SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Vicon Industries ( VII )
VII 0.206-24.6%Jul 11 5:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Hank who wrote (51)3/12/1998 12:26:00 PM
From: Neil Kalton  Read Replies (1) of 118
 
Hank,

Do you know when the secondary is set to take place? If the price goes down too much further VII and FAHN may elect to "postpone" the offering indefinitely.

From what I can glean from the annual report and other materials VII is at an important juncture. While, on the one hand, sales and orders are going well, VII desperately needs more capital to fuel further growth. In terms of long-term outlook the secondary is a good idea. However, the recent runup had attracted so many momentum investors who have short term outlooks that any somewhat negative news (secondary = dilution) was inevitably going cause a significant selloff.

A (roughly) 50% increase in shares outstanding will cause significant dilution. However, prior to the secondary it was estimated that VII would have earnings somewhere in the $1.30 - $1.50 range for 1998. Even with the dilution VII is still probably looking at earnings of over $1.00 in 1998. If so, $9 looks like a bargain for a company that has a historical PE range of about 10-25. The thing that makes me most nervous is not the secondary but the concerns over the Pacific Rim. Does anybody know approximately what portion of VII's business is done in the Pacific Rim?

-nk
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News