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Insider buying at ViXS Systems

ViXS Systems
ViXS Systems
ViXS VP Worldwide Sales Perry Chappell is one of three company insiders to make recent purchases of the company’s stock in the open market.

ViXS Systems (ViXS Systems Stock Quote, Chart, News: VXS.TO) hasn’t done much but go down since going public last year, but some of those closest to the company think its shares are now cheap.

Several ViXS insiders have made recent purchases of the stock in the open market. On October 8th, the company’s VP, Infrastructure and Networking Sales John Pomeroy bought 1000 shares at $1.13, following up on the purchase of 2000 shares at $1.17 he made on October 3rd.

Pomeroy was joined by the company’s Chief Technology Officer Indra Laksono, who bought 8000 shares at $1.15 on October 7th. And ViXS VP Worldwide Sales Perry Chappell bought 13,600 shares on October 3rd, at prices ranging from $1.15 to $1.20. Chappell’s buys were an averaging-down on the 30,000 shares he bought at $1.90 on July 30th.

The optimism inside ViXS is mirrored by at least one analyst’s view of the company.

Paradigm Capital analyst Daniel Kim says investments into emerging technologies have made ViXs a world leader in video processing. He says that concurrent with its loss of market valuation, the company has been positioning itself with to capitalize on the increasing demand for the transcoding and processing of next generation 4K Ultra HD and HEVC content. He points to recent design wins that have added to an already impressive product portfolio. “Now having the benefit of time to “reset the clock” with a heavy investment in R&D, VXS has emerged stronger than ever,” he says.

In a research report to clients On October 3rd, Kim initiated coverage of ViXS with a “Buy” rating and one-year target of $2.75, which implied a return of 150% at the time of publication.

At press time, shares of ViXS Systems were down 10.6% to $1.10.

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About The Author /

Nick Waddell
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

Comment

  1. All the “insiders” that are buying have big options and stock positions and they are buying relatively small amounts in attempt to put lipstick on this hog. I’ve worked at VIXS(3 years) and witnessed from the inside how badly ViXS is managed; that’s why I sold every share as fast as I could. The proof is in the stock value. In less than a year the stock has gone from $4 to $1.06. Even the way they went public was strange(amalgamation with a defunct company?)The board of directors is MIA and has done nothing but rubber stamp bad decisions for 12 years. A 12 year old start-up should raise questions on it’s own. Heads should roll. New management is ViXS’ only hope. The fish stinks from the head down.

  2. The company made lots of claims late last year they had all these deals non of which came to fruition. They then stated they were not going to provide forecasts, and had to resubmit financials. The kicker is when one of their biggest investors and chairman of the board stepped down to get rid of his institution’s ViXS stock causing the market to further lose faith in this company. I became frustrated they attended one of the biggest shows in the broadcast industry and they made no announcement which was very disturbing. I whole heartedly agree the board is absolutely useless as they should be getting rid of management starting at the top but they seem to okay seeing this company run into the ground!

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