Good evening! I apologise for today's report being very late, there have just been too many late nights & early mornings lately, and I just couldn't get out of bed this morning. Feeble excuse I know, but there we go. Anyway, there are some important results today, so to keep the sequence of reports intact, I'm catching up now.
Vislink (LON:VLK 42.88p) is a share that I've written about enthusiastically before, and hold in my personal portfolio (and is also held in a small caps Fund which I provide research for). It first caught my attention, and I bought shares at 30.5p on 25 Mar 2013, see my article here. This was really a prime example of the type of small cap investment I like, where risk/reward is skewed heavily in the investor's favour - there was limited downside risk, and a low likelihood of the downside scenario playing out. The cash on their Balance Sheet was more than 25% of the market cap when I bought in, and it had a 4.1% dividend yield at the time, plus it had just reported a return to profit, and a PER of 12. Equally important was the underlying reason for this - a turnaround strategy under new management, with a proven track record elsewhere, was gaining traction.
Furthermore, VLK is market leader globally in its niche of specialist broadcast equipment, and spends a lot on R&D, which means that it's market position is most likely to improve over time, if the R&D budget is spent wisely. There was also good growth potential from its small security products division. I met management twice, read the Annual Report & broker notes thoroughly, and generally put a lot of time & effort into researching it, all of which reinforced my view that there was a high likelihood of making a 50-100% gain on these shares from my buy in price of 30.5p, with a likely timescale of 6-24 months at a guess.
Anyway, that sets the background as to why I bought Vislink shares in the first place, and it was clearly a good decision, because they have today announced strong interim results for the six months to 30 Jun 2013.
Turnover was up 1.8%, at £28.0m for H1, but an improved…
