WDT - Wellington Drive Technologies

[xpress]

This company has already been approached a couple of years ago about being taken over. The management said they weren't interested, and at that time management had a controlling stake. I certainly hope they are NOT taken over as I have been waiting patiently to get the benefit of all this investment in time amd money! I still think this is one of the best potential investments in our sharemarket at the moment. Go WDT!

[emearg]

Hill Pheonix are taking 180,000 units per year for starters.

You got this figure based on the 500 per day quote? Do you know for sure that Hill Phoenix make their products (and therefore use WDT motors) 360 days of the year?

My calculations were done at a more conservative 5 days a week which comes out to 130,000 units per year which isn't too bad. This would provide revenue of approximately 4.5 million.

Hopefully in 2008 we will see another announcement that Hill have ordered more units since they have only ordered another 80,000 so far. Still, that is a good increase over the 50,000 ordered the previous year.

[emearg]

Hopefully in 2008 we will see another announcement that Hill have ordered more units since they have only ordered another 80,000 so far.

Actually they have only ordered 70,000 so far. Apologies for this error.

[Codfish]

You got this figure based on the 500 per day quote? Do you know for sure that Hill Phoenix make their products (and therefore use WDT motors) 360 days of the year?

Hopefully in 2008 we will see another announcement that Hill have ordered more units since they have only ordered another 80,000 so far. Still, that is a good increase over the 50,000 ordered the previous year.

Yep I'm sure that's how I read it. Can't say I'm moved to phone them up to find out exactly what they meant.

Another announcement, not Hill though. As usual they can't say who but it sounds big!

"The contracted value of the development and production engineering exceeds $NZ1.5 million with products being launched by the customer throughout 2008 and early 2009. Wellington expects product revenues from manufacturing to grow steadily from 2009 onwards in this long-term agreement. "

CF

[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

Thats what I said nearly four years ago. Since then its been a downtrending share asking for money from the gullable and showing bigger losses and promising the earth. Macdunk

[Lizard]

MacDunk,

Summary of WDT revenue:

FY02 $0.3m
FY03 $0.8m
FY04 $0.9m
FY05 $1.8m
FY06 $7.1m
FY07 $10.7m
FY08 $14.5m (reporting period changed)
FY09 $27.1m (forecast)

While you could say that they've extracted money from the gullible to get here, at least they have managed to produce the goods and investors still hold a stake in the outcome. They've typically increased revenue by 75% pa over the last 8 years. Eventually, they will achieve the scale to become profitable. Sometimes I have a suspicion we NZ investors undermine our own market and businesses with our overly-cynical attitude.

In a market more willing to provide new capital for development, the dilution would be less and the early investors better rewarded. Furthermore, if investors are not supportive in providing development capital, then that is one less reason for a company to take up a listing.

Whether a company should or shouldn't be supported in the capital markets comes down to whether the returns on capital invested are ever there and over what time frame. In WDT's case, it looks like the answer might be positive - but in a very long time frame for that early capital. More recent capital has a much better chance of seeing a positive return within 2-5 years.

For the active traders though, the sweet spot probably falls about 6 months before the sales growth kicks into the profit line and we're not there yet.

[Capitalist]

Agree Lizard. I was a relatively early investor in WDT - I sold a couple of years ago.

Sadly scientists in all their guises (bio-tech et al) are crap capitalists and they will not be getting any more of my money.

[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

Its five long years since I wrote that some things never change. Macdunk

[Bobcat.]

Seller(s) have dumped this stock this morning to take its price below 3c, and I've just bought into this pup for a short term play. Even if rises to just 3.9c before the rights go ex, I've made a quick 30%.

[Bobcat.]

...rises to just 3.9c before the rights go ex, I've made a quick 30%.

..or of course if it drops below 2.9 cents and slides further then I'm out of money again with this dog !