Friday, November 20, 2009

VSCP

I just looked at the VSCP 3Q results, they are not great, but thay are still in their planned conservative target. In my opinion, the market is still overvaluing the rebranded VSCP. They are still not profitable and they have an E/R value of 2.69 and a P/S of 3.08. Now that they finished the DOD work they are exactly like any other Imaging CRO( BIOC has an E/R of 0.67 and a P/S of 0.86). Therefore, the rebranded VSCP valuation is larger than its competitor. I have to clarify, that the market is a mystery to me, but how is possible that:
  • a non-profitable company
  • that has not differentiated products or services,
  • that has not done any strategic alliances in the last four years,
  • that has reduced its service portfolio, becuse it has not been able to get any more DOD jobs
has a better P/S ratio than their competitors?

Other mystery of the market is the existence of a buyer(s) that are trying to keep VSCP stock higher. I’ve seen in this stock that there is some kind of low volume speculation (100 shares) that constantly pushes the stock from a low value to a higher value. 
More mysteries, the University of Rochester (UofR) sold several thousand shares the due date of the option conversion. How is possible that VSCP and the UofR didn’t agree to postpone the sale at least one day?

As a fouder, I want that this company to grow bigger, but it looks like that is not the vision of the current BOD or management.

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