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/announc...dt.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/3...+29+March+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-websit...338/345001.pdf