# Vecima Networks



## LBCfan (Jan 13, 2011)

My son works in R&D for this company. He's a bit of a Geek and not someone who can read a balance sheet or predict things. About 2 years ago he mentioned that he thought that if the project he was working on was a success, it would be cheaper for the customer to buy the company than the product. He also mentioned that his co-workers were afraid that the company would be bought for its patents/IP.

I bought some, but not enough. It has more than doubled since.

Now we get good news: http://thestarphoenix.com/business/...rks-reports-outstanding-third-quarter-results The stock doesn't move.

I still like it, but wonder about the downside. One is that it is >50% held by the founding family. The other is that it's a niche player in high-tech. 

Anyone have any thoughts?


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## humble_pie (Jun 7, 2009)

what a good-looking company. I'm glad you bought "some" shares, which have since doubled. I haven't looked up the charts yet but i won't be surprised if, even at these levels, vecima is still looking bullish.

i can think of 2 weaknesses. Many valuable & deserving canadian small-cap enterprises fare unpredictably in our small public market because, if the institutions are not buying their shares, then there is no market for their shares.

a possible cure could be a nasdaq listing. Perhaps it would be helpful to look into institutional ownership of this stock. Does the CPPIB hold shares? vecima is the kind of investment they normally go for.

a 2nd weakness could be controlling ownership by the founding family, as you mention. Are there any signs the company is looking for a buyout? would you be able to develop a theoretical buyout price?

intertwined with this goes the performance of Sumit as CEO, compared to the founder who i assume is his father & who still appears to be directing strategic development as chairman. Will Sumit take vecima to the next level or is he merely a caretaker for his father's enterprise. Many family-owned hereditary businesses do eventually end up in trouble, witness bombardier.

no matter how the vecima story turns out, it looks like a fine place for a software engineer to work - plenty of talent & stimulation - so congrats to your son.


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