VSL vision systems limited.

*worth watching valuation $1.13*

  1. 34,607 Posts.
    hi guys..

    we'll keep a close eye on (vsl)..

    huntley's have a recommendation buy..

    with a valuation of $1.13

    has bottomed recently at 89cents, we'll wait and see any uptrend..

    Recommendation: Buy
    While visibility remains low we remain positive that the significant R&D program of the past three years will be value-creating. VF&S sales are expected to benefit from continuing increases in capital expenditure commitments among both technology related industries and the broader economy as conditions improve globally. We are also expecting sales from the instrument business to improve benefiting from the launch of new products and the commencement of direct sales of Novocastra products through the Biosystems sales network. The effects of currency fluctuations on the impeding recovery are of some concern and are expected to result in muted sales of VF&S products despite the global recovery. VSL is currently trading at 9.9x (pre-goodwill) FY05 earnings. We believe the majority of bad news has past with the core business moving to a more favourable position in the cycle. We value VSL at $1.13, implying a PER of 12.2x (pre-goodwill) FY05 EPS and dividend yield of 5.6%.

 
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