OTI

[skinny]

You'd have to be a kiwi and over 30 to get it
Point is that if margins are not positive selling more veggies off the bigger truck isn't very smart

[robbo]

KD--saw your note re. Meeting Place, Time and Date.
That's the shin dig with the Table-Top Dancers right! Thought so...as I know you are ALL depending on me to show...and ASK the Right Questions.
cheers davidrob[:I]

quote:Originally posted by skinny

You'd have to be a kiwi and over 30 to get it
Point is that if margins are not positive selling more veggies off the bigger truck isn't very smart

[David Hardman]

David

So you will be at the meeting tgomorrow morning?

Got your questions sorted?

[thereslifeafter87]

Lots of points of interest in the chairmans address...

Still making a profit, even with the lead price rise!

Also hints pointing to future acquisitions as the industry consolidates. Couple that with the new factory coming online in 4th quarter, and prospects for 2005 and beyond look interesting.

It would be good to know the exact production capacity of the new factory, then we could attempt to predict possible revenue for the next few years...

[KD]

I've been away this week and have just caught up on announcements. The Chairman's address was quite informative and touched on many of the issues raised here over the last couple of months. I thought the address ended on a most positive note - ' the industry's inevitable consolidation will speed up in China ... creating more opportunities for our company which is well positioned to take advantage of the situation'. The overall impression I have is that management is dealing with current issues and plans are on track. Short term issues which are holding back profits in the short should be to our advantage in the long term as they are providing not only an opportunity for us to accumulate stock at an attractive price, but also an opportunity for the company to expand. It is reassuring that OTI still managed to turn a profit despite lead prices and without seeing benefit of price increases passed on to customers. Cantab - thanks for above thoughts and good you're still buying. Looking forward to hearing back from Robbo.

cheers

[Dimebag]

Thanks everyone for the informative comments.

Haven't bought any more myself just yet but still holding the 10,000 I bought a few months back.

Cantab, my understanding is that there is a 20% profit share agreement, and then on top of that there is the obligation to pay 20% of profit up to $21m, or for 50 yrs.

The 2003 annual report shows $3.5m proir to profit share, ~ $2.6m after profit share of ~ $800k, and then $2.1m after the payment of $500k under the 21m/50yr plan.

Eps haven't deducted this final payment as I guess it as seen as retirement of debt more than anything. If you strip this away, eps was closer to 1.8cps last year.

However, I'm in agreement that OTI do look promising for the patient LT investor. It is unlikely the price will do much in the short term IMO barring a significant announcement.

Cheers
Dimebag

[KD]

OTI holders,

back from Suncorp Stadium having watched the Reds demolish the Warratahs and, despite too many cellar-brations just couldn't help myself but tune into ShareTrader & OTI. I have to ask...where is Robbo?? (I was very much spooked by the Wesfarmers presentation by "David Robb' in charge of 'Energy'....(and plenty of energy with our Davidrob!!!)....Robbo - looking forward to your report...)

Thanks to all who have posted on OTI...in terms of disclosure ... I hold a number of stocks which are now reaching 12 months in my hands .. thats means 50% CGT discount for me as an Aus holder. I will be taking some profits now and reinvesting the capital in stocks such as OTI and profits (in my wife's name, as lower income earner) in stocks such as ION (@ +10% div yield with prospects of capital growth as well). I thank you all for your comments here on Sharetrader, and in particular, on OTI thread... I am a long term investor and will hold OTI for many years to come....I intend to add to my position and look forward to further discussions here.

cheers

[robbo]

Sorry late with My Report on Oriental Technolgy.

You guys have obviously picked up on the One Big Ostensible Negative; that is the Debt Re-Structure Arrangement. This is, on talking to the Hong/Kong--Chinese directors(whom I will talk about in a minute...) partly a "political" bureaucratic issue, as the debt pay-back arrangement is currently with CVIC and Red Lion Resources. As you see, although this debt is "FORGIVEN";there is still technically a over-hang liability of $21 million. However CVIC is in liquidation, and when this debt is transferred to the Government entity--then this will be re-arranged on much more favourable written down terms...for political reasons as well s commercial..
Still the Liability does LOOK bad and weighs down on the Balance sheet as quite a blot on the old copy book, and for those who run their ruler over the figures, it has the net effect of suppressing the Co's share-Price Valuation to Trade around the 15-17 cent mark..the upper end of thiese numbers possibly approximating fair enough value AT THIS STAGE for OTI.
But that really is the only piece of baddish news I good pick up on this otherwise excellent company. After this short commercial break, I'll be back to tell you all the about the comments of Chris Corrigan, Laurence, George and the Chairman erard Mc Mahon, as well as to give you a feel for what went on.
Cheers \davidrob

quote:Originally posted by cantab

KD, I watched the game on tele and was cheering on the Reds. 9 wins on the trot against the Warratahs is a great record.

I agree with you that OTI will be one to hold long term.

Cheers

Cantab

[robbo]

Yeah, thanks for that bit of really nice filler, during the commercial break cantab!!
Great Comments.
Agree with you; being just a tad more bearish at 14-15 cents, although I note in passing that OTI was up 10 meaningless percent on light trade, on another day when the XOA was down another 39 or so basis points-- a bit of the Senecean pessimist/realist philosopher coming out in you there cantab--heh what!![^]----(not a bad thing in these very corrective, as T.S. Eliot in his letter to Prufrock always reminds us,--April always was...., the cruelest month--,[?]--I think OTI might be a bit more immune to Market corrections as in many senses it is a bit of a defensive like Astron and has its own singular influences acting upon it(namely and primarilly Lead Prices!!!--no thanks to the punters on the London Metal Exchange!!).
Okay then, enough waffle and dribble.
I'm just off to have a nice spot of dinner and I promise the next report will be stictly succinct and cover the salient points; as well as letting all interested parties, in on the technological advances and tangible edge that OTI bateries have for a world full of Special Utility Vehicles like the Volkswagon Tourage needing lighter but more powerful batteries and/or needing two(2) bateries to fit under the bonnet of cars with more electical systems than Old Sparky might have required... (in the days before the lethal injection!!!!.)
The other think I want to touch on, which is TOTALLY relevant to OTI, in the world of car battery manufacturing--is the importance of KNOW-HOW rather than simply technology. This was underlined by Directors-- Lawrence Luo-lin Xin and George S Su
Well then. Dinners served,and getting cold. Back in an hour, or so!!
cheers,
davidrob

G

quote:Originally posted by cantab

Robbo, thanks for those valuable insights into the Debt Re-Structure arrangement. With $20m still to repay, it will take 40 years at $500k pa to repay, assuming OTI lasts that long. The PV of this sum, discounted much further and perhaps replaced by an issue of shares? looms as a big positive for shareholders. You probably have more to add so I wont preempt your final report.

I agree with your fair range value of 15-17c although with the current short term difficulties I would suggest they are worth around 14 - 15c. Hopefully with weak markets we can buy some more cheaper than that.

Cheers

Cantab

[robbo]

Just checking that this bugger reply mechanism is working!! as I submitted an up-date, re OTI; about an hour ago and now I cannot see the response which was previously confirmed. Don't tell me, my last thoughts have been lost into cyber-space. Hmmm..
davidrob--Robbo