WDT - Wellington Drive Technologies

[jonu]

We were talking about potential for WDT over 20 years ago when it was on the NZX grey market. Still not realsed its potential, millions and millions of share watering down later. Very little potential now, with so many companies with similar products. Plus I dont know what happened since but I dont believe they even own the patent for their product. Pay all the costs though.

Missed the bottom on another one ay?

[jonu]

Nice to see WDT outperforming the market again today. Scanning across the board I feel many SPs have got ahead of themselves in the bounce. Not so WDT. Steady upwards she goes.

[Leftfield]

Maybe the reason for the recent climb in SP revealed in this documentation. WDT purchased over 2 mill shares on the market on behalf of their staff incentive scheme.

[Anna Naum]

Maybe the reason for the recent climb in SP revealed in this documentation. WDT purchased over 2 mill shares on the market on behalf of their staff incentive scheme.

If you read the Doc, they bght 73,790 ONLY shares for $7k total not the 2m you suggest.

[sb9]

Pretty decent update from company this morning.....

[Caesius]

Yeah all things considered it wasn't too bad, enough for me to put a bit of cash in.

[Leftfield]

Pretty decent update from company this morning.....

Agree. Here's the link for those interested.

Gross profit $4.5m $4.1m +8%

Gross margin % 29.4% 26.2% +3.2pp

EBITDA reported $1.50m $0.99m* +51%

EBITDA pre fair value adjustment $1.01m $1.09m -7%

EBIT $0.91m $0.38m* +$0.53m

Profit before taxation $0.79m $0.09m* +$0.70m

[forest]

Pretty decent update from company this morning.....

Your right sb9, head line of this announcement could have been "First quarter profits higher than profits of the entire previous year".
Not to many companies are going to be able to do that this year I would think.

[Timesurfer]

As usual market reacts with over-whelming enthusiasm to the good news.

[Caesius]

Youch, bought in last week as I keep thinking companies like this are a bit cheap at the moment, I need to learn from mistakes. Out of interest I did a really rough DCF analysis on WDT - from the figures I used, which are probably very wrong, it still comes out overvalued even at 11 cps (although whether DCF even applies to a company like WDT is another question).

What that outlined to me is how difficult to predict their cashflows are. I know they have a large tax offset, but maybe I'm crazy for thinking last year's positive cashflow was the first of many. From what I've heard they are a clever bunch technically, but so many companies seem to suffer from this issue of being technically good but poor finanically.

I will hold for now, but in hindsight, I think around 11cps is probably fair value.