WDT - Wellington Drive Technologies

[HITMAN]

Surely they wouldn’t upgrade 2021 earnings guidance a day or so before announcing the 2020 result ...maybe not as good as meant to be

Seems a bit weird

I guess we sit back and see how bad the result was, your right... timing is weird.

[HITMAN]

Surely they wouldn’t upgrade 2021 earnings guidance a day or so before announcing the 2020 result ...maybe not as good as meant to be

Seems a bit weird

I guess we sit back and see how bad the result was, your right... timing is weird.

[haewai]

I thought the rule of thumb was 'updates in three'
Looking back through the market releases:
- today's FY 2021 forecast upgrade
- 28 Jan Q4 results better
- 28 Oct Q3 results worse

So this means ...
Nothing more than a test for the rule of three thumbs.

The FY 2020 revenue results are for all to see in the 28 Jan announcement. They're not good but trending up through the Qs. This preannouncement won't stop the running for the hills.

[jonu]

Surely they wouldn’t upgrade 2021 earnings guidance a day or so before announcing the 2020 result ...maybe not as good as meant to be

Seems a bit weird

Or, it's a heads up that the Result will be in the upper end of expectations. In that scenario not the least bit weird.

[kiora]

I liked this bit
"US medical cooler customer provided steady demand and the European
supermarket motors business continued relatively normally"
It would have been better if it was increased demand
And this bit
"Company launches four new
products in the IoT and motor space. Wellington will also commence the first volume shipments for Imbera
Cooling IoT solutions partnership and will continue progressing initiatives to expand the Connect IoT range
beyond its core ‘bottle cooler’ market segment. It is anticipated that these developments will provide the
opportunity to deliver additional revenue streams in 2021 "
https://stocknessmonster.com/announcements/wdt.nzx-368291/

[artemis]

New IoT product launch announced, and three more launches planned for 2021.

[kiora]

"The Wellington Connect IoT platform has seen phenomenal success, with over one million units shipped to 50 customer organisations across 24 countries."
http://www.sharechat.co.nz/article/36fafafe/wellington-drive-technologies-limited-nzx-wdt-new-product-launch.html?utm_source=ST&utm_medium=email&utm_campaign=ShareTrader+AM+Update+for+Monday+29+M arch+2021

[simla]

It is very counter-intuitive, but I wonder if WDT should consider paying a dividend?

A dividend of 0.1 cents on 431m shares would cost $431k by my maths, and .2 cents would be $862k. Cash flow from operating activities were +$340k for 2020, and +$2987 for 2019. Gross revenue was $37m in 2020 and $62m in 2019. All figures from my reading of recently released results.

So why do it? Well, a PE of 70 is hardly pushing the boat out considering the growth WDT keeps managing. So a dividend of .1 cents would justify a share price of 7 cents, and 0.2 would justify 14 cents. The company recently did a rights issue at 5 cents (which I was happy to take up).

Without a dividend, the share price is just whatever the market last made up and it bounces around a lot. But put out a dividend and there is some sort of underpinning of the price finally? That might place the company in a stronger position to raise cash if it wanted to?

Just a thought. Counter-intuitive, as I say.

ps. Yes, I do realise that PE is not theoretically based on dividend. But is that really how the real world works when there has been no dividend to date?

[Flugenbear]

Interesting thought Simla, though I suspect paying a dividend now would be seen as a little irresponsible and misleading.
As a shareholder I wouldn't be too impressed, as much as I would like a return from this one!

[jonu]

Great update from WDT

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WDT/371338/345001.pdf

[sb9]

Great update from WDT

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WDT/371338/345001.pdf

Yeah, looks pretty solid. Hopefully 2021 is the year reckoning for them and shareholders.

[Getty]

Return to profit sounds good, till you read deeper.

Only half a million NPAT for the quarter, on a $36M CAP @8.5c

GP down 7%
EBITDA -31.3%

Forecast only breakeven, and tempered with warning about shipping & supply chain issues.

Be very cautious.

[sunnysleeper11]

Return to profit sounds good, till you read deeper.

Only half a million NPAT for the quarter, on a $36M CAP @8.5c

GP down 7%
EBITDA -31.3%

Forecast only breakeven, and tempered with warning about shipping & supply chain issues.

Be very cautious.

Do you think they'll need a Cap raise soon?

[jonu]

Return to profit sounds good, till you read deeper.

Only half a million NPAT for the quarter, on a $36M CAP @8.5c

GP down 7%
EBITDA -31.3%

Forecast only breakeven, and tempered with warning about shipping & supply chain issues.

Be very cautious.

All when compared with a quarter not significantly impacted by Covid.

This is what gives me reason for enthusiasm

“Wellington has had a great quarter with strong trading, a big increase in our forward order position and a
successful reception for the first two of the four new products we are launching this year. We are now
expecting record US$ revenue for the year. Even more significantly, our core growth products – our
Connect IOT solution and our ECR 2 motor series - are expected to grow in US$ revenue terms by 15-20%
over our previous record performance in 2019 –prior to the COVID impacted downturn in 2020. Wellington
is not just recovering – we believe we are back onto a solid medium-term growth path, driven by market
share gains from our core growth products.”
“2021 is expected to be a pivotal year for Wellington’s medium-term strategy to lift growth and improve
profitability. The successful launch of our 4 new products will allow us to take our Connect IoT solution into
new, higher-value market segments as well as positioning us for growth with existing IoT customers via
retrofit and upgrade sales cycles. While our forecast includes some small contributions from these
products in 2021 – they will mainly be part of our 2022 and beyond performance.”
“

[Getty]

At a superficial glance, probably not, if they just keep doing what they are. in response to #1263

[Getty]

All when compared with a quarter not significantly impacted by Covid.

This is what gives me reason for enthusiasm

“Wellington has had a great quarter with strong trading, a big increase in our forward order position and a
successful reception for the first two of the four new products we are launching this year. We are now
expecting record US$ revenue for the year. Even more significantly, our core growth products – our
Connect IOT solution and our ECR 2 motor series - are expected to grow in US$ revenue terms by 15-20%
over our previous record performance in 2019 –prior to the COVID impacted downturn in 2020. Wellington
is not just recovering – we believe we are back onto a solid medium-term growth path, driven by market
share gains from our core growth products.”
“2021 is expected to be a pivotal year for Wellington’s medium-term strategy to lift growth and improve
profitability. The successful launch of our 4 new products will allow us to take our Connect IoT solution into
new, higher-value market segments as well as positioning us for growth with existing IoT customers via
retrofit and upgrade sales cycles. While our forecast includes some small contributions from these
products in 2021 – they will mainly be part of our 2022 and beyond performance.”
“

Fair enough, I read all that too, and want this company to succeed, but will wait to I see some more runs on the board before I invest.

[emearg]

They survived Covid. They have built some new products to drive revenue growth and margins. The future looks bright. Pretty good result all things considered.

For anyone who likes a bit of white on white on white action... https://www.youtube.com/watch?v=MInn4iH4xVc

[Rowdy Flat]

Yeah, looks pretty solid. Hopefully 2021 is the year reckoning for them and shareholders.

Bro... it's been some longarse hikoi of hope, surely deserving some rewards!

[winner69]

Maybe their luck has changed

After decades of ‘bad luck’ they deserve some good luck

[sb9]

Maybe their luck has changed

After decades of ‘bad luck’ they deserve some good luck

Should see this move into 10c range pretty soon and hopefully never below that ;)

[jonu]

Should see this move into 10c range pretty soon and hopefully never below that ;)

Yes, I see them after an awfully long wait, as being poised for profitable growth. Happily, so does their CEO! One of few underpriced stocks on NZX IMHO.

[winner69]

Should see this move into 10c range pretty soon and hopefully never below that ;)

e good if that was the case

Bit of a worry when they tout 'return to profitability' but in same announcement that they will likely make a loss this year (they say break even at USD0.70 ...hmmm)

The bad luck still continues - latest bit of bad luck being seeing cost and supply chain pressures

Hope global shortage of chips is not going to affect them and be their next bit of bad luck

Hope they appoint a lucky CEO

My morbid fascination with WDT that has lasted 20 year or so continues


No doubt the share price will go to 10 cents soon

[jonu]

Resistance at 9 appears to be wilting, and the chart backs it up nicely. Next resistance?

[winner69]

Resistance at 9 appears to be wilting, and the chart backs it up nicely. Next resistance?

