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VED - Veda Group

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Veda Group is a data analytics company and the leading provider of credit information and analysis in Australia and New Zealand.

Veda's customers use data intelligence provided by Veda to make decisions on credit risk, verify identity and check employee background, reduce identity theft and fraud, and undertake digital marketing strategies.

http://www.veda.com.au

Veda Group Limited (VED) is expected to list on the ASX on December 5th, 2013.
 
Interested in this stock, i know some people that have paid accounts with Veda, people that are very credit concious and that are happy to pay the 50 odd bucks for yearly membership..Veda notify members by email when any change is made to their credit file, they also provide information on how to build a good credit rating etc etc.

Will watch with interest.
 
This is a keeper I have them ... A stock to hold for a long long time
It's going to be the Credit Corp of credit report world
The jewel in the new financial regulation come March
 
40% increase and stopped at $1.75. PEP will retain a 63.5 per cent stake in the company who has the capacity to control the election of directors and dominate shareholder votes.
 
trainspotter said:
40% increase and stopped at $1.75. PEP will retain a 63.5 per cent stake in the company who has the capacity to control the election of directors and dominate shareholder votes.
Click to expand...

when someone has majority of their money in the business it can be a bad thing according to analyst ?

Yes they can dominate the board, they can elect their own directors or whatever, they owned 63% of the business...they have their full body skin in the game this is the best outcome for retail holder.

Just like they think high volatility stock is considered risky because of High Beta, a risky stock is a stock with bad management, balance sheet and cash flow not high beta.

May as well not buying JIN, FLT, DMP, CCP, REA, CRZ and the rest because management has the most skin in the game and majority of the stock when management has the most in the game
they perform and boy do they perform exceptionally well compared to the market index...
 
trainspotter said:
I thought I quantified that by saying a 40% increase on debut
Click to expand...

Sorry I am not aiming at you ...lot of analyst in paper saying 63% owned by management is a bad thing
They obviously havent tally up all the stocks that management has large holding or family owning ...

they outperform the index multiple times
 
Random things that jump out at me skim reading the prospectus (where I could be wrong, I looked at it for only 15 minutes):

In the prospectus under the reasons for the offer being conducted on page 6, one of the reasons is that the offer is being conducted to pay for the offer. It is also repeated again on page 20. On page 20 it only gives two reasons for the IPO. The first is to pay down the debt and the second is to pay for the IPO. Paying for the IPO is not a reason to have an IPO, obviously.

Note page 21 where dividends will be franked until at least 2016 because the company won't be paying any tax for some time due to 124.1m in losses prior to 2013. They lost money in 2011 and 2012. Interestingly, it looks like they are targeting a 40 - 60% NPAT dividend. They weren't paying any dividends previously to themselves so it looks like it's to please shareholders. It looks like they are expecting a 1.6% dividend yield unfranked based on the IPO of $1.25.

Assets of 1 billion dollars comprise of approximately 86% goodwill.
 
This business is ticket clipper and data processing it
Doesn't need large asset based like industrial to generate high return

most of their business is data and customers info database and hence
Large good will.

This model is superb, high margin, low cost and leverage earning
A beautiful combo
 

Well it would have been ok if I was able to enter at $1.25 but the price now is too high imo.

Interestingly, Roger Montgomery valued this one at $1.77. I was curious as to how he arrived at that. I decided to use his formula (the Simmons one with his 10% discount) and I didn't get that amount. I suspected he would not be using that formula anyway. It doesn't really work because either there is too much good will which produced a poor RoE and you get a very low valuation or you take it out and there is negative equity and the formula doesn't work.

I played around with the numbers and I think I figured out how he valued it. I would say it's within a range of $1.70 and $1.85 using the forecasts in the prospectus. At any rate, it's too expensive to buy at $1.92 imo right now. I would have maybe bought in at the IPO price though assuming I could wrap my head around the business etc.
 

It's pretty standard to have losses on the books for PE owned companies as they want to pay as little tax as possible and their entities are loaded up with debt. Have a look at Healthscope for example (which although equity is not listed because hybrids are they must still report financials).

PE also won't pay themselves dividends preferring to cash out in other ways..

High goodwill figure not always bad sign - asset-light business so others have clearly thought tangible book is a poor measure of value of earnings power! Q is whether this is fair current value of earning power
 
ROE said:
This is a keeper I have them ... A stock to hold for a long long time
It's going to be the Credit Corp of credit report world
The jewel in the new financial regulation come March
Click to expand...

They say Veda is the perfect storm. Some people say it's going to sky rocket just as XRO did from $2.00 to $41.00
What are your thoughts on Veda in the next few months considering there could be a crash?
 
Milanese68 said:
They say Veda is the perfect storm. Some people say it's going to sky rocket just as XRO did from $2.00 to $41.00
What are your thoughts on Veda in the next few months considering there could be a crash?
Click to expand...

I believe this business will do well over a long period of time, what happen next week or next three months I have no idea.

Long term if it deliver increase profit and dividend then the market will price it accordingly, at what price I have no idea.

I don't buy stocks based on some people predicting there may be a crash or a bull market around the corner, I buy business so it can withstand through the cycle of up and down and deliver me adequate return for my capital.

Analyst or expert prediction has little bearing on my decision.
 
That was interesting. It can help as a provider of credit information and analysis. No one is able to be a sports team owner, generally, without being filthy, stinking prosperous. However, that is not always the case, as some teams actually trade on stock markets and individuals can purchase shares. Some publicly-traded sports teams aren't exactly bad choices, either. If you need money for the bills instead of taking it out of your investments, get a short term loan. I have heard that Veda is a data analytic business. It enjoyed a stellar debut on the Australian Securities Exchange, with shares opening more than 40 per cent above the initial public offering price.
 
In on today's double bottom at $2.10, swapped ALZ for VED, great time to sell meets great time to buy, that's my thinking anyway...really keen on Veda.
 
Just having a look through VEDA, noticed that they put their interest expense in with financing cashflows as opposed to operating cash flows...

Is this common among private equity?

I know TLS does this aswell but other than that I don't see it very often.
 
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