!!!!!!!!!!!!!!!!!!!!
Yes all you have got to lose is only all that you put into it.Total loss.!!! lol
$2.60 divie looked good.
$1.60 the divie looked good.
Not a good idea losing money.!!
75 cents the divie looks good?

[couta1]

Classic !!!!!!!!!!!!!!!!!!!!!!!!!!
Yes all you have got to lose is only all that you put into it.Total loss.!!! lol
$2.60 divie looked good.
$1.60 the divie looked good.
Not a good idea losing money.!!
75 cents the divie looks good?

Yeah and the bugger's keep dropping their deposit rates started out around 10% couple of years ago and its gradually come down to about 3% for my buy in price currently, HNZs on call account looking pretty attractive aye Percy.