Next resistance just above 10 - lets say 10

Then its 17

Remember once resitance broken t becomes support -- so break through 9 and we wont see anything less

[jonu]

Next resistance just above 10 - lets say 10

Then its 17

Remember once resitance broken t becomes support -- so break through 9 and we wont see anything less

Never mind 10, I much prefer 17 :lol::lol: Let's go with that!

[winner69]

A big rave about Wellington in the business press

Mentions $100m turnover in 2023

Is being valued as a tech company the catalyst for a decent rise in share price over the next year or so - $100m revenues could mean $1 billion market cap or share price over 2 bucks

Wellington Drive’s journey from manufacturing to tech

https://businessdesk.co.nz/article/opinion/wellington-drives-journey-from-manufacturing-to-tech

[silu]

A big rave about Wellington in the business press

Mentions $100m turnover in 2023

Is being valued as a tech company the catalyst for a decent rise in share price over the next year or so - $100m revenues could mean $1 billion market cap or share price over 2 bucks

Wellington Drive’s journey from manufacturing to tech

https://businessdesk.co.nz/article/opinion/wellington-drives-journey-from-manufacturing-to-tech

When I see it I believe it. WDT doesn't have exactly a great track record in creating value for shareholders. I was one back in 1999 and can't remember for how long. Also every company I briefly glance at in the IoT sector seems to come with those lofty ambitions that just don't seem to get any traction. Why would I need a fridge with Internet connectivity? Smart light bulbs? Why? Maybe I'm an old man yelling at a cloud but then looking at companies like BUD.ASX makes me very wary in investing in such companies.

[jonu]

When I see it I believe it. WDT doesn't have exactly a great track record in creating value for shareholders. I was one back in 1999 and can't remember for how long. Also every company I briefly glance at in the IoT sector seems to come with those lofty ambitions that just don't seem to get any traction. Why would I need a fridge with Internet connectivity? Smart light bulbs? Why? Maybe I'm an old man yelling at a cloud but then looking at companies like BUD.ASX makes me very wary in investing in such companies.

Maybe you don't need a wizzbang fridge system, but supermarket chains, bulk chillers, commercial refrigeration in general does!

WDT have evolved into something beyond their original scope. The signs are more than promising.

[silu]

Maybe you don't need a wizzbang fridge system, but supermarket chains, bulk chillers, commercial refrigeration in general does!

WDT have evolved into something beyond their original scope. The signs are more than promising.

A quick look at the website would have taught me that look at commercial solution - my bad. I just have this bad taste in my mouth with this company that in its history has nothing to show for in creating shareholder value. I may have to do more research while this global chip shortage is playing out.

[winner69]

When I see it I believe it. WDT doesn't have exactly a great track record in creating value for shareholders. I was one back in 1999 and can't remember for how long. Also every company I briefly glance at in the IoT sector seems to come with those lofty ambitions that just don't seem to get any traction. Why would I need a fridge with Internet connectivity? Smart light bulbs? Why? Maybe I'm an old man yelling at a cloud but then looking at companies like BUD.ASX makes me very wary in investing in such companies.

BUD a good story ha ha

I see they mention the supply of semi-conductors / chips is becoming a real problem

I have that feeling that chips will be Wellington's next bad luck story

Loss already forecast - could be quite a big loss if this impacts them

[silu]

BUD a good story ha ha

I see they mention the supply of semi-conductors / chips is becoming a real problem

I have that feeling that chips will be Wellington's next bad luck story

Loss already forecast - could be quite a big loss if this impacts them

Totally agree. I've mentioned in my reply to jonu that general supply chain issues will affect a lot of companies and smaller less capitalized companies will find the next few months challenging.

[Wai Wai]

Shades of Rakon a year ago

[kiora]

Totally agree. I've mentioned in my reply to jonu that general supply chain issues will affect a lot of companies and smaller less capitalized companies will find the next few months challenging.

And that is were their major shareholder may significantly help
"Help, my current supply chain is at risk.
Problem: I need to find an alternative source, or diversify my current supply chain.

Solution: Once you hit critical mass, you should never put all your eggs in one basket. Diversifying your supply chain can help protect against increasing wages, raw material unavailability, labor strikes, supply chain disruption, currency fluctuation, increasing taxes, rising fuel costs, and a host of unknowns. When you partner with East West for your manufacturing needs, you will save time and money but most importantly, you get the advantage of our diverse manufacturing base.

With our multiple operations in the United States, Costa Rica, and Asia, we can diversify your supply chain with one supplier, one company, one point of contact. We can guide you through NPI with smaller volume production locally, and then balance out larger production volume in Costa Rica or Asia, helping you achieve scale and reducing your risk."
https://app.companiesoffice.govt.nz/companies/app/ui/pages/companies/311055/shareholdings
https://www.ewmfg.com/about/problems-we-solve/

[kiora]

Totally agree. I've mentioned in my reply to jonu that general supply chain issues will affect a lot of companies and smaller less capitalized companies will find the next few months challenging.

And that is were their major shareholder may significantly help
"Help, my current supply chain is at risk.
Problem: I need to find an alternative source, or diversify my current supply chain.

Solution: Once you hit critical mass, you should never put all your eggs in one basket. Diversifying your supply chain can help protect against increasing wages, raw material unavailability, labor strikes, supply chain disruption, currency fluctuation, increasing taxes, rising fuel costs, and a host of unknowns. When you partner with East West for your manufacturing needs, you will save time and money but most importantly, you get the advantage of our diverse manufacturing base.

With our multiple operations in the United States, Costa Rica, and Asia, we can diversify your supply chain with one supplier, one company, one point of contact. We can guide you through NPI with smaller volume production locally, and then balance out larger production volume in Costa Rica or Asia, helping you achieve scale and reducing your risk."
https://app.companiesoffice.govt.nz/companies/app/ui/pages/companies/311055/shareholdings
https://www.ewmfg.com/about/problems-we-solve/

[winner69]

And that is were their major shareholder may significantly help
"Help, my current supply chain is at risk.
Problem: I need to find an alternative source, or diversify my current supply chain.

Solution: Once you hit critical mass, you should never put all your eggs in one basket. Diversifying your supply chain can help protect against increasing wages, raw material unavailability, labor strikes, supply chain disruption, currency fluctuation, increasing taxes, rising fuel costs, and a host of unknowns. When you partner with East West for your manufacturing needs, you will save time and money but most importantly, you get the advantage of our diverse manufacturing base.

With our multiple operations in the United States, Costa Rica, and Asia, we can diversify your supply chain with one supplier, one company, one point of contact. We can guide you through NPI with smaller volume production locally, and then balance out larger production volume in Costa Rica or Asia, helping you achieve scale and reducing your risk."
https://app.companiesoffice.govt.nz/companies/app/ui/pages/companies/311055/shareholdings
https://www.ewmfg.com/about/problems-we-solve/

East Westvseem to own a few chip companies as well

So no worries here

Wellington having luck on their sides now ..lucky having a shareholder like East West

[jonu]

Seems WDT has settled above 9 but is reluctant to push on through to 10 despite bugger all depth to hold it back.

Winner tells us 10ish is next resistance. Listen up WDT!

[winner69]

Appointed new CEO, Greg Balla from Orion Health

I saw a picture of Jacinda Ardern as a related page on LinkedIn ...thats good

[kiora]

New CEO quite some incentive to stay and keep SP up
https://www.nzx.com/announcements/371822

[winner69]

New CEO quite some incentive to stay and keep SP up
https://www.nzx.com/announcements/371822

Lasts the distance and share price goes to 30 cents worth 2.65 million

At 50 cents worth 4.4 million

Hope you gets even more than that - we'll all be happy then

[jonu]

WDT still struggling to break the shackles of 9.

One would hope some of those exiting ATM today might consider something with plenty of upside.

[Getty]

Like NTL Jonu?

[jonu]

Like NTL Jonu?

Find a bridge, troll.

[jonu]

Seems to have been a bit of a shakeout yesterday. Depth would suggest a push to above 9 again. Frustrating. I bought a whack at 8.4 so not uncomfortable yet!

[jonu]

Well well Wellington....the market continues to be unenthused. I still maintain it's good value at anything under 10, especially when compared to many stocks across the NZX.

[Flugenbear]

It's one of those Companies you need a lot if patience with....but I agree, I think it's a buy at the moment.

