WDT - Wellington Drive Technologies

[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]

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?

PGL wrote that on 22-12-2005 when i think the share price was in the forty cent region. The share price is 16c today, so what went wrong?. The company at that stage was being bled dry by over paid management who seemed more interested in feathering their own nests than rolling their sleeves up and getting on with it. Promise after promise real pie in the pie stuff with the share holders being asked to fork over more money.
it seems this company will always make a profit next year, but never this year. I wonder how much money they have to make for the gullable long term share holders to even get their money back. Macdunk

[emearg]

PGL wrote that on 22-12-2005 when i think the share price was in the forty cent region. The share price is 16c today, so what went wrong?. The company at that stage was being bled dry by over paid management who seemed more interested in feathering their own nests than rolling their sleeves up and getting on with it. Promise after promise real pie in the pie stuff with the share holders being asked to fork over more money.
it seems this company will always make a profit next year, but never this year. I wonder how much money they have to make for the gullable long term share holders to even get their money back. Macdunk

I think the global economic crisis happened which has effected the share price much more than bad decisions and slow progress. In the last 52 week period WDT's share was at 40 cents. For the first part of the crisis it help up pretty well, but collapsed when the rights issue was announced.

Obviously buying WDT five or even one year ago wasn't a great idea...with hindsight.

But that last line applies to most shares. While some sold their entire portfolio before the crisis and collapse of share prices globally most didn't.

Long term holders will need to be patient to get their money back, but so will those who held Telecom shares which were once thought of as one of the most solid stocks in our market. Not everyone would have agreed with that claim, but the market as a whole did.

Dunc, do you think they have moved on from pie in the sky thinking? Have you bought any or will you be buying any any time soon?

[duncan macgregor]

We are not debating the general market only a particular companies progress to profitability. The promises made then with the benefit of later hindesight the result. We all know the market crashed some of us were wise enough to predict it, others had no escape plan and followed it down. The point being, read back at what was said in the past, with all the blue eyed brigade expectations over the years, then ask your self what has changed?.
The past is the past, the company dithered about in the good times bleeding the investors promising those elusive profits the following year.
Now that the bad times are upon us, the only thing that has changed is the market in general.
All manufacturing companies will only operate in slave labour countries in the future as i predicted, with patents not worth the paper they are printed on. Factories are relocating overseas, we import chinese replica engines of honda for an example in beach buggies.
What makes you think WDT electric motors will be the exception?. If patents were worth the paper they were printed on why does NZ import replica fakes. The company should have been running at a profit years ago, read back at their promises with an open mind before filling the troughh. Macdunk

[ekman]

it seems this company will always make a profit next year, but never this year. I wonder how much money they have to make for the gullable long term share holders to even get their money back. Macdunk

Gullable long time holders would have an entry price below present share price taking up all the rights issues over the years. The company has a manufacturing site in Auckland and two in China a logistic manufacturing center in Singapore, sales teams and logistic centers in North America and Europe. New designed products are being introduced to the market. The risk of patents being copied is the same for any succesfull product manufacturer. To create a succesfull product and brand takes many years. I belive it took Microsoft 25 years to get where they are today

[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

[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.