VED - Veda Group

[ROE]

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.

Not many business does that

My opinion on this is, the business that does this is the one that want to keep on rolling it debt
due to the reliability of the cash flow, they can keep roll on the debt knowing
they have a reoccurring revenue stream that can easily service it.

Just a guess maybe worth a shot to the company CFO asking why they doing it

 

[Ves]

I don't think it has to do with earnings quality when interest charges are shown in the "financing" section of the cash flow statement.

I tried to read the Accounting Standards (AASB 107, in particular), but it does not seem to provide a definitive answer for non-financial institutions. It appears to leave it up to the discretion of the entity to best represent the cash flow situation. . However, my gut feel, and take it with a grain of salt, is really why they originally borrowed the Funds (was it for operational purposes or was it for something not related to operations). The fact that private equity has been involved with this company probably suggests that the debt is on the balance sheet because they were leveraging their own returns, rather than using it for operations, hence it being in the financing section on the cash flow statement.

More interesting to note is the fact that the interest expense on the cash flow statement does not seem to match the P & L in the years that I looked at. The expense on the P & L always seems much higher. Are they capitalising interest on their loan?

 

[Huskar]

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.

Under IFRS you can classify interest paid as either operating or financing cash flow (cf US GAAP which only allows you to classify as operating).

Obvs need to add this back when comparing operating cash flow with other companies or calculating free cash flow to equity.

 

[JTLP]

From a high of $2.50 to coming all the way down to $1.91 today...Veda has really come off the boil. It's in a pretty solid downtrend as well. Credit demand trends show a fall of 3%, driven by slow credit card applications and a sharp fall in personal loans.

You'd think with low interest rates and the government mandating this sort of credit history these guys would be off to a flyer...so what gives?

 

[So_Cynical]

I have been buying Veda based on the fact that i want them, i thought $2.10 looked like holding for a while and entered there with my main portfolio only to see the SP weakness continue, picked up a few on Tuesday at $1.94 for my super fund after selling out of WTF.

Credit reporting and info gathering in general, big data i think its called...i just want exposure at the current price, keen to buy more.

 

[McCoy Pauley]

I haven't done any detailed research into Veda Group at the moment, but my employer uses their services to conduct credit checks on new clients. They switched to Veda Group primarily because their previous provider had inaccuracies in the information recorded and reported.

In my view, there are probably two key risks for this type of business - (a) misrecording and/or misreporting credit information which would have a detrimental effect on the individuals concerned who then seek to take action against the provider; and (b) government regulation changing the playing field.

On the second point, I read earlier this week a call to extend the credit reporting provisions to small businesses because currently, under Australian law, there is apparently no capacity for the credit/repayment histories of small businesses (unless they are owned/operated by individuals in sole trader or partnership capacity) to be traced. That would be a positive for Veda Group if it became law, but like MMS, a negative change to the relevant laws could have a powerful impact on Veda Group's bottom line.

 

[Faramir]

I wanted Veda for the last 5 months. There are many reasons why I want Veda but the main ones are listed here by others. Back around March (both 24/3 and 26/3) it reached a high $2.55. Then I watched the SP drop slowly but surely. Today I lost patience and brought them.

900 shares @ $1.8850 3:56pm.

Just beat the stock market close. I did rush back to the office just to buy them. It traded between $1.88-$1.90 today on 709,506 volume (not that much). The strange thing I can't explain that there were more buyers than sellers. The buyers must have been just sitting there, waiting for the sellers to drop their price. Can anyone please explain these screen shots? Was I foolish to make a default selection of "Market Price"? I just wanted the transaction to be over before the close of trading.

The question is am I too impatient? Should I have waited for another day, week, month? I missed a few good opportunities due to my waiting.

It is my fifth set of shares. My second lot under 8 days. (I am supposed to be very inactive - still need to find time to read a few books.)

Final closing price is $1.88, I lost $4.50 i.e. $0.005 per share.

 

[robusta]

I wanted Veda for the last 5 months. There are many reasons why I want Veda but the main ones are listed here by others. Back around March (both 24/3 and 26/3) it reached a high $2.55. Then I watched the SP drop slowly but surely. Today I lost patience and brought them.

Funny you say this I've wanted a piece of VED for ages and actually had an order in to buy at $1.91 a few weeks ago but had to cancel to deploy the last of my capital into NVT.

900 shares @ $1.8850 3:56pm.

beat the stock market close. I did rush back to the office just to buy them. It traded between $1.88-$1.90 today on 709,506 volume (not that much). The strange thing I can't explain that there were more buyers than sellers. The buyers must have been just sitting there, waiting for the sellers to drop their price. Can anyone please explain these screen shots? Was I foolish to make a default selection of "Market Price"? I just wanted the transaction to be over before the close of trading.

The question is am I too impatient? Should I have waited for another day, week, month? I missed a few good opportunities due to my waiting.

It is my fifth set of shares. My second lot under 8 days. (I am supposed to be very inactive - still need to find time to read a few books.)