[jonu]

It's one of those Companies you need a lot if patience with....but I agree, I think it's a buy at the moment.

Glad I'm not the only one....although I already did my buying.

[sb9]

Heard a whisper through a contact close to company, that apparently things are pumping at Wellington. Pls DYOR, eagerly waiting for their update at ASM on Wed 26 May.

[Flugenbear]

It wouldn't surprise me one bit. But I think a lot of it is covid catch up. The last update was pretty good, but not as spectacular as I had hoped. Perhaps it will continue as the year progresses.....

[winner69]

Sales going gangbusters …going to be 10% more than expected

All looking good for next few years …and beyond

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WDT/374588/349041.pdf

[whatsup]

Sales going gangbusters …going to be 10% more than expected

All looking good for next few years …and beyond

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WDT/374588/349041.pdf

W69, Yeh once they hit their straps should be an interesting company as they have circa $100 million of tax losses, so no tax imo for years to come.

[whatsup]

Sales going gangbusters …going to be 10% more than expected

All looking good for next few years …and beyond

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WDT/374588/349041.pdf

W69, Yeh once they hit their straps should be an interesting company as they have circa $100 million of tax losses, so no tax imo for years to come.

[whatsup]

Market catching on atm, up 15% already.

[kiora]

This may be useful in the future
"A new ‘business continuity test’ allowing a company to carry forward tax losses through a change of ownership has been introduced."
https://www.interest.co.nz/business/111164/parties-seeking-sell-or-issue-shares-should-be-emboldened-fact-doing-so-will-now-be

[kiora]

BB tightened, above EMA 50
Having a little play

[sunnysleeper11]

BB tightened, above EMA 50
Having a little play
yeah - definitely a bit more interest lately

[whatsup]

Nice little bounce today up 7% !!

[whatsup]

Nice little bounce today up 7% !!

Now 16% somethings brewing !

[whatsup]

20 % !! now must be something brewing !

[winner69]

Share price back to pre-covid levels before we know it

eckon 20 cents on the cards soon .... and hope not a takeover

[Arthur]

If the rules re ownership continuity change the tax losses are very attractive.

[winner69]

If the rules re ownership continuity change the tax losses are very attractive.

I read somewhere that only applies to the last 5 years losses .... or something like that

[kiora]

" It enables such a company to carry forward​ tax losses generated from the 2013/14 income year onwards, provided that certain requirements are satisfied."
https://www.interest.co.nz/business/111164/parties-seeking-sell-or-issue-shares-should-be-emboldened-fact-doing-so-will-now-be
$116 m tax losses still in their balance sheet in Annual Report 2020
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WDT/368291/341358.pdf

[sb9]

Hmm...things have quickly fallen back to ground, not sure what or who caused the stir last week pushing it past 12c mark, update today doesn't look very rosy.

[emearg]

Hmm...things have quickly fallen back to ground, not sure what or who caused the stir last week pushing it past 12c mark, update today doesn't look very rosy.

And yet things have risen back up over 12 cents. No particular reason for the turbulence over the past few weeks from what I can see.

Major negatives as I see them:
Production issues in Vietnam.
Sourcing components continues to be a problem.

Positives:
Demand for their products has returned after a horrid 2020.
Good margins

I quadrupled my holding in early June. I have no regrets. As long as they can stay afloat over the next year or two I think they have an increasingly bright future.

[kiora]

Funny how Wairahi Investments Ltd keeps popping up
https://stocknessmonster.com/announcements/wdt.nzx-376712/
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RAK/362188/333790.pdf
https://www.businesscheck.co.nz/ltd/9429041392775/
https://opencorporates.com/companies/nz/8021641

[whatsup]

Funny how Wairahi Investments Ltd keeps popping up
https://stocknessmonster.com/announcements/wdt.nzx-376712/
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RAK/362188/333790.pdf
https://www.businesscheck.co.nz/ltd/9429041392775/
https://opencorporates.com/companies/nz/8021641

Re Mike Daniel was a broker in the 1980's I think, could be a big holder in Nthland Port.

[kiora]

Good timing Emeage. That Mike Daniel must know a thing or two as well
Pretty tidy result
Onwards and upwards. Looking rosy with no tax to pay for a while
https://stocknessmonster.com/announcements/wdt.nzx-377939/

[GR8DAY]

....Greg Allen doing a stupendous job at the helm by the looks of things.
Revenue climbing nicely. Vietnam back in production. I will be looking seriously at increasing my holding again based on this latest report.....not to forget they're deeply involved indirectly in the global warming business (refrigeration) and yes no tax to be paid for a very long time. Gotta be a good thing.

[emearg]

....Greg Allen doing a stupendous job at the helm by the looks of things.
Greg Allen finished up at the end of March, still a director though, and yes he has done a great job in righting the ship. Let's hope the new guy who just started can continue the good work.


.....not to forget they're deeply involved indirectly in the global warming business (refrigeration)
Can you elaborate on this? I'm not quite sure what angle you're coming from. Cheers

[whatsup]

As a long term holder, I wonder just how they can/will grow WDT now that it is in profit ( all bit a wee one ) how do they maxamize their circumstances, small profit, positive cash flow ( for now ? ), $6 mil cash holding, large tax losses- $100 mil + , to my mind they need a business that will be a game changer for them, the question is, where will that come from and I dont think that it is inside the company at this stage ?

Come on Mike D put your hat on and get on the board!

[kiora]

WU
You don't think
"Connect™Monitor, launched in March, and Connect™ Network , will be launched in November"
Will be much of a game changer then?
When one off charges in latest result are considered ?
"underlying EBITDA for H1-2021 was $2.5m, a $2.0m increase over the same period last year and the
underling profit was $1.3m, a $2.7m increase".
https://stocknessmonster.com/announcements/wdt.nzx-377939/

They had several head winds in their latest result

[winner69]

As a long term holder, I wonder just how they can/will grow WDT now that it is in profit ( all bit a wee one ) how do they maxamize their circumstances, small profit, positive cash flow ( for now ? ), $6 mil cash holding, large tax losses- $100 mil + , to my mind they need a business that will be a game changer for them, the question is, where will that come from and I dont think that it is inside the company at this stage ?

Come on Mike D put your hat on and get on the board!

WDT have had so many 'game changers' since last century I've lost count ..... but the future may be different..... there big day might come

They put this chart in the Interim Report - not that inspiring is it .....if I was them I would've been to embarrassed to publish such uninspiring stuff - esp if hyping a bright future

[forest]

WDT have had so many 'game changers' since last century I've lost count ..... but the future may be different..... there big day might come

They put this chart in the Interim Report - not that inspiring is it .....if I was them I would've been to embarrassed to publish such uninspiring stuff - esp if hyping a bright future

It seem hard to inspire you Winner, gross profit as per your chart 1H21 new high of $8.9m.
Operating cash flow, remember cash coming in is important up 332%
What is needed to inspire you in WDT case? ;)

[winner69]

It seem hard to inspire you Winner, gross profit as per your chart 1H21 new high of $8.9m.
Operating cash flow, remember cash coming in is important up 332%
What is needed to inspire you in WDT case? ;)

$8.9m this year v $8,6m two years ago not very ‘inspiring’ is it


Comparisons to H120 don’t mean much

[kiora]

Inspired?
Reasonably confidant more likely as they had many head winds to contend with
"Customer demand is buoyant. As reported previously, the Company is managing several operating constraints including a tight IT labour market, supply shortages of some electronic components, increased component costs, constraints on shipping, increased shipping costs and more recently, the closure of the production line in Vietnam due to a COVID-19 closure. It is pleasing to now advise that production in Vietnam has recommenced following a temporary Government imposed COVID-19 closure. It will take a few weeks for production to be back to normal levels"
https://stocknessmonster.com/announcements/wdt.nzx-377939/

And they have a decent cornerstone shareholder

[forest]

$8.9m this year v $8,6m two years ago not very ‘inspiring’ is it


Comparisons to H120 don’t mean much

Hmm, I see enough progress in WDT to give me some inspiration, remember that WDT had many hurdles as kiora points out.
To than report $3.1m operational net cash flow seems positive to me, it is certainly an improvement.

