Monday 22 January 2018 ShareProphets: The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares

Veltyco - cracking trading statement but...

By Tom Winnifrith & Steve Moore | Thursday 6 July 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

At its AGM in the tax haven and cultural desert that is the Isle of Man, Veltyco (VLTY) was in bullish mood. The brief statement reads:

"The Board of Veltyco is pleased to confirm that trading in the first six months of 2017 has been strong in all business verticals. The revenue and EBITDA for the period January to June 2017 are significantly ahead of market expectations. The Board has confidence in the continued success of the Group and of the business exceeding market expectations for 2017".

The shares are - consequently 65-68p giving a market cap of £49 million. Which is about five times annualised Q1 sales. Not EBITDA let alone real profits. These shares seem to have momentum and that may take them higher but we are nervous about the market as a whole, the shares have exceeded our 60p target, and the valuation prices in a lot of good news.

Tipped on January 17 at a 35p offer we suggest banking an 86% offer to bid gain made in less than seven months on this share tip.Take Profits.

This article first appeared on the Nifty Fifty website which Tom Winnifrith runs with Steve Moore & Lucian Miers. To access the website ahead of the next share tip from Tom & Steve shortly and a new shorting piece from Lucian later this week click HERE

Filed under:

Never miss a story.

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

More on VLTY


Comments are turned off for this article.

Site by Everywhen