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.
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