[winner69]

Was inspired back in 2015:

Outlook

After many words and phrases like strong, encouraged, improved operating performance, momentum on new product trials, new product adoption blah blah they ended with “The board and management team are increasingly confident in the new product adoption programme, channel expansion strategy and initial customer discussions on new product volumes and envisages continued revenue and profit growth”

[winner69]

Hmm, I see enough progress in WDT to give me some inspiration, remember that WDT had many hurdles as kiora points out.
To than report $3.1m operational net cash flow seems positive to me, it is certainly an improvement.


…..did they pay all the bills?

[forest]

…..did they pay all the bills?

Ok, I recognise that the liabilities for bill paying has gone up, most of the increase is however covered by trade and other receivables going up as well.
Hmmn, maybe I should be less inspired. I will think about that.:)

[Getty]

Was inspired back in 2015:

Outlook

After many words and phrases like strong, encouraged, improved operating performance, momentum on new product trials, new product adoption blah blah they ended with “The board and management team are increasingly confident in the new product adoption programme, channel expansion strategy and initial customer discussions on new product volumes and envisages continued revenue and profit growth”

Lovely words.

They must use the same spin doctor as NTL to drive the company along.

[winner69]

Three million ECR2 motors sold

Pretty amazing feat selling 3 million motors and made no money in doing so

But it’s good we have better planet

[winner69]

This is inspiring:

… since Wellington began, the Company’s energy-efficient technology has saved over 18.6TWh of energy, equivalent to powering the global energy requirements of the world for about 6.5 hours*.

[Getty]

[QUOTE=winner69;905714]Three million ECR2 motors sold

Pretty amazing feat selling 3 million motors and made no money in doing so]

Very aptly put.

[Wai Wai]

Remember when Rakon was trading at 1x revenue not so very long ago...just saying

[whatsup]

12.7 1 year high and rising atm.

[GR8DAY]

.....did anyone mention the 100m in tax credits today? Lol
Undervalued/uptrend and back to 26c maybe..... hopefully.?

[whatsup]

12.7 1 year high and rising atm.

Close at .137 9.6% increase, is the rerating under way ?

[sunnysleeper11]

Close at .137 9.6% increase, is the rerating under way ?
hi whatsup
what market cap is needed for a rerate?
or is a rerate when brokers state their valuations?

[Wai Wai]

"When brokers state their valuations?!!!"
Joke
They still haven't restated or even stated Rakon's valuation
Rakon stuck out like the boy dog's rear parcel at 25cents a couple of years ago
Just like WDT today

[whatsup]

.14 18month high, are we there yet ?

[whatsup]

.14 18month high, are we there yet ?

Someone wants in @ .144 now up 10% + today, whatsup ?

[Yeet_Shares]

Someone wants in @ .144 now up 10% + today, whatsup ?

Only news I've seen is a simplywall street update....

[whatsup]

.16 now up another 8% today, .20 here we come !

[sb9]

.16 now up another 8% today, .20 here we come !

May be a note coming soon from NZ Reg Co "Please explain...."

[Yeet_Shares]

Could the combination of company performing well + trading update coming?

[ekman]

Take over/merger in the winds?

[Yeet_Shares]

Go WDT, your time has finally come😃

[whatsup]

Go WDT, your time has finally come��

Up another 5% so far today , hitting on the .19c door !!

[kiora]

When is another market update due?

[sunnysleeper11]

When is another market update due?
Should be something before end of this month - judging by previous years.
Steady buying recently, without any worry of pushing the price up.
Anyone with better insight as to who? Instos trying to get in before market update this month?

[winner69]

Q3 numbers pretty amazing .... big % increases

And NPAT $3.44m better than a year ago

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/WDT/381690/357872.pdf

[kiora]

Those margins are pretty extraordinary
Does W 69 believe the story now?
Remember $100 m in tax losses to get through!

[Rawz]

Is this off a weak base?
What's it like compared to 2019?

Never heard of this company

[kiora]

Founded 1986.Likely before a lot on here where born :)
https://www.wdtl.com/

[Ricky-bobby]

Good on them. I sold out last year, couldn’t handle the wait… hopefully they have their grove on and it’s onwards and upwards from here

[Rawz]

Founded 1986.Likely before a lot on here where born :)
https://www.wdtl.com/

Looking at the morningstar numbers via ASB.

From 12/2012 to 12/2020:
- Revenue has gone from $36m to $37m
- npat from -$6m to -$2m

Standout performer was the number of shares on issue. 71m to 432m. Seems shareholders have been keeping this one afloat for not a lot of results.

[emearg]

Looking at the morningstar numbers via ASB.

From 12/2012 to 12/2020:
- Revenue has gone from $36m to $37m
- npat from -$6m to -$2m

If you want a more realistic picture of progress, if any, choose 2019. 2020 makes most companies look terrible.

[whatsup]

Up 10% + so far today, been a good run since I posted @ .14/5 , we could be looking at a way out of the 20 year doldrums now !

[winner69]

Is this off a weak base?
What's it like compared to 2019?

Never heard of this company

Shame on you never heard of this company

Nonetheless I reckon you’ll know a lot about them soon as you become a long term holder ……could bec billion dollar company one day …maybe that’s bullish but a half a billion company at least

[kiora]

Jezzz W69
Don't tell us you are on board now?

[winner69]

Jezzz W69
Don't tell us you are on board now?

Again you mean

The unluckiest company on the NZX is finally having a bit of good fortune.

But share price could be 10 cents again in a years time.

Keep an eye on that squiggly line on the chart …..’fundamentals’ mean stuff all.

[kiora]

This time we hope its different :)

[sunnysleeper11]

Quite an unsubtle accumulation going on by someone...

[sb9]

Pump and dump by the looks...

[sunnysleeper11]

Pump and dump by the looks...
not sure
if it was pump and dump then they're chumps - they accumulation was well above current share price...

[winner69]

WDT rave about IoT

Here’s an interesting bit on the future of IoT

Mentions value creation of trillions by 2030 … trillions they say

Nice that the unluckiest company on the NZX over a couple of decades may have struck it lucky



https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/iot-value-set-to-accelerate-through-2030-where-and-how-to-capture-it?cid=app

[kiora]

Good tail winds mentioned. Thanks for posting W 69.
Just in case others have missed it.
https://www.wdtl.com/

[artemis]

Couple of years back the Economist tech edition - ''Chips with everything - how the IoT will change the world''.

I think available free online but need to register.

[winner69]

Is this Web3 going to make the IoT redundant ……and WDT will again be unlucky.

[kiora]

On wards & up wards
Are you on board yet W 69?
"In 2019, Wellington presented its Vision 2023 objective of NZ$100m of revenue by FY2023. Assuming that the supply chain issues are resolved during FY2022 and the strong customer demand for our current product
range continues, the team still views this target as achievable."

https://stocknessmonster.com/announcements/wdt.nzx-384728/

[Lizard]

Found it odd how they swapped between USD and NZD for their revenue and EBITDA targets in that update. Had to read more than once. Given the low margins, changes in margin would still be a bigger impact than revenue. I hold some shares, but not my breath.

[winner69]

Found it odd how they swapped between USD and NZD for their revenue and EBITDA targets in that update. Had to read more than once. Given the low margins, changes in margin would still be a bigger impact than revenue. I hold some shares, but not my breath.

Good to hear from you again Lizard .. long time no hear.

Yes switching currencies is a bit confusing ….probably they just want you to read the positive words.

Wasn’t even an upgrade …must have been worried about the share price stalling of late so put out an update.

[winner69]

On wards & up wards
Are you on board yet W 69?
"In 2019, Wellington presented its Vision 2023 objective of NZ$100m of revenue by FY2023. Assuming that the supply chain issues are resolved during FY2022 and the strong customer demand for our current product
range continues, the team still views this target as achievable."

https://stocknessmonster.com/announcements/wdt.nzx-384728/

Lots of if and buts eh kiora …has Welington become lucky.

Love how they say a record sales year …..but it’s not much higher than the $61.7m they achieved 2 years ago……and looks like break even will be a good result.

[Lizard]

Good to hear from you again Lizard .. long time no hear.


Thanks Winner - been busy with a few things for a while, but in a quieter patch for now. Urge to post doesn't come along as often as it used to :)

[kiora]

Welcome back Hope you managed to get that house Lizard
Long term hold for them?
https://stocknessmonster.com/announcements/wdt.nzx-385339/
" Transfer of 55,149,807
ordinary shares via off-market trade settling on 22 December 2021.
The off-market transfer of shares was completed as part of an internal reorganisation led by
the shareholders of East West Manufacturing LLC that resulted in the creation of East West
Legacy LLC, a sister company to East West Manufacturing LLC. No cash or non-cash
consideration was provided for the transfer of the shares as part of this reorganisation. "

[whatsup]

Creeping up again atm.19+ !

