WDT - Wellington Drive Technologies

[mikew]

Sold my 1m shares spread from 2.1c to 2.3c, my average buy price was 1.375c, made good profit, very nervous to hold this one, can't see any upside from this company, they could come back to shareholder asking more money this year.

[J R Ewing]

They could. Would need a share consildation first tho ...

Why? Can't the NZX system handle companies with a trillion shares!

[Awamoa]

the problem would be in making sure you had the correct number of commas when buying and selling

More like the system is not set up for their value ie .0000001 cents

[Awamoa]

Down to 1.5 cents today.
Man this stock is a winner.

[Raven]

A bit of a shake up at WDT with a new CEO on the way. Great to retain Dr Green to ease the transition. Things seem to be ticking along ok as far as sales go and a share consolidation is probably a good idea considering the share price at the mo. Any one with a bit more trading skill have any thoughts on this.

'Strong lift in refrigeration motor sales for Wellington Drive Technologies
Wellington Drive Technologies has made a strong start to its 2011 financial year with NZ dollar revenue growth for the first four months to April 30 of 53 per cent versus prior year, driven by US dollar revenue growth of 64 per cent and sales volumes growing by 59 per cent to reach a total of 420,000 units for the period.
Based on unaudited management accounts for the first four month’s trading, Wellington achieved revenue of NZ$11.9 million and an EBITDA loss of NZ$2.3 million.
Wellington’s electricity saving refrigeration motors increased sales by 78 per cent during the period, including Wellington’s first ever sales month of more than 100,000 ECR motors.
Since the end of April, trading has continued at a strong level with Wellington selling its 500,000th motor for the year during the month of May.
Wellington is continuing a strategic review of its smaller ventilation motor business, with the process expected to be completed during the coming two months.
Wellington also announced today that the board had agreed to a request from Chief Executive Officer Dr Ross Green that he move out of his role as CEO upon the appointment of a replacement, and into a more focused support and advisory role, assisting the new Chief Executive Officer to consolidate current markets and relationships, and to develop new markets, customers and partners, particularly in Latin America and China.
Chairman Tony Nowell said “We thank Dr Green for his efforts in leading the company to its present stage of development and are fortunate in being able to retain Dr Green in the business, given his unique knowledge of our customers, international markets, products and technology. Bringing a new Chief Executive into the business will allow Dr Green to refocus his efforts on supporting Wellington’s international market development.”
The Company is conducting an executive search for a new Chief Executive Officer, with Dr Green remaining in his current role until an appointment is made, and thereafter as Advisor to the board.
Following the completion of a rights issue in February 2011, Wellington now has a very large number of shares on issue. The Wellington board also advises that it has resolved to undertake a consolidation(“Consolidation”) of the existing ordinary shares (“Shares”) on issue in Wellington. Under the consolidation, every 20 existing Shares held in Wellington on June 30th 2011 (“Record Date”) will be consolidated into one Share. As a result of the Consolidation, the number of Shares on issue in Wellington will be reduced from 1,347,327,970 Shares to approximately 67,366,399 Shares.
Wellington’s Annual Shareholders Meeting will take place on June 28th.'
__________________________________________________ __________________________
Tony Nowell
Chairman
+64 9 414 6590

[J R Ewing]

Given that they are still making losses, I wonder if the consolidation is to prepare the ground for another rights issue.

[Master98]

Given that they are still making losses, I wonder if the consolidation is to prepare the ground for another rights issue.

I have same feeling.

[winner69]

Are you sure about that? The sales increases, even with slim margins, may have turned things around.

Hey Belg ... better not tell Liz about the consolidation .... we will do well in the NZX competition if she doesn't know


Off course they are still losing money - what would make you think otherwise

To put more respectability into the share price it should have been a 200 for 1 and not the 20 for 1

[Lizard]

Hey Belg ... better not tell Liz about the consolidation .... we will do well in the NZX competition if she doesn't know

Okay, I am busy, but I am not yet comatose...

I'm still trying to figure the numbers - probably needs checking 10 times in my current blur, but that $2.3m EBITDA loss looks to me like they may be managing about twice the gross margin of 1H10 for a 4 month gross profit around $2.3m also. If so, that would be a big improvement over the $1.1m earned on $12.5m revenue in first half 2010.

Also, I think that the news on Ross Green "requesting" a sideways move to allow for a new CEO is exactly what has been needed. Though I admit to reading it twice to check that it wasn't the Board "requesting"... I really would hope that he feels able to stay involved and feels adequately appreciated for having overseen the growth to date. Whilst profitability has evaded him, I think he can be proud of the sales growth and the ability to engage investors in his dream. The right CEO and Ross Green's continuing support might just be the combo that can get this business through the never-ending hurdles to being a real-deal manufacturer established in modern NZ.

[Novitiate]

WHAT HAPPENED!!! Am dreaming??!!! 0.30!!!! Is this reality, or just a glitch in the system??!!