I have sold my holding in VNET for the time being. The reasons for doing this is that capital growth is going to be slow and GSK has fallen to a very attractive price level. Not only does this hold an opportunity for capital growth but has an attractive dividend too that is guaranteed to rise. I will keep VNET on my watch list and may well buy in again as the dividend is very well worth having.Good luck.
...was short and sweet. There is no mention of the US business. I am not surprised. It seems their strategic partner is Micro-matic. Although this company dominates the UK market for cellar equipment, it is Stockport based and has limited penetration in the US. Additionally Micro-matic used to have their own flow monitoring system, but they withdrew it in the US due to limited take up. This is not, in my view, an ideal partner!!! (Though the Micro-matic system was far inferior to the VNET one).
I also note Paul Scott has sold up at a c12% loss. I have slimmed down what was for me a big holding. If there are any spikes in price I will get rid of some more. I was lucky enough to average down a bit, so am breaking level here. In teh long term the telemetry and fuel services will pull teh company round, and the dividend remains covered, so there is no imperitive to move. However I think there are better opportunites elsewhere at the moment. Good luck to us all.
Thanks Casa, but all the research in the world cannot cover up what is a 15% drop in profits! On the brighter side it IS in line with estimates, and the vending side has progressed very well indeed. We also have the dividend to look forward to! I am expecting a drop now, but will still hang on in here. It will be very interesting to see what Paul Scott has to say.
Thanks for the superb research, Blanketstacker. I must admit that I fhought the progress was slow with the US in last year's report. What a pity. Maybe VNET picked the wrong partner. We need for the other strings to pay off now or the dividend will be at risk. The market has discovered the news now and the sp has recovered to 82.
I am in the same position as you Casa and agree totally with your argument. However I have now done a little more poking around, and it is not wholly positive. One rationale for entering the US market was the withdrawal of Micro-Matic, the then US market leader. The problem now is that delays in VNET action have allowed new US-based competitors in. Have a look at USBN, USbeersaver and USbeveragenet for the competition. They are VERY keen to stress the US bit of their titles!!! (also allow for TavernTrak and Auper from Canada) (Maybe we should just sue BP???)
Anyway, fuel solutions and vending telemetry may now be the way forward. I would not be surprised to see very negative outcomes from the US next week, and a slow retreat from the market.
What beats me is that it has taken the best part of a year to come up with that insignificant outcome that can and is expressed in one sentence. It's so insignificant that VNET have not thought it necessary to publish an RNS. VNET must qualify as a speculative buy now, particularly as the report is due next week. I think I hold enough of these for now, however.
The report was as bland and inconsequential as was expected. It does not outlaw flow monitoring equipment, but does indeed require its figures to be backed up by other evidence. This means it will be retained in use. There were just too many vested interests to be considered here.
Results are due this coming Tuesday, so these should contain the two key pieces of information: how is the US business going, and what do management make of the report. I will wait for that before deciding what to do here.
In the meantime could I please encourage all holders to support the company by by heading down to Ye Olde Kebab and Calclculator immediately and slinging a few pints of Nibchuck's Erectile Dysfunction down their throats.Its a dirty job, but someone has to so it!
The Government has come up with the code of conduct between landlords and tied tenants. The beer flow monitoring equipment can be used in all pubs. When there is an issue over rents and beer usage, the flow monitoring equipment results can be used by the landlords but there must also be supporting evidence to show that the tenant is selling beer outside of the tie agreement. This means that VNET can get on with selling its monitoring equipment. However, the result is somewhat hollow when you consider that up to 26 pubs a week are closing through lack of profit. Maybe there will be more success in the US.
I like Paul Scott's daily report published on the Stockopedia site. He analyses financial reports of certain AIM stock such as VNET. He doesn't give tips as such but states his opinion on whether a coompany is undervalued and likely to give growth at a reasonable price (GARP).
Many of his deliberations currently do not result in a positive outcome due to the fact that we have experienced a long bull run and many companies are showing a stretched PER. This usually means that future growth is already priced in and generally it is not wise to pay for growth in advance.
You can elect to receive his report by e-mail as it is free and I think very useful. Have a look and see what you think.
Bad news I am afraid. He had a page in the Saturday FTMoney for years with lots of sound suggestions (and a few not so good) but retired last year.
The good news is that he has just written a book - 'How to Make a Million Slowly' - which includes about his strategy and '12 Guiding Principles' and some share analysis, some he still holds.
Put John Lee Lord (he is one now) into Google and you'll find a few interesting articles.
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