[winner69]

Creeping up again atm.19+ !

The Oliver Effect and that exposure in Broker’s Hot Tips

[whatsup]

The Oliver Effect and that exposure in Broker’s Hot Tips

I didnt know this .

[emearg]

Every dog has its day.

[percy]

Every dog has its day.

Even if it has taken 36 years...lol.
Think Graeme Hart listed Rank the same year.

[winner69]

Even if it has taken 36 years...lol.
Think Graeme Hart listed Rank the same year.

Very perceptive Percy …love it

[percy]

Very perceptive Percy …love it

Has cost a fortune in pet food keeping this dog feed.
Dare not mention the vet bills.lol.

In dog years this hound is 192 years old.
Think long term WDT shareholders will feel that age too.

[whatsup]

Creeping up again atm.19+ !

and again today .

[winner69]

and again today .

That Oliver guy is a market mover eh

Brokers Hot Tips the way to go and Shareholders Association endorsement…what can go wrong

[whatsup]

That Oliver guy is a market mover eh

Brokers Hot Tips the way to go and Shareholders Association endorsement…what can go wrong

w69 and of course the 2022 comp does not start until next year, yesterday and todays moves dont count in the 22 comp !

[Oliver Mander]

Never an endorsement winner69, and could be as wrong as the next person.

[Dlownz]

Certainly counts towards this year's though 🎉👌

[winner69]

w69 and of course the 2022 comp does not start until next year, yesterday and todays moves dont count in the 22 comp !

Yea know that..... but he's got a few mums and dads buying because of the exposure

[whatsup]

Yea know that..... but he's got a few mums and dads buying because of the exposure

Been in since early 2011 so lets hope that its go this time !!

[emearg]

20.5 cents? Unthinkable a few months ago. A long way to go before I recoup losses from the Ross Green days, but maybe this company will actually do well. I certainly hope so for a whole number of reasons...not all of them selfish.

[Lola]

Yea know that..... but he's got a few mums and dads buying because of the exposure

Turnover last few days would suggest not just mums and dads are chasing this stock now.
Actually recent announcements give the clues why that could be.

[Waltzing]

who covers this stock? You guys.....gosh and we were whatching this stock 1 year ago with discussion with a local day trader in auckland... We all laughed at the graph and the numbers. An the end the day the trader knew his stuff...just shows that anything can turn into a potential winner and you cant right anything off over the long term.

Going to have to eat humble pie when we next meet the trader...

[NMHB]

Anyone got any updates on company performance/ guidance that's not disclosed via normal channels ?

[whatsup]

Even if it has taken 36 years...lol.
Think Graeme Hart listed Rank the same year.

P, yeh, about that time I bought 1000 RANK shares @ $21.83 ( most expensive share that Id bought up to that time ) Graham then gave a 1/10 bonus followed by a 10/1 split and a 1/7 issue @ $3.00, changed the name to Whitcoulls ,he then made a successful take over ( privatisation ) for them which resulted in them delisting.
I always wondered what would happened to them if he hadnt considering that he is now supposed to be N Z richest man !!

[whatsup]

Every dog has its day.

e, IMHO Ray Thompson (deceased now ) was the guiding light for years circa 1986 , it has been through so many rebirths that Ive lost count of , this time I hope its for real eg Rakon !!

[winner69]

Does a Loss before Tax that becomes a Profit after Tax count as really making a profit.

[Wai Wai]

Check the Annual Report
https://www.wdtl.com/annual-reports/annual-report-2021/

[kiora]

NOT WDT but IOT being useful for tech solutions
IoT deal: Spark buys minority stake in environmental monitoring firm
https://www.nzherald.co.nz/business/iot-deal-spark-buys-minority-stake-in-environmental-monitoring-firm/IFX4NNSD3JZD2NMGXSY53Q3DLY/
Adroit Partners With Spark To Provide Next-Generation IoT Solutions
https://www.scoop.co.nz/stories/BU2111/S00482/adroit-partners-with-spark-to-provide-next-generation-iot-solutions.htm
That IOT sure can be useful aye Murray
https://adroit.nz/adroit-deploys-mussel-farming-data-buoy/

[winner69]

Wellington's bad luck continues

https://stocknessmonster.com/announcements/wdt.nzx-390820/

Must be one of the unluckiest companies in NZ ...but a survivor

I suppose FY EBITDA guidance of $3.4m is a NPAT loss

[Rawz]

I stopped reading when GP margin was 25% yikes

[Wai Wai]

Now we know why the new CEO hasn't bought any stock in the market, unlike the previous CEO and many of the exec. team

[haewai]

At $0.15 as it is now, the market cap is the same as the annual revenue accoridng to Reuters. Interesting coincidence. Can't be bothered working out if that's good or bad. Certaintly different to PEB.

[Wai Wai]

See David Darling (former PEB CEO) recently purchased additional PEB in the market
Just saying

[winner69]

See David Darling (former PEB CEO) recently purchased additional PEB in the market
Just saying

He didn't buy anyway ....they were a 'Non-cash consideration, being in recognition of the Subscriber's performance as an employee of the Company in lieu of a bonus and in addition to the Subscriber's previous salary (being a short term incentive payment from the previous year and a retirement payment)'

[haewai]

Now we know why the new CEO hasn't bought any stock in the market, unlike the previous CEO and many of the exec. team

He's already got almost 13 million options at a considerable discount to the current market price. Pretty significant holding and performance (and sticking around) incentive.

[winner69]

What’s up with wdt share price

Down 8% to 12 cents today

[kiora]

B/c not many are interested in small caps at the moment W69 ?
Particularly ones that are just getting traction
"Microsoft has held up comparatively well, down 22% year-to-date while the likes of Amazon (AMZN) is down 38% over the same period."

"Last month, Microsoft announced a new partnership with the Kraft Heinz Company (KHC) that will see it leverage Azure's IoT and AI capabilities to build a first-of-its-kind Supply Chain Control Tower that "will provide real-time visibility into plant operations and automation of its supply chain distribution across Kraft Heinz's 85 product categories.""
https://seekingalpha.com/article/4511135-microsoft-satya-nadella-5-billion-bet-iot-pay-off?mailingid=27715924&messageid=must_reads&serial=27715924.721323&source=email_must_reads&utm_campaign=Must+Read+May+14%2C+2022&utm_content=seeking_alpha&utm_medium=email&utm_source=seeking_alpha&utm_term=must_reads

[kiora]

Only $25m in tax losses can be recognized.
BUT this is a ripper result & outlook.
If investors don't recognize this near term then ugh, TO on the cards in next few years ,hopefully when all tax losses chewed up
https://stocknessmonster.com/announcements/wdt.nzx-392695/
To compare to PEB is a sick joke :)

[winner69]

At the ASM Keith Oliver, who was standing for re-election, was asked why he doesn’t own shares.

His response was he believes at least one Director should represent the stakeholders other than shareholders, so it is appropriate that that person doesn’t hold shares.

I agree totally …..Keith has no vested interest (ie truly independent) and will do what’s best for everybody

[percy]

At the ASM Keith Oliver, who was standing for re-election, was asked why he doesn’t own shares.

His response was he believes at least one Director should represent the stakeholders other than shareholders, so it is appropriate that that person doesn’t hold shares.

I agree totally …..Keith has no vested interest (ie truly independent) and will do what’s best for everybody

Yeah right..lol.
WDT will remain on my avoid list.
I take it John Scott hold shares in WDT.
Resolution 1 - That John Scott be re-elected as a director of the Company
Number of votes cast
For 214,427,380
Against 25,795
Abstain 6,488,049
Resolution 2 - That Keith Oliver be re-elected as a director of the Company
Number of votes cast
For 188,084,858
Against 25,818,317
Abstain 7,038,049

[kiora]

"the appointment of Rami Elbeltagi as Vice President of Engineering. Rami joins Wellington from Fisher and Paykel Appliances where he most recently held the role of Group Chief Engineer. Rami will start with Wellington in October.
Rami’s career includes starting his own digital business, and roles of increased responsibility at Compac Sorting Equipment and Fisher & Paykel Appliances. Rami has a master’s degrees in business administration (MBA) and in mechatronics (ME) and is PMP certified. "

https://stocknessmonster.com/announcements/wdt.nzx-395886/

[kiora]

The little motor that can?
Nearly back up to MA100 on some good volume.
Something in the wind?

