WDT - Wellington Drive Technologies

[Jac]

Thommo (a doctor of maths)has recently sold his "home" for a rumoured $8.75m

[PGL]

MacDunk can say what he wants about this company But you have to give the company credit for this - A NZ company selling manufactured goods under licence into the Chinese Market.

Re: Order Received and Manufacturing/Sales Agreement Reached

Ugur Refrigeration (Turkey) has placed an additional order for 32,000 AirMoVent commercial refrigeration motors, covering their requirements for March 2006. It is expected that orders for AirMoVent motors from Ugur will continue to be received regularly and that they will also begin to purchase Wellington's high efficiency ECR motors in due course.

Agreement has also been reached with Changzou Match-Well Electrical Products Company ("Match-Well") of China. Under the agreement, Match-Well obtains rights to manufacture and sell Wellington's new ECR81 motor to customers for commercial refrigeration and other products in the Peoples' Republic of China, and supplies motors to Wellington. Electronics and software for all ECR81 motors, including those sold in China, are supplied to Match-Well by Wellington.

Match-Well (www.match-well.com) is an established manufacturer of conventional AC motors and other products. They have identified strong demand in China for motors with high efficiency, due to the current shortages of electricity there.

[duncan macgregor]

PGL, That is what is good about a forum like this it gives us a wide range of view points to consider in making our investment decisions. Its your money involved not mine, which makes it that you have to be right mine is only an opinion. macdunk

[PGL]

Duncan, your opinion is as good as anyone's and you have every right to it IMHO

It just occurred to me that this particular news release would give you pause for thought.

You have told us that we shouldn't invest in NZ manufacturing companies because the Chinese would be more competetive at this (so no FPA for you - fair enough I say)

You have also told us not to invest in WDT because the chinese will steal the patents and out-compete for the same product (also it seems, the MD "gets paid too much" whatever that means)

So what do you think of the fact that WDT can sell their technology into the Chinese market and clip the ticket on the way through? - I think that this is pretty cool.

Cool (and clever, you would have to admit) because the Chinese manufacturer that has sole distribution rights in China will know,and will be able to enforce (in a way that no western company could ever hope to) how to prevent its rights from being ripped off by the Chinese.

Did you notice how low the volume of rights trading in WDT was - barely 1% of shareholders chose to sell their rights, choosing instead to stump up with the extra cash - are they all fools in your opinion?

[duncan macgregor]

PGL, Good to see rational debate for a change on the forum. Nobody is ever right all the time, so we must expect to get it wrong sometimes. When i get it wrong it costs me up to the time it hits my stop loss then I get out regardless of how right I might feel. All good investors never buy in a downtrend, WDT is in a downtrend. All smart investors have a stop loss, WDT hit every stop loss in the book. To trigger the enthusiasm of the gullable come up with a new product, then exploit them for all they are worth. That is the reason that I selected WDT and CER in the bad share competition and was third. The chinese dont recognise patents like we do. The kid next door has a chinese buggy with a motor that is an exact replica of a honda with no names or numbers. Honda parts can be fitted. Remember the old austin engine in the sixties, Datson made a car with the the exact same motor which was just another nail in Austins coffin. WDT have created huge losses for their shareholders, promised the earth and delivered very little. I really would be very surprised if they ever show a profit I think as an investor who cares better prospects else where. macdunk

[kiwi_on_OE]

If you factor in the rights issue then WDT appear to have been in an uptrend since early Nov, hence my earlier comment about a 20% gain since then. Perhaps a TA expert can comment. My even earlier comment on another thread about it dropping after the rights issue could also be about to come true, as the price does seem to have stalled recently.

Although I haven't seen an announcement, it appears as though extra shares of about 8% of the rights were available to those that applied e.g. pre-issue holding of 4000, rights of 1000, extras ~80.

[ekman]

6.0 mil loss, new order of 400.000 units and more to come. When will wdt become profitable

[Codfish]

A quote from WDT's Media Release today puts their latest order for 400,000 motors in perspective.

"The Company delivered in excess of 350,000 motors in the 12 months to end June 2007, a 75% increase on prior year. We have now shipped over 700,000
motors in aggregate, and we expect to ship our millionth motor during the
2007 calendar year."

So, this one order, assuming it is completed, comprises 36% of WDT's total output up to June 2007.

There was also a "Total Integration" order form another US company for "a common appliance that is used in many households, offices and light commercial premises in the United States and worldwide." Confidentiality cloaks this order in secrecy but it sounds like air conditioning or air extraction.

Quite a big jump in production due this year then. A good start but can they deliver? If they can, the numbers should make more interesting reading next year.

This bottom feeder is fat and happy to hold.

[Lizard]

Previous thread can be viewed here, since it doesn't seem to have made it across.

I'd like to repeat my earlier note here - that my rough calcs suggest they need to be selling 10m units per year within 3-4 years to be worth current price and would have to do this without raising any new capital.

Of course that's just the long term view. Sentiment can take it anywhere between now and then.

[Phaedrus]

I think it is pretty clear where sentiment is taking WDT, Liz.
Short-term, medium-term, long-term, makes little difference.

It appears that the market agrees with your valuation.