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Van Elle (VANL)

Discuss Stock buying Shares, tips and ideas for stock market dealing
brightncheerful
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Van Elle (VANL)

#14991

Postby brightncheerful » December 14th, 2016, 12:38 pm

VANL is a piling and ground engineering contractor - https://www.van-elle.co.uk - established about 32 years ago and floated on AIM in October 2016 at sp £1.00 The float raised about £80M.

I paid £1.01. I bought because VANL seems free of emotional baggage, comes over as a well-managed tightly run ship, could well be on the acquisition trail, also would made a super take-over candidate itself. However, it doesn’t have the field to itself, and Mr Ellis, the founder has made his pile (excuse pun) so might have decided to float to give the company immortality and its troops a future.

After a slow start, the sp dropped to 99p, a mention in a Sunday newspaper resulted in a surge of interest. The recent trading update ahead of the first results 17 January next has contributed and the sp has risen to £1.30

At the current sp, market cap is £103.20M. Since the float brought in about £80M of interest-free money from investors, the net value of the company is only about £23.3M which strikes me as more realistic for a company whose work-load contracts is so I’ve read in the range £65,000 and £100,000 per job.

The daily volume for sp isn’t that much suggesting a stock shortage, possibly market-maker manipulation to give the impression of demand momentum. I am wondering whether the sp hasn’t overshot and it might be an idea to take my profit.

What do you think?

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