WDT - Wellington Drive Technologies

[tsb]

The Mexican order was for 400,000 units if I remember correctly. Does anyone know if this firmed up or is it still sitting as "intent to order"??

[emearg]

It was interesting to see the directors taking up their shares. And the chairman buying in in a big way!! Good to see them putting their hard cash behind the business. They obviously have faith it will be a winner...

Here is a link about Wellington motors including the new ones coming out this year.

http://www.nxtbook.com/nxtbooks/bnp/ad0409/#/32

[Nevl]

Yes I think the directors know how negotiations are going. Given that sales this year are expected to be $40mill and the value of the company is about $70mill. There is plenty of upside if one more Total Intergartion sale goes through. They have I think 3 more deals that are in negotiation all with potential sales of several million motors. If we take it that each motor sells for around $35 then the potential for a doubling of sales is pretty good. The Panasonic deal would be the biggest of course and I would like to get an update on that one.

Yes the 400000 is a confirmed contract that they are delivering motors on at the moment!!

So thats 600000 other motors to smaller customers.

[craic]

And still no profit after 10-12 years?

[sharer]

And still no profit after 10-12 years?

I think the recent Report indicated Operating Profit expected now in H2 2009.

[emearg]

And still no profit after 10-12 years?

True. But it has only been the last four or so they have been worth selling in quantities worth mentioning. And at the start most of the sales were AirMovent which didn't impress me much. Now they are selling their own designs in every increasing quantities. Even if they don't break even this year 2010 should be a good year. They have desirable products, they are capable of producing them in adequate quantities and a market for their product now exists. It has taken a long time for that last one, but the world is slowly waking up to the realities of waste.

[Nevl]

Also the first 10 years of the compnay the business model was seriously flawed and set back the compnay considerably. The asking for huge licence fees and pie in the sky estimates was just dumb. Ross Green did well to actually rescue the company after all the lousy decisons and stupid ideas. They concentrated on a few products that work and have easy to understand economics.

I still think are getting a lot wrong but slowly heading in the right direction. Though Craic is correct we should of being at this point 10 years ago.

[emearg]

I still think are getting a lot wrong but slowly heading in the right direction. Though Craic is correct we should of being at this point 10 years ago.

I am very interested to hear what you think they are doing wrong. Are you able to elaborate? Cheers

[Nevl]

I am very interested to hear what you think they are doing wrong. Are you able to elaborate? Cheers

Capital Raising's have being peicemeal and not very coordinated. They should have raised $100 to begin with about 3 years ago rather than this 10 mill each year. They also get enanmoured of side shows such as that seaweed dude they tried to hook up with a few years ago.

I still feel they lack ambition and are not really willing to go 110% which is what a product like this is needed and I also think they are too ready to settle for the commoditisation of the product rather than really create a Wellington Brand and push that.

They are at the mercy of the customers though to be fair they did turn down contracts that they felt undervalued the product.

To be fair some of the criticisms have being addressed but only after a lengthy and energy sapping process that has allowed competitors to catch up.

I still back WDT and have a lot of shares but like Craic feel it has being a story of missed opportunities and misplaced energy.

[ekman]

I have a holding since 1996 and share the sentiment with Nevl. I also belive that some of the directors should now be replaced.