OTI

[skinny]

Thanks for the great info from davidrob and other from me too ! I guess we can take out of this lots of positives - they are expanding capacity and the competition is suffering as I had hoped. The margins restoration isn't 100% but if it was I guess we wouldn't have the opportunity to get in at low prices and OTI wouldn't be in the position of being able to expand market share.

In the back of my mind for the long term viability of this company was the fuel cell issue so another positive is that that they are partnering up with some of the key players in this arena (Dadvidrob's 9th point !) And of course also good to hear that they seems to have made the right connections in China - I'm sure my investment in RPL.NZ has not gone as well as it should because of this issue.

...now with all these people in ST getting in perhaps some collusive behaviour on our purchases could be in order, no sense bidding against each other hmmmm

[Alban]

Not sure I'd read much into fuel cells and OTI, skinny. I can't see any reason for a fuel cell manufacturer to speak to OTI. To the best of my knowledge, technical and manufacturing overlap between lead/acid batteries and hydrogen fuel-cells are more or less non-existent. I am, of course, happy to be corrected on this point. [8)]

[skinny]

Alban, thanks for bringing that up must confess I don't know the answer to that one ! Davidrob's point was that they were teaming up to produce power systems in the longer run for Hybrid Electrical Cell Cars and Hydrogen/Petrol-Hybrids, the later of which had me leap to think they were also looking at fuel cells. But perhaps its specialised conventional led batteries ? Can you confirm this one Davidrob ? In any case my cursory reading here is that hybrids look more likely to be the next phase of automotives and pure fuel cell cars maybe a long way away, so OTI is positioning well here still.

[clearasmud]

Skinny,
agree hydogen cars are 15-20 yrs away.Have to wait until the oil runs out.

[ynot]

ive jut been reading up on the hybrid car.early days yet but production increasing.production levels estimated this year equal last 4 years production.
what i dont know is does OTI have the ability to build the type of battery required by the hybiid.
currenty hybrids are using nickel metal hydride,
[as opposed to your common lead acid battery.]
replacing the nickel metal hydride will be the lithium - ion.
this has 4 times the energy density of the lead acid and 2 times the energy density of the nickel metal hydride.
does OTI have a future beyond lead acid?

[Halebop]

Hi Ynot.

I think you mean OTI rather than ION?

...Unless ION are planning another acquisition... hmmmm [:o)]

[ynot]

thanks halebop, ION im not so sure about !!

[Halebop]

quote:Originally posted by ynot

thanks halebop, ION im not so sure about !!

Between you and me - I don't think you're the only one!

[robbo]

"LET'S NOT CREATE AN ARTIFICIAL SHARETRADER INSPIRED BUBBLE HERE FOLKS"---
SYDNEY --AUSTRALIA: 8.00 am Eastern Standard Time.
Okay then, maybe,(and that's only a maybe remember....) we're all just a little wiser re. OTI now, but the silliest thing to do now, [as Skinny, so rightfully alluded to, is to create a mini "South Sea Bubble" situation.--ie: an artificial level of demand driven market action, created by, and participated primarily in by ourselves inadevertently.
I mean as always, let COOL Heads prevail here!!!
The market overall, is going through quite a decent bearish correction(although that may change short term after what the market saw as a positive Ozzie Budget, last night, in respect to predicted Inflation and Economic Growth.).
OTI are not Tulips; if you know what I mean by that Danish illustration.
Just to settle us all down a little,with some reality doses' remember the following:
(1)-- For every ONE and half cents (1.5 cents)----we add to say 15 cents, we have said that OTI has now 10% more Value.
(2) Let's not let Short Term Traders eat from our S.T. plate, by driving price up too quickly.
(3) UNTIL the floating Charge-encumbrance, soaking up 20% of profits annually for perpetuity, is OFFICIALLY and expeditiously dealt with, and off the balance sheet, to a significantly larger Degree than it is at the current time, the Market Must inevitably. price In this Risk and Liability. It is as Simple As That.
(4) Ditto the above caveat applies;..... for the Record High current Lead Prices. These are severely hittiing OTI profits at present.That is a statement of Fact and not conjecture. See Chairman's address in Annual Report.
(5) I'm not an expert on pricing Stocks; but I think Cantab said that fair value for OTI is 15 Cents. Maybe, as Dimebag did, squeeze another half a cent. Maybe!! ****Above that, you are paying a Premium for expected Future blue sky, and not current or historical earnings.***
(6)OTI is not a Newsy Company. They only report what [u]has</u> happened,and has been audited and achieved. They are not like some other co's, and speculatively report what they hope might happen. They certainly do not retain a Investor's Public Relation's firm to spruick every nuance, and change in the weather pattern, over Antartica, that because of the greenhouse effect will probably lift the share price!! OTI mgt leaves leaves that to the mad-cap Bio-Techs and I.T Dot Coms;and to the wildcatter,"rock-kicking" Western Australian nickel and gold explorers to indulge in.
OTI are NOT in the speculative game.
So let's all NOT get sucked in here. Its okay to Hunt with The Hounds,though not with the crowd of lemmings. But certainly let's[u] not</u> run with the hares. Always.f course, remeber the homilie, that the brief joy of exhilihartion in snaffling stocks at too high prices very quickly dissipates into annoyance with oneself, on seeing these very same stocks(as good as they intrinsically may be), retreat back to sensible value opportunity levels. OTI; IMO.... IS a good Investment. But only "at the right price".
Cheers,
davidrob (Robbo)
Disclaimer: The above comments are purely the personal ruminations and opinions of the author and are said on this internet chat site on a: totally "without prejudice basis". The comments do not represent the views of OTI and are of a personal nature only.Also they are not, and are not intended in any way to be construed or to be taken, as Financial Advice, and should not be taken as such. Investors as always, should make their own enquiries.
The author does indirectly holds shares in ASX code: OTI.
[quote]quote:Originally posted by ynot

ive jut been reading up on the hybrid car.early days yet but production increasing.production levels estimated this year equal last 4 years

[Dimebag]

Cantab

Yeah agreed. I'm done buying for now. I was just uncomfortable with such a low stake of A$1,500 or so when I thought this was a good stock worth owning. So I've upped my stake to a more respectible A$5,600 (about 7% of my portfolio, compared with about 2% previously). I'm happy with that for now.

Do any punters have further comments about the possibility of substitute products longer-term (hydrogen cell powered or something?? Can someone enlighted me?).

Has someone already developed the technology?

These developments would impede OTI's ability to increase prices. A significant increase in price would no doubt prompt the punters to start looking for alternative and more cost effective inputs to manufacture batteries more cost effectively.

What is OTI's R&D budget like? Are they investing in the development of competing technologies? Is this a non-issue in the foreseeable future?

Interesting I ask all these questions after I have bought a stake.

I think there is some truth to the saying that you never really know a company until you have owned it. Having your hard earned on the line heightens one's awareness!

Interested in peoples comments about the above questions.

Cheers
Dimebag