[Wai Wai]

ACC buying

[kiora]

ACC buying

ACC? How do we know if it is them? Not announced ?
I'm not sure that is great then.

[emearg]

ACC? How do we know if it is them? Not announced ?
I'm not sure that is great then.

Pretty damn annoying when people make speculation look like a statement of fact. And unhelpful. The report post button is there for a reason so don't be shy.

[Wai Wai]

Iress monthly NZCSD shareholder list shows (from share registries) shows ACC increasing WDT holding from 6m to 1209913 shares during July
For those a little bit new to investing, as the ACC shareholding is less than 5% of the issued capital shares on issue, no disclosure is required of ACC (their holding represents 1.38%)

So the assertion my post was speculative was rather amateurish

Not sure who should be pressing the report post button?

[kiora]

Thanks Wai Wai

[sb9]

Iress monthly NZCSD shareholder list shows (from share registries) shows ACC increasing WDT holding from 6m to 1209913 shares during July
For those a little bit new to investing, as the ACC shareholding is less than 5% of the issued capital shares on issue, no disclosure is required of ACC (their holding represents 1.38%)

So the assertion my post was speculative was rather amateurish

Not sure who should be pressing the report post button?

Is that a paid subscription for data?

[Wai Wai]

Yes great service about $1k per month

[haewai]

shows ACC increasing WDT holding from 6m to 1209913 shares during July


From 6m to 1.2m is not an increase. But thanks for the info.

[Wai Wai]

Typo clearly to those with a bit of intellect
ACC went from 6m to 7.2m an increase of 1.2 m
None so blind as those who do not want to see

[haewai]

Just wanted the correct numbers, not the ad hominem.

[kiora]

Up through 120 DMA, just need a bit more volume to be convincing?

[Sideshow Bob]

Wellington signals FY guidance towards the top end of range - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/397697)

Wellington Drive Technologies, a leading provider of Internet of Things (IoT) solutions and energy-efficient motors to the retail food and beverage industry, is releasing its half-year results for the six months ending 30 June 2022.

• H1 FY22 Revenue: $31.9 million, up 4.4% on H1 FY21
• H1 FY22 EBITDA: -$0.6 million, down from $1.8m in H1 FY21
• H1 FY22 Pre-tax result -$1.9 million, compared to +$0.6 million in H1 FY21
• Full-year guidance reconfirmed at EBITDA $3.5 – $4.5 million

[haewai]

Also proposing name change to something unpronouceable. Good luck with the marketing.

[winner69]

so Wellington Drive expects three very large revenue months in the last quarter and, if successful, will be towards the top end of its guidance.

Bold statement ..... hope they already know this will happen or else they lose credibility for ever

[winner69]

new name AoFrio

AO | MĀORI FOR WORLD and FRIO | SPANISH FOR COLD

Like it

Like Plexure hopefully all reference to the past will be lost and they can start afresh

[whatsup]

new name AoFrio

AO | MĀORI FOR WORLD and FRIO | SPANISH FOR COLD

Like it

Like Plexure hopefully all reference to the past will be lost and they can start afresh

Long ago circa 1986 they morphed into a listed vehicle, we all hope that this is a new dawn !

[silu]

Long ago circa 1986 they morphed into a listed vehicle, we all hope that this is a new dawn !

I've been briefly a shareholder in the 90s, early 2000s and 2010s. Thrice burned. I do hope they increase shareholder value at some stage for holders though.

[Nevl]

Given the massive move to heat pumps that is going to happen in Europe over the next few years with markets like Germany looking to put a heat pump into every house to get away from Natgas does WDT have much exposure to this market?

[haewai]

Given the massive move to heat pumps that is going to happen in Europe over the next few years with markets like Germany looking to put a heat pump into every house to get away from Natgas does WDT have much exposure to this market?

Their "strategy for growth" is on page 20: https://www.wdtl.com/wp-content/uploads/2021/05/AnnualReport2021_Online_Final.pdf

[Nevl]

Their "strategy for growth" is on page 20: https://www.wdtl.com/wp-content/uploads/2021/05/AnnualReport2021_Online_Final.pdf

So nothing on the heat pump market but I think their energy efficient solutions could be very useful right now in Europe. I hope their sales agents are working over time right now with energy costs about $1.5 per kWh in much of Europe.

[emearg]

So nothing on the heat pump market but I think their energy efficient solutions could be very useful right now in Europe. I hope their sales agents are working over time right now with energy costs about $1.5 per kWh in much of Europe.

Email the CEO and ask him if it is on their radar.

[winner69]

Thought WEllington must have gone broke or something as they disappeared from my watchlist

No, they are AOF now

And the share price sinking to a 52 week low

Must be another positive announcement coming up soon

[Snoopy]

No, they are AOF now


AOF ?

AOF Account Opening Form
AOF Art of Fighting (SNK video game)
AOF Articles of Faith (band)
AOF Acorn Object Format
AOF Application Object File
AOF Afrique Occidentale Française (French)
AOF Alexisonfire (band)
AOF Academy Of Finance (New York State Department of Education)
AOF Advanced Opportunity Fellowship (various organizations)
AOF American Osteopathic Foundation
AOF An Old Friend
AOF American Optometric Foundation
AOF Absolute Open Flow (Gas Well Deliverability Testing)
AOF Academy of Fellows (various organizations)
AOF Ancient Order of Foresters
AOF Arbeidernes Opplysningsforbund
AOF Azimuth of Fire (US DoD)
AOF Avon Old Farms (Avon, CT school)
AOF Australian Oilseeds Federation
AOF Angels of Fire (gaming clan)
AOF Area of Focus
AOF Army of Freshmen (band)
AOF Acorn Object Format (data storage)
AOF Association des Optométristes de France
AOF Atheists and Other Freethinkers (Sacramento, CA)
AOF American Outboard Federation
AOF Angry Old Farts (gaming community)
AOF Axis of Fun
AOF Airfield Operations Flight
AOF Arsenal of Freedom
AOF Age of Fire (game)
AOF Akha Outreach Foundation (Thailand)
AOF Accounts On File
AOF America's Opportunity Fund (Seattle, WA)
AOF Africa on Fire
AOF Aggregate Objective Function (algorithm)
AOF Alliance of Freedom (gaming clan)
AOF Anodic Oxide Film
AOF Address on File
AOF Aviation Ordnanceman Fire Control (US Navy rank)
AOF Acolytes of Fayth (gaming group)
AOF Activity, Objects, and Features
AOF Atheists of Florida, Inc.
AOF Association of Forty (Israel)
AOF Air Outlet Filter
AOF Affidavit of Forgery

SNOOPY

[winner69]

All good on the AoFrio front

Very positive

Seems name change is bring this company good fortune …..after so many years of bad luck

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AOF/401392/382225.pdf

[kiora]

Do investors sit up & take notice?
"AoFrio continues to expect three very large revenue months in the last quarter. Revenue is expected to be
around $83m for the year, a 30% increase compared to the 2021 year."
"Gross Margin was 28.7% (27.8% in Q3-2021).
• EBITDA* was a breakeven result ($0.8m profit in Q3-2021). As expected, this is lower than Q3-2021
due to the increase in headcount to support strong recurring IoT revenue growth."

[winner69]

Do investors sit up & take notice?
"AoFrio continues to expect three very large revenue months in the last quarter. Revenue is expected to be
around $83m for the year, a 30% increase compared to the 2021 year."
"Gross Margin was 28.7% (27.8% in Q3-2021).
• EBITDA* was a breakeven result ($0.8m profit in Q3-2021). As expected, this is lower than Q3-2021
due to the increase in headcount to support strong recurring IoT revenue growth."

Do that 83m then second half sales would be 52m - phenomenal

Suppose the market thinks they can't turn much of a profit out the huge increase in revenues

Maybe next year when they are heading to $100m revenues things will be seen differently

[kiora]

Yep
Expecting GP margin to head higher

[Wai Wai]

And still the CEO hasn't put any of his own money in
Why why why???

[winner69]

And still the CEO hasn't put any of his own money in
Why why why???

