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Vela Technologies PLC

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@cryptotrader,

Yes, I have acquired shares well over a year ago or maybe even two at slightly lower prices and similar prices that exist today. I really like their investment in BTL (listed in Toronto, Canada). 

Since I posted the RNS details the very next day it went down 20%+ as this is AIM after all!

Vela has lots of potential and its market cap is pretty low and very attractive. That does not necessarily mean it is a good investment but I wanted exposure to BTL and I really like their investment in Portr Limited.

I am acquiring Coinsilium and KR1 (formerly known as Kryptonite1 PLC) on any major price weaknesses as I think those two will be 'gems' of the future in the Crypto / Blockchain / Tokenisation space. 

Disclosure: I am not trading Vela, Coinsilium and KR1. I am investing in them for the long term. 

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Vela Technologies PLC announced the Argo Blockchain news today via RNS. The share price has been diabolical and there has been plenty of dilution which is one of the biggest risks trading in AIM. Companies list on AIM to raise capital and the downside of this is large shareholder dilution. 

Vela Technologies

Update re. Argo Blockchain's strategic partnership

https://www.investegate.co.uk/vela-technologies--vela-/rns/update-re--argo-blockchain-s-strategic-partnership/201905131322428479Y/

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Vela has released the following RNS this morning which I include below:

Vela Technologies

Vibe Group Update - Investment by Candy Ventures

https://www.investegate.co.uk/vela-technologies--vela-/rns/vibe-group-update---investment-by-candy-ventures/201906250700052556D/

Vela is seriously undervalued when you compare it to the Net Asset Value (NAV). Its market cap is extremely low in my opinion. However there has been some serious dilution. It does offer a compelling proposition from a 'Value Investing' perspective but the risk is extremely high.

Someone I know is looking at investing further at these very low prices. I think the bottom has been formed and it is unlikely there is any further downside. Great investing is all about timing and identifying those companies which are undervalued and the market has simply mis priced. Time will tell whether this is the case or not but I include the current chart below:

1078809751_VelaTechnologiesPLC_20190625_16_56.png.c148fed6fb35ed758d388bded5ea052f.png

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Vela Technologies PLC is clearly undervalued when you look at its valuation compared to its Net Asset Value (NAV). The question is whether Vela has found the 'bottom' and share price appreciation is on the card along with the general positive momentum in Cryptocurrencies?

An important point to remember is that yes Vela has invested in Blockchain and Crypto related companies but it is more than that. It has a wide and diversified portfolio and many of its investments have nothing to do with Crypto or Blockchain. I think the market may have painted Vela with the same brush as some of the out and out Crypto / Blockchain companies. 

There has been heavy dilution which presents a real risk and also lack of investor interest poses another risk. The upside potential exists and it is just potential until the price action supports it. This is a high risk investment so one must consider it based on risk/reward but it is certainly not for everyone.

Note: Vela is not just a company which only invests in Crypto / Blockchain projects. It has a diversified portfolio away from this niche area.  

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Vela in my personal opinion is under valued by the market at this moment in time. I mean a market cap of around £1.5m and a ridiculously low valuation make this an attractive value investment for the longer term. There has been plenty of dilution which is always a risk with AIM listed shares.

They have released the following RNS this morning:

Vela Technologies

Update re. BlockchainK2 Investment in RealBlocks

https://www.investegate.co.uk/vela-technologies--vela-/rns/update-re--blockchaink2-investment-in-realblocks/201907050700055611E/

Now one could argue that this company has a low market cap and valuation for a reason. That it is a rubbish company. That may well be possible but I have sent messages to Anthony Laiker and the communication we have had has filled me with some confidence. Some of the companies they have invested in are very interesting and exciting. This has potential but whether it can fulfil its potential is another matter. By just looking at the assets it holds and its valuation there seems to be a disconnect. I think once the market realised how undervalued this company is then there should be some serious share price appreciation. 

To me it seems like the share price has more or less bottomed at price current levels so the only way is either up or this whole investment company will fail. 

Disclaimer: I hold an investment in Vela Technologies PLC. 

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Vela is now starting to release positive news flow. For me this needs to equate to a rising share price. If a share does not move when positive news is being released then it is a red flag for me. Vela suffers from massive dilution which is going to impact share price appreciation. It is going to take some very heavy buying over a sustained period for the share price to motor but if it does then this could be an excellent value investment at current price levels.

Below is the latest RNS Vela released to the market this morning:

Vela Technologies

Update re. WeShop Limited

https://www.investegate.co.uk/vela-technologies--vela-/rns/update-re--weshop-limited/201907091032179384E/

Based on the value for Vela's stake in this alone at current prices the market cap / valuation seems very low. Of course the flip side is that it may be low for a reason.

I have heard though yet to be confirmed by Vela that another one of the companies it has invested in (Rosslyn) has got two nice contracts. This should be filtered through to the media shortly. 

