WDT - Wellington Drive Technologies

[SMan]

Looking through their last report they seemed rather worried about the kiwi dollar being too high. Fact is it probably not going any lower for quite sometime .

Ratkin I agree the US dollar is not looking to recover anytime soon, however, WDT have indicated their intentions to expand within the european markets with several sales reps recruited for this task. I suspect the NZ dollar will weaken against this market providing some gains to offset the reduced US market profitability. Some of their first international sales have been to european/asian based companies...

[upside_umop]

they will still make a loss this year, so no profit as it would be said.
looking good though, i like the potential but will the shareprice move north at a good rate in the future?

if it gets more orders in timely fashion it should do well.

[bermuda]

Incredible hold for a share the number crunchers hate.

I thought I might add a little snippet bearing in mind that Ray Meyer is on the Board.

This is the same Ray Meyer who is on the Board of NZOG. And someone who was at the NZOG AGM had the gall to say he was all hogwash.

A very very talented and wise man.

[upside_umop]

Incredible hold for a share the number crunchers hate.

Tell me what you expect from this stock in terms of revenue, profit, shareprice in the future.

Lizard? has given guidelines to what he thinks profit should be in the future to justfy a company with a market cap of over 150mill.

They havent had revenue break 5 million a year, they compete in what will be a very competitve market, profit unfortunately has never been spoken from the lips of the CEO or chairman. They shareprice was 60 cents 3 years ago, options have been handed out mind you...but still nothing exceptional.

Im not doubting this stock, but it will be consistently hard work for the company.

Your of view on how you see it unfolding welcome, or anyone else for that matter.

[emearg]

They havent had revenue break 5 million a year

Revenue for the year ended 30 June 2007 was 10.6 million up 60% on the previous year.

[upside_umop]

Revenue for the year ended 30 June 2007 was 10.6 million up 60% on the previous year.

Teaches me to do my research, I did see they were in the Top 50 thing the other day, but it didnt state there what their revenue was in the paper.

A pity that Colombus couldnt point that out to me earlier, I'm guessing he is a current shareholder? Colombus, please disclose and dont leave little riddles - you seem to do a bit of that on this thread...

Also, you going to disclose your figures for revenue, profit, and shareprice over the next 12 months?

[zigzag]

According to "Unlimited" magazine, WDT came in at no.18, with revenue growth of 400%.

[Nevl]

I think Ross Green has stated that he expects profit in the second half of next year. As to share price I expect it to remail in 45 to 50 cent mark for the forseeable future. However this is a announcement related share and the price will rice and fall according to sales announcements not any fundamentals.Still as I have stated before this company along with Rakon probally has the most potential over the next 5 to 7 years. A 1% market share in its field is $1bill in sales. That is small electric motors. Given the need to cut energy costs and the economics involved I think this is possible in 5 years. Whether it will be acheived thats another story.

This may be of interest to anyone. Even gives figures for the US market

http://findarticles.com/p/articles/m..._63607835/pg_1

[Codfish]

Soon they will have bagged more orders since the rights issue than they have sold in total before it.

[Codfish]

Hill Pheonix are taking 180,000 units per year for starters. Impressive, yes, but it isn't all good news...

" Notwithstanding the solid revenue increase, the operating loss for the year increased from last year. This was partly a result of delays in finalizing contracts and partly a result of the Company's decision to accelerate its overall activity levels in order to capture as much of the market opportunity as realistically possible. Nevertheless, overheads have been well-managed and ended the year in line with the planned increase, with a doubling in offshore based infrastructure costs and New Zealand costs managed to less than a 20% increase.

We also saw an adverse impact of $0.7 million, due to revaluation of US dollar denominated assets, namely cash and receivables. The appreciation in the New Zealand dollar also reduced our reported revenue growth, essentially all our sales being denominated in Euros and US dollars. As most of our stocks are also purchased in US dollars, we were hit twice by the New Zealand dollar appreciation. Recorded margin improvement was reduced, due to stocks being purchased earlier in the year at less favourable exchange rates than when major billings were made.

Although we would naturally prefer the Company's financial results to be better, the results have to be viewed against the stage of rapid growth the Company is in and the current volatility of exchange rates.

Cash balance at year end was about $13 million, reflecting the successful rights issue concluded in June and helped by a small reduction in working capital compared to the previous half year. However, working capital requirements will continue to show significant variances over the next few years as we deal with early growth of new customer accounts and the introduction of new product lines. We continue to expect that working capital will decline relative to sales levels over time, but in absolute terms we expect that working capital will rise and that investment in working capital will remain substantial for some time.

Your Board and senior management are currently considering some important decisions. On our current path, we are confident that the company can move into profitability in the second half of next calendar year. However, some
large opportunities are on offer. If properly exploited these could lead to rapid growth of volumes of both standard products and those developed specifically under Total Integration programs in 2009, 2010 and beyond: volumes that would be substantially higher than present expectations. Capitalizing on these opportunities, as always, has associated up-front costs and investment that would potentially delay the Company's transition to profitability. This, however, would be balanced by substantially greater upside in later years. Should we choose to make any material changes to our plans we will communicate these changes (and their associated financial outcomes) to shareholders at the time. "

I imagine some will take this a cue to exit the stock for a year or so. Another Capital Raising is in the offing or maybe a cornerstone shareholder. I'd prefer the former though it won't be 10c a share this time around!

They should stop pussyfooting around and go for all the money they need to do the job. Be bold WDT, go for gold and don't sell us all out to the first big player that comes along with "tomorrows price today" for us shareholders and six figure pension plans for all the directors!

CF