Does it really matter when if things go OK and he hangs around he will end up owning a decent chunk of the business. Think that is enough of an incentive .... quite a bit on the line

From AR

Greg Balla does not participate in the Company’s STI programme. He has been issued 12,930,000 share options representing 2.99% of the Company’s ordinary shares at the time of issue. Provided he is a full-time employee at that date, 8.62 million options shall vest on 1 October 2024 and may be exercised within 18 months following 1 October 2024 at an exercise price of 9.1 cents per share. Provided he is a full-time employee on 1 October 2025, a further 4.31 million options shall vest on 1 October 2025 and may be exercised within 18 months of that date at an exercise price
of 11.5 cents per share.

[kiora]

A lot to like
https://stocknessmonster.com/announcements/aof.nzx-405517/
"“IoT products grew by 47% to make up 50% of 2022 revenue, compared to 39% in 2021"
"FY23 Outlook
Operating plans and financial budget for 2023 has been approved by the directors. The business is
forecasting revenue growth exceeding 30% in FY23, trending AoFrio towards becoming a NZ$100 million
revenue company. EBITDA is expected to be around $3.5 million. The forecasts assume a US$ / NZ$ rate of
0.6445.
“Our 2023 business plan leverages our current product range (Connect SCS, ECR motors) to new
customers, as well as recently developed products (Network Pro and Connect Monitor) and new products
under development for existing and adjacent markets (bottle coolers, ice cream, food service, beer, medical).
“To achieve this revenue growth, we are investing in new product development and the addition of specialist
skilled people. Operating costs as a result increase by $6 million. The 2023 budget also includes capital
expenditure of $2.5 million. All investments will be funded out of operating cash flows,” says Balla"

Interesting how SP & number of shares ? traded has been elevated in prior week before announcement!
https://stocknessmonster.com/charts/aof.nzx/

[winner69]

Good stuff eh Kiora

Don't make much money do they for all that outstanding effort - suppose retained losses of $113m will increase a bit more

Must piss a few off when full year ebitda guidance that started off at nearly $5m and then reduced to $2.5m-$3.0m and then going to end up at $1.5m.

Wonder where the FY23 guidance of $3.5m will end up?

[kiora]

Good stuff eh Kiora

Don't make much money do they for all that outstanding effort - suppose retained losses of $113m will increase a bit more

Must piss a few off when full year ebitda guidance that started off at nearly $5m and then reduced to $2.5m-$3.0m and then going to end up at $1.5m.

Wonder where the FY23 guidance of $3.5m will end up?

Glass only slightly more than half full then W69 ?

[Rawz]

I dont mind a company running loses during the start up phase but come on this company has been at it since 1986- going to do $100m revenue all for nothing?

whats the point. their customers must be laughing all the way to the bank getting the product or service at cost

[winner69]

Another year passes and another ‘pleasing’ result

On track to $100m revenues

Wonder if they will be npbt positive by then

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AOF/407351/389454.pdf

[winner69]

Wonder how many tune in

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AOF/408174/390507.pdf

[haewai]

Wonder how many tune in


"Slides presented to Institutional Investors in a video call on 8 March 2023"

Didn't seem to have impact on valuation. Though those calculations can take a while for some.

[winner69]

Well the presentation to investors didn’t help the share price

[winner69]

Made a loss in Q123 but things going well as this is F23 guidance -

AoFrio is maintaining its 2023 guidance with forecast revenue growth expected to exceed 30%, trending towards NZ$100 million in revenue. EBITDA is expected to be around $3.5 million. Based on forecast cashflows the Company is sufficiently funded to execute its current business plans and is planning to fund growth internally.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AOF/410707/393516.pdf

No worries

[kiora]

We hope ?

Growth in IOT & margins has to be good for them.

[winner69]

We hope ?

Growth in IOT & margins has to be good for them.

Some say this IoT isn’t anything special these days and is becoming ‘commoditised’ so they might struggle to maintain those margins.

Is there a next big thing for them?

[haewai]

Every quarterly report seems say something about customers overstocking or otherwise delaying orders until the next quarter, thereby excusing lower revenue than expected.
Revenue Q4 22 was $24.3m and just $14.7 for this Q. A very long way to go to achieve even a 'trend towards $100m revenue on 2023'

[kiora]

Got to be in to win
"The global Internet of Things (IoT) market is projected to grow from $662.21 billion in 2023 to $3,352.97 billion by 2030, at a CAGR of 26.1%... Read More at:- https://www.fortunebusinessinsights.com/industry-reports/internet-of-things-iot-market-100307"
https://www.fortunebusinessinsights.com/industry-reports/internet-of-things-iot-market-100307

[kiora]

Some say this IoT isn’t anything special these days and is becoming ‘commoditised’ so they might struggle to maintain those margins.

Is there a next big thing for them?

NBT
"“We have made great progress on our product roadmap and are expecting to launch a new cellular
controller, a SCS controller that has cellular communication embedded in the device. This is vital for our
market entry strategy for North America and Europe. We will also launch a 25 watt motor which will allow us
to take share in the food retail market.”"

[winner69]

Jeez AOF share price down to 7.5 cents

Probably been lower some before in distant past but 7.5 cents is pretty bad

[winner69]

Mkt cap about $30m and sales ‘trending to $100m’

You’d think that would get punters excited and be in boots and all

[haewai]

Consistent with 18 month trend though, which matters to some people. Good to get some volume out of the way late yesterday.

[Wai Wai]

Harbour Asset Management hanging over market

[Flugenbear]

Another capital raise could also be just around the corner....

[Wai Wai]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AOF/414235/397925.pdf

CEO buying shares!!!

[winner69]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/AOF/414235/397925.pdf

CEO buying shares!!!

Always a good sign

And in a closed period as well

[forest]

Always a good sign

And in a closed period as well

From Rules of Staff Trading in Aofrio Securities.

In particular, trades may not be made until one trading day (being 24 hours from one
trading day to the next trading day) after the announcement of the annual results or half-yearly
results.

Hi Winner it seems that the closed period of insider trading for this company is minimal.
Seems like no closed trading period for insiders after financial year is finished as long as no material information is available which has not already be notified to the market.

[winner69]

From Rules of Staff Trading in Aofrio Securities.

In particular, trades may not be made until one trading day (being 24 hours from one
trading day to the next trading day) after the announcement of the annual results or half-yearly
results.

Hi Winner it seems that the closed period of insider trading for this company is minimal.
Seems like no closed trading period for insiders after financial year is finished as long as no material information is available which has not already be notified to the market.

He got permission to buy so no worries

[silu]

Jesus has this company ever made money for any investor? I was briefly a WDT shareholder 20 or so years ago and have followed them ever since but it just seems disappointment after disappointment:

Metric (NZ$m) H1 FY23 H1 FY22 Variance
Revenue 30.1 31.9 (1.8)
IoT Revenue 17.1 16.3 0.8
Motors & Fans Revenue 13.0 15.6 (2.6)
Gross Margin % 30.3% 26.6% 3.7pp
EBITDA (0.7) (0.6) (0.1)
Profit / (Loss) (2.6) (1.9) (0.7)

Financial performance for H1 FY23 was broadly consistent with H1 FY22. It
reflected the global economic uncertainty impacting customers, including the
residual effects from global supply chain issues that have lasted longer than
expected. Meaningful improvement in trading conditions now seems unlikely
until Q4 FY23 and it is therefore appropriate to update our FY23 guidance.

We now expect FY23 revenue to be similar to FY22 and for EBITDA to be around
$2.5 million, which is 50% ahead of FY22, although down from prior guidance
of around $3.5 million. Some risk remains that the improvement in market
conditions may be delayed until FY24 and the Company will update its
projections and guidance as it progresses further through FY23.

[winner69]

Duplicated somehow

[winner69]

Important bit is this -

We now expect FY23 revenue to be similar to FY22 and for EBITDA to be around
$2.5 million, which is 50% ahead of FY22, although down from prior guidance of around $3.5 million.

Another year of losing money coming up. ……one year they will get lucky

[Nevl]

Negative EBITA is bad but debt is low so this is mostly costs related to motor manufacturing. Would be nice to see more but with IOT now about 50% of revenue that's positive for the future.

[winner69]

Negative EBITA is bad but debt is low so this is mostly costs related to motor manufacturing. Would be nice to see more but with IOT now about 50% of revenue that's positive for the future.

Yep higher margins on IoT stuff …..but IoT seems to becoming more commoditised as time goes on and as become the norm rather than something special so margins may shrink over time.