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The positive news flow is starting to increase with Vela and it has released the following through an RNS this morning:

Vela Technologies

Update re. Interbit Ltd

https://www.investegate.co.uk/vela-technologies--vela-/rns/update-re--interbit-ltd/201907120700053066F/

What is required now is the all this positive news to be released by the market and the share price to appreciate. Dilution has really hindered that prospect. The company is clearly undervalued and mispriced based on its current share price but the dilution effect of AIM has had a major impact. 

I think the share price has bottomed but it will take some major buying to move this share price upwards significantly. I think topping up and being at current price levels could be rather fruitful to those who consider it. 

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This one seems very good opportunity but last time it was holding around this price for a around two years and brexit ahead will it affect it in some way also what sort of holding time you will be thinking of?

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@MYK1,

This is a very good question. Anthony Laiker is a very smart man. Whenever I have communicated with him I have been impressed with his honesty and the way he explains things. His vision for Vela is admirable. Of course there is execution risk but my personal opinion (this could be biased) that Vela has huge potential and is seriously undervalued by the market based on the assets it owns (ie the companies it has invested in and has an equity stake in).

It would be a long term investment so from here I would say around five years at least if not more as that is what is required for long term wealth creation. 

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There is some real traction in Interbit (formerly BTL Group) which Vela has invested in. The news flow is stating to come through. I think Vela's share price may have bottomed and there could be significant upside from these levels if this news flow continues. It is a big if as there are no guarantees that it will. 

Update re. Interbit Ltd - update on CitizenOS Project with Xinova LLC and Helix Applications Inc

https://www.investegate.co.uk/vela-technologies--vela-/rns/update-re--interbit-ltd/201907221507253175G/

 

 

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Some more news released this week by the company to the market via RNS. A lot of investors may not be aware that Vela has an equity stake in Argo Blockchain PLC which is listed on the AIM market. However, Vela, has a more diversified portfolio of investments. 

Vela Technologies

Update re. WeShop Limited

https://www.investegate.co.uk/vela-technologies--vela-/rns/update-re--weshop-limited/201909060700064236L/

It seems that Vela has bottomed and we are seeing a price floor at the current price levels. The problem Vela has is delivered share price growth as there is little market interest and appetite in the company. It does however have some very interesting investments in its portfolio if one decides to look deeper. There is value and it does certainly seem that it is undervalued by the market (maybe for good reason) but there is certainly some major upside potential but it is only potential. 

 

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This is an interesting piece from Align Research but it is highly likely that Vela have paid them to do this piece!

http://www.alignresearch.co.uk/wp-content/uploads/2019/10/Vela_Technologies_Align_Research_Initiation_October_2019.pdf

 

http://www.alignresearch.co.uk/cpt-company/vela-technologies/

IMPORTANT: Vela Technologies is a research client of Align Research. Align Research own shares in Vela Technologies. 

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I think Vela are finding it extremely difficult to raise capital hence why they are selling assets to increase their working capital. This is just an assumption I am making but based on a depressed share price then it would not surprise me one bit.

Vela Technologies

Update on investment in WeShop

https://www.investegate.co.uk/vela-technologies--vela-/rns/update-on-investment-in-weshop/201912030700094167V/

 

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Thanks TrendFollower. I agree that Vela, aside from refocusing investments in their portfolio, might be facing some cash flow challenges as indicated by their financials. I don't know how much equity they have left or opportunities to raise more.

Their early blockchain focus was tragically mistimed and the collapse basically wiped out many similar small funds. I think with the shifts in automated and high frequency trading (currently ~85% of value weighted trade per day), most algorithms won't pick up on them until they disclose 2 or 3 consecutive quarters of gains. By which point they could well be done for. I still have a little ~£100 punt on them in case they survive and are able to turn multiples around on the portfolio, but what is really interesting to note on the Weshop divestment is that is was spurred on by Two Shields, and notably at a loss. (598p acquisition versus 550p disposal). I don't know what level of control Vela has over Two Shields, but it's not a promising signal to sell at an 8% loss after a year in a sector known for long-burns.

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@ChrisRobUK,

I agree with your sentiment. Vela has some really interesting investments but it did not need to get involved in risky plays like Argo. This was in my view a sign of desperation. Argo is a play on Bitcoin and Bitcoin's price rise and then fall this year has been too risky for the likes of Vela to dabble in. 

I think Vela are really going to struggle to stay alive as they have very little income and are resorting to selling their assets to fund the company's cash flow requirements. This is not a good sign in my opinion. 

Time will tell but the price action tells a story. 

445812056_VelaTechnologiesPLC_20191210_18_52.thumb.png.053441c233b7dda01171d790cce8e5bb.png

It is simply not tradable and illiquid. 

From an investment perspective one could argue that now whilst there is fear and blood on the street there could be value in investing now for the long term but that too in my opinion at current price levels would be merely gambling and speculating. The risk/reward does not favour an investment either based on price action and the prevalent longer term trend.

For me PORTR is the gem in its portfolio. After this Interbit. The others I am not so sure about. 

Lack of positive news, lack of any significant revenues (though this is an investment vehicle so it is a longer term investment and revenues should not be expected) and any material increase in valuation which can be justified and sustained as led Vela's share price to this situation. 

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