After struggling through the recession and several years of restructuring, Vislink’s (VLK) products - wireless cameras, lightweight satellite terminals and surveillance equipment - are selling well and generating big profits again. It also boasts a hefty cash pile that account for over a fifth of the current market cap and ambitious targets to boost underlying operating profits by over 150 per cent by 2014. A to that the attraction of the shares' low rating and a tasty dividend more than twice covered by earnings, and it's no wonder directors have been buying shares. We think others should follow suit.
- Director share buying
- New products selling well
- On track to hit ambitious targets
- Shares trade at discount to sector
- Lacks sales visibility
- Acquisitive growth is risky
Vislink’s wireless cameras and compact encoder systems are used extensively in sporting events such as Formula One and Premier League football. In fact, it’s the market leader with about a 20 per cent share and management reckons about 70 per cent of all outside broadcast video is delivered by Vislink products. A reputation for technological superiority means the company is more resilient to pricing pressure, too.