Question remains ….what is going to drive decent/respectable profits in the future

[percy]

Yep higher margins on IoT stuff …..but IoT seems to becoming more commoditised as time goes on and as become the norm rather than something special so margins may shrink over time.

Question remains ….what is going to drive decent/respectable profits in the future

I have been asking myself that very question for 35 years.?

[SailorRob]

I have been asking myself that very question for 35 years.?


You'll get there in the end Percy, specially now you have a short term future rate advisor.

[winner69]

And share price down to 7 cents ….that’s pretty dismal for holders

[percy]

And share price down to 7 cents ….that’s pretty dismal for holders
After over 35 years of under performance they are accustomed to it.

[winner69]

BUY SELL OR HOLD …..

……..or just POINTLESS

Found this the other day -

Investors can choose to BUY SELL HOLD a stock.

Well I met a company that looks cheap so isn’t a sell. The Biz is challenged & has no near term growth prospects so not a buy. It doesn’t pay a divvy so no point holding either.

So I’ve created a new category called POINTLESS

[Flugenbear]

So they've had to extend the bank credit to 8 million for 3 months. They have 3 million in cash. What happens in less than 3 months and the bank doesn't extend again? That's right folks, next capital raise on the way, may be they are even putting the paperwork together.
Might explain why the SP is heading south.

[kiwikeith]

BUY SELL OR HOLD …..

……..or just POINTLESS

Found this the other day -

Investors can choose to BUY SELL HOLD a stock.

Well I met a company that looks cheap so isn’t a sell. The Biz is challenged & has no near term growth prospects so not a buy. It doesn’t pay a divvy so no point holding either.

So I’ve created a new category called POINTLESS

It reminds me of the definition of a long term investment - a short term investment gone wrong.

[haewai]

So they've had to extend the bank credit to 8 million for 3 months. They have 3 million in cash. What happens in less than 3 months and the bank doesn't extend again? That's right folks, next capital raise on the way, may be they are even putting the paperwork together.
Might explain why the SP is heading south.

Yesterday's q3 update had messaging you would be interested in. Such as "AOF expects to finish the year with a solid cash position and minimal use of its bank finance facility" and "AOF remains confident it can internally fund and deliver improved performance in FY24."

With FY23 revenue forecast at $65m and a capital value of $26m, perhaps someday the margins will improve to the dramatic benefit of shareholders. But until then...

[kiora]

For those with spare change?
Always painting a rosy future !
Company Update
AoFrio is excited to announce the launch of two new products – the Network Pro One cellular solution and ECR 2 26W Motor.
https://www.aofrio.com/solutions/cellular-enabled-solutions/?utm_campaign=Euroshop%202023&utm_medium=email&_hsmi=279846850&_hsenc=p2ANqtz-_h77oQNKroOfv6LFYAeXO-8OlGTSOTkiocnM4TnXXkjWun7lTBGnrK1FMG8tswVxFFJ4StVr DAt_Muok9hUrMppMNYWw&utm_content=279563870&utm_source=hs_email
Wellington ECR motors
https://www.aofrio.com/solutions/ecr-motors/?utm_campaign=Euroshop%202023&utm_medium=email&_hsmi=279846850&_hsenc=p2ANqtz--sshYRS3tyB5wBwBmkRT3ohChNO88nJJRu9nCV8MYrK4umSv1c9 snvYmlPn0kWdVHRTyYemh5-LcOFEgk1r5-UIwGNTQ&utm_content=279563870&utm_source=hs_email
Company Update
AoFrio is excited to announce the launch of two new products – the Network Pro One cellular solution and ECR 2 26W Motor.

NetWork1.5
Network Pro One: Unlock the Power of Connectivity

With Network Pro One, we're bringing your assets into the digital age. It offers single asset connectivity, granting you control of and insights into your cooling systems. Whether you need remote access, geo-location tracking, or daily data collection, Network Pro One has got you covered.

Wellington ECR 2 26W Motor: More Power, More Efficiency

The Wellington ECR 2 26W motor is our most powerful motor yet and is designed for evaporator and condenser applications in bottler coolers and supermarket displays. The motor helps achieve improved efficiency, reducing costs and has a universal voltage providing flexibility in installation with lower environmental impact.

ECR226W
AIBlog
Industry Focus

AI already knows more about your commercial refrigerator than you

The future of commercial refrigeration certainly includes AI. We are seeing AI reshaping the way businesses are managing and monitoring their commercial refrigeration fleets, making it possible to respond faster to changing conditions while remaining cost-effective. Predictive technology and AI are helping customers to streamline operations and achieve more proactive fleet management.

Read more
Product Spotlight

Six software principles unlocking value for commercial refrigeration

Here at AoFrio, we understand the importance of connectivity for our customers. It helps them optimise their refrigeration hardware and reduce inefficiencies and costs including power use, locating and recovering assets, unscheduled maintenance and restocking. Read this article to find out how AoFrio builds systems that enable our customers and partners to make informed decisions on their fleet management.

Read more
SixP
15MECR
Whitepaper

Building a giant: Wellington ECR Motors surpass 15 million sales

As we celebrate our monumental achievement of 15 million motors sold, we share the incredible journey of innovation and technology behind the creation of AoFrio's market-leading Wellington ECR motors. Read the whitepaper to learn more about this journey.

[winner69]

I see AOF have subtly mention SaaS in their recent announcement

Hey let’s value as a SaaS company eh

[Lola]

I see AOF have subtly mention SaaS in their recent announcement

Hey let’s value as a SaaS company eh

These have seen a nice recovery lately. Perhaps you are right Winner but in addition there's been the mutterings from the new PM that he will seek a free trade agreement with India. Now that would help! Mind you Mahutu said it would be a waste of time trying anything so encouraging.

[Flugenbear]

Share price been heading south again.
What's up?
I still wouldn't rule out a capital raise.

[ronaldson]

The NZSA Auckland Branch company visit to AOF's premises in Appollo Drive, North Shore, earlier in the week was quite well attended, and I noticed Oliver was one attendee on that occasion. These are always enlightening and you usually get an in-person presentation from the CEO and CFO as on this occasion which guides understanding better than just a slideshow or simple read of material in my opinion.

They were commendably upfront in a recent NZX announcement about the risk of breaching one banking covenant, but I inferred that actually isn't a problem currently and I very much doubt it would be apt to attempt a capital raise given the current share price and understood that it isn't under consideration - if that helps?

And I did suggest a 1 for 10 share consolidation but that isn't a priority just now. I was told they had a share register cleanout of around 1800 holders that didn't reach the marketable parcel value threshold a year or so ago.

Quite proud this is a NZ company, even though its manufacturing base is offshore - Vietnam and Mexico mostly.

I don't know how to rename/retitle this thread this thread but that should be someones objective.

[winner69]

AoFrio being touted as next NZX takeover target

Seems Mike Daniel wants out

https://businessdesk.co.nz/article/markets/is-this-the-next-nzx-takeover-target
Prob paywall

[whatsup]

AoFrio being touted as next NZX takeover target

Seems Mike Daniel wants out

https://businessdesk.co.nz/article/markets/is-this-the-next-nzx-takeover-target
Prob paywall

AFo/WDT was the child of Ray Thompson who championed it in the mid 1980's , so far despite it checkered history and massive financial support from instos, family and diehard share holders it doesnt seen to have cracked it despite its business model and perseverance , so is there someone out there that knows better than history. ( Ive been on board since the mid 90's as I knew Ray.) and wait with much interest along with the poor suffering S Hers. !!

[winner69]

That Mike Daniel pretty good at getting media to start speculating about takeovers ……put a rocket under AOF today

[kiora]

SP has been a rollercoaster.Plenty of upside? Time will tell

https://stocknessmonster.com/charts/aof.nzx/

[whatsup]

Did anyone log into todays headsup ?

[Wai Wai]

Inspirational

[Lola]

Inspirational

What/how come , better than the Blackcaps batting efforts in Wellington?

[Wai Wai]

Very close!

[bottomfeeder]

Comment removed.

[Lola]

Inspirational

The Chair , Mr Scott, clearly thought so too. He topped up quite nicely over last few days.

[kiora]

Really need to crank up the IOT
"Q1 Improved Trading Performance and FY2024 Guidance Maintained"
https://stocknessmonster.com/announcements/aof.nzx-429947/