Final closing price is $1.88, I lost $4.50 i.e. $0.005 per share.

This question of patience is one I have been battling with since I started investing. You can drive yourself crazy with trying to pick the best entry point. From here the sp could fall, rise or trend sideways. In the middle of that you have FOMO (fear of missing out). Zoom out to the general market and no one knows where it's going either. The only answer I have for myself is to buy good businesses at reasonable prices (you seem to be doing ok there), hold them through the fluctuations and try to keep some capital in reserve to take advantage of opportunities that will inevitably present themselves in the future. I have often failed on the last point but luckily those dividends and my savings keep on topping up my capital.

Another way to perhaps pick a better entry point may be to average in, say you want VED to be 10% of your investments for example, take an initial position worth 5% then you can always top up if a better price is offered down the track.

 

[Faramir]

Hi robusta

Thank you for your encouragement. I am 50% spent. It took me over 4 months. I could have brought everything left, right and centre - 'species', miners, every bank at their highs at the beginning of this year. BUT I read this forum and took my time. So I do not think I will buy any more of anything until I save more (it's been tough this year) OR a great opportunity arises. The more I look at VEDA, the more I am convince this is a great company. I am definitely concern about identity theft and I guess that is why VEDA can serve these concerns. Identity theft is something I fear about.

If VEDA drops, I will try not to notice. It is the long term I am looking for.

 

[So_Cynical]

This question of patience is one I have been battling with since I started investing. You can drive yourself crazy with trying to pick the best entry point.

I Simply pick a price point to buy at and under, buy more if it falls more than 15% (after careful evaluation of the information that caused the fall) hold if the price holds or the trend continues or establishes...re-evaluate after 3 months.

Don't stress, you can only buy at the right time by sheer dumb luck...much easier to have a bigger target via buying at under a price point...$2.10 was my VED price point.

 

[ROE]

Nice result, earning exceed prospectus, double dividend payout from what it say in the prospectus ..enough said

 

[ROE]

I wanted Veda for the last 5 months. There are many reasons why I want Veda but the main ones are listed here by others. Back around March (both 24/3 and 26/3) it reached a high $2.55. Then I watched the SP drop slowly but surely. Today I lost patience and brought them.

900 shares @ $1.8850 3:56pm.

Nice timing in light of the result .... I couldn't get in at IPO so I paid premium at listing because these are the business I understand best and willing to pay the premium for them and over 10-15 years it make little differences

 

[goccipgp]

Would like to see a break above 2.24. Got upgraded to a buy at au stoxline.

 

[galumay]

Would like to see a break above 2.24. Got upgraded to a buy at au stoxline.

Not sure what relevance linking all your posts to a commercial service has? (stoxline). If you look around there is always some commercial service spruiking just about any given share as a sell, hold or buy!

I have had a look at VED, but its very hard to value floats like this, i get an IV of under 60c with its current financials, I think its a better business than that, but how much better is the million dollar question!

 

[Faramir]

One of my great stocks picks (and my fifth one in total). Thank you ROE.

 

[ROE]

https://www.getcreditscore.com.au/

 

[So_Cynical]

Up 14% over the last 6 trading days, 4c dividend to come...so happy i jumped all over this when i did.

 

[ROE]

Up 14% over the last 6 trading days, 4c dividend to come...so happy i jumped all over this when i did.

went XD today and up nearly 4% in a red ASX..now that is a market DARLING

 

[galumay]

I have never really understood the business model, who actually pays to get their credit details??

Obviously it must be more common than I suspect or VED wouldnt make any money!

I had a look at their website, but I wasnt inspired to brush the cobwebs off my wallet.

 

[ROE]

I have never really understood the business model, who actually pays to get their credit details??

Obviously it must be more common than I suspect or VED wouldnt make any money!

I had a look at their website, but I wasnt inspired to brush the cobwebs off my wallet.

Virtually all business provide credit will use Veda or similar service
Every time you apply for anything to do with credit
Phone contract, credit card, home loan, business loan, car loan
The list goes on and on

The provider will do a credit check on you to see if you are a worthy
Person to give credit to.. Veda has the largest credit database on Australian
So business pay Veda to access these information

Not only that internet make identify thef and various credit fraud easy
Veda has subscription service to protect you from such hazard
They alert u right away as soon as someone use your name to apply for credit
It doesn't have to be stranger it still be you and you get an alert

It doesn't care who apply as long as your name is on it
It alert you and if it wasn't you, you ring up the instruction and put
A stop to the fraud before it even get off the ground

It is one thing most good financial advisor and accountant recommend you sign up
I use Veda service for a while and that how I know them way before the float

Veda alert is like insurance against identify theft and your financial well being
Hope that helps explain a bit ....
It is a service people use multiple times multiple years and repeatable
One of the most powerful business model -

PS: recent regulation change in March this year on credit reporting
Make it a favourable tail wind for the business to grow earning rapidly
Read the whole thread I mentioned it some where