WDT - Wellington Drive Technologies

[Nevl]

I'll be celebrating if/when they stop losing money...

Haha fair call. Still they seem to have got a better handle on expenses. I would however like to see one of their Total integration projects lead to actual sales!! That's my biggest issue with the company so far. They get these projects but non have lead to sales yet.

[kiwi_on_OE]

Footsie I agree - it might be the last capital raising, no matter which way the company goes from here. Comments about sticking to existing products etc. makes it sounds like they know they have to deliver now. Maybe HH have put the hard word on them.

winner69 - on face value 14m loss on sales of 23m is 'impressive'. But if you believe the figures they put out, then break even on sales of 40m may be possible. Margins on sales are positive, it's the operating expenses that are the problem.

[Nevl]

Not many people took up their shares in the latest issue suggesting that this is the end of the line for WDT going to shareholders. From here on they are going to have to provide real profits.

Still I think that may be a good thing and will be looking forward to January when they release their next results.

[emearg]

They raised less than 12% of the total they might have if all shareholders had taken up the $5,000 option.

That isn't a good result. The market isn't kind to under performers at the moment. The market is even less kind to companies whose projections prove to be wildly optimistic year after year.

WDT is both.

Their website has been updated to include a 48 page, 2010 Ventilation Catalogue. It looks like their product range has increased quite a bit this year and looks pretty damn good. Hopefully they/their European distributor can actually sell a decent amount of product at sensible enough prices to make some money.

I really have to wonder about this company!

I took up my rights so I really have to wonder about my sanity!

Directors have been buying heavily lately so who knows? Hunter Hall must see something positive to come?

Fingers and toes crossed but I'm not sure I have enough limbs for this company to pull through...

[winner69]

...........Hunter Hall must see something positive to come?

.... Hunter Hall saw a lot of positives in Feltex and NZ Farming Systems as well .... they don't seem to have the same feel for NZ companies as they do fro Aussie ones

[emearg]

.... Hunter Hall saw a lot of positives in Feltex and NZ Farming Systems as well .... they don't seem to have the same feel for NZ companies as they do fro Aussie ones

Sadly enough I don't disagree.

I really don't see why they can't pull back on expansion, reign in expenses and sell their products at a reasonable price and therefore make a profit.

It doesn't sound that difficult and yet????

[Nevl]

Sadly enough I don't disagree.

I really don't see why they can't pull back on expansion, reign in expenses and sell their products at a reasonable price and therefore make a profit.

It doesn't sound that difficult and yet????

Sorry but I think you describe everything that is wrong with NZ business. Our companies suffer from a lack of ambition and the unwillingness of WDT to get a handle on this 8 years ago is exactly whats wrong with it today. If they had raised $100mill in 2002 and then launched enviromentaly friendly products in Europe and the US with energy efficiency their selling point and with enough cash in their pocket to get established they would have done a lot better. Instead they tried to do a safe license system with no real product and most importantly no competitive threat to be taken seriously. Why should the users of electric motors change if there is no reason for it. The only way to get them to change was to provide an alternative where the cost of not changing is the loss of their markets to the new guy. WDT had that chance and Ross Green got their too late to do anything about it. Now we have had to wait 8 years to get to where we should have being in 2002.

This attitude of "oh my god its so hard, lets buy a house" has not worked for NZ. We need to get out and compete and go for it. None of this oh it's too hard come home crap.

[Silverlight]

Large holder sold out today with a sale of 17.9m shares.

3.2% of market cap, so if they own more than 5% I guess we may see an SSH notice.

Hunter Hall 171m 30%
AXA has 61m 10.8%
ACC has 34m 6%
Graeme Alex Thomson had 24m at 11 Dec, (down from 5.6% to 4.28%)
Norwood Investments 18m 3.3%

[emearg]

Wow, that was a big trade! I wonder who bought in? Not at any discount from the looks of it. The rolling year sales for WDT is only 53 million shares, so today's sale was a big event!

I can assure you all I wasn't the buyer!

[Silverlight]

The trade was 17,921,559 shares @ 6.5 cents, so around a 20% discount to market value.