Market's view on Vianet Grp
Published on April 2024
- There is noticeable director buying which is seen by some as a positive sign.
- Interest in VNET dates back to its days as Brulines, due to its pioneering beer-monitoring technology.
- Comparisons with Newmark Security which has seen substantial growth and profitability in 2023.
- Mention of potential growth in H2 following a switch from 3G to 4G.
- Concerns about the company’s market cap in contrast to its financial results.
- Discussion of a recently conducted results presentation.
- Observations on the company’s ability to quickly implement new technology and expand unit rollouts with operators.
- Investment moves by a Non-Executive Director are noted, suggesting confidence in the company’s future.
- Ongoing discussions about the company’s readiness to transition from a position of potential growth to actual growth.
- Analysis of cash spending on development and its implications.
- Sale of stocks by an investor, humorously suggesting it might lead to a price increase.
- Evaluation of the company’s financial practices, specifically around cash conversion and amortisation.
- Speculation about stock price movements linked to R&D tax credits.
- Positive reaction to the announcement of a significant acquisition providing a strong foothold in the US market.
- Correction about a misstatement in a financial article regarding the company’s branding change from Brulines to Vianet.
- Discussion about the company’s diversification strategy away from pub monitoring to include vending machines in the UK and US, highlighting its growth potential despite a declining pub sector.
- Concerns about broader market conditions affecting stock prices, citing instability in global banking as a potential risk factor for all stocks, including VNET.