WDT - Wellington Drive Technologies

[jonu]

.... welcome Jonu to the Bargain Basement WDT club! Crazy buying opportunity for this top shelf company...now holding 250k and may keep topping up. Massive tax credits combined with long-term growth bodes well for future. ....IMHO.

Liquidity is an issue in taking a decent stake in this stock, so I was pleased to pick up a decent number. I guess whoever sold them was pleased to be rid!

[GR8DAY]

.... some panic artist who will (probably) live to regret it.... but hey we've all done that at some time.... part of being human I think! When the dust settles on this current mess I expect WDT to return fairly quickly to a SP in the 15 to 20c range, sit there for a bit b4 climbing back to wards 25/30c..... might take a wee while but that could make for an impressive gain %wise.
A very well run company producing goods that an energy conscience world needs.

[GR8DAY]

.... conscious

[Cadalac123]

I really thought and think they were going in the right direction in their space. I sold the majority of my holding a little before the crash after the announcement about the warehouse, only because I thought the company would be a few steps behind on fulfilling the contracts required for their projected growth - accordingly I felt the guidance would not be met and sold my shares as I feel it may be a poor report coming up - that said long term may be a good hold.

GLTAH

[Flugenbear]

I think long term things are positive, though their short to medium term cash requirements may require searching for funds, depending on how bad sales have been hit. Holding, not buying, but keeping an open mind.....

[Cadalac123]

Yeah analysis of key metrics shows cash and short terms to be 3.46mil, with total current liabilities at 19mil... they have around 14 mil in receivables but I doubt they'll receive that money from buyers anytime soon.. Then you have some burn from the old legacy units and inventories might build up.

I was gutted with the coronovirus because I do really think they were on the right trajectory despite some downrampers. A pretty nice picture of 3 year growth not just focusing on IoT. But I wonder if they'll do a capital raise in the near future for the above.

[nevchev]

Yeah analysis of key metrics shows cash and short terms to be 3.46mil, with total current liabilities at 19mil... they have around 14 mil in receivables but I doubt they'll receive that money from buyers anytime soon.. Then you have some burn from the old legacy units and inventories might build up.

I was gutted with the coronovirus because I do really think they were on the right trajectory despite some downrampers. A pretty nice picture of 3 year growth not just focusing on IoT. But I wonder if they'll do a capital raise in the near future for the above.

I have no worries contributing by way of a CR if funds used constructively and not just paying wagers ect.Have followed WDT for a while and they now seem to have found their groove.glta

[jonu]

I'm interested to hear where holders see this SP settling assuming WDT can operate somewhere near capacity under level 3. Someone raised doubt earlier about them being paid their Receivables...but the food sector is probably the least impacted by the pandemic.

The stock was trading around 15c in late Feb, early March, that being with uncertainty already priced in. On the way back out I figure that is probably somewhere about right.

[Flugenbear]

I'm interested to hear where holders see this SP settling assuming WDT can operate somewhere near capacity under level 3. Someone raised doubt earlier about them being paid their Receivables...but the food sector is probably the least impacted by the pandemic.

The stock was trading around 15c in late Feb, early March, that being with uncertainty already priced in. On the way back out I figure that is probably somewhere about right.

Good question Jonu. Who knows. Personally I see the current share price being about right. Just because of the unknowns. Will Companies defer capital spending on energy efficiency because of the coming recession? I say yes. I see sales drying up big time and receivables taking awhile to receive! My guess is they will need to raise capital within a few months, probably through a share purchase.
Me says 10-12 cents is currently a fair price.
Don't forget their sales are spread far and wide so coming out from level 4 to 3 to 2 will have only limited short term impact. The bigger question will be how deep and long will this world wide recession be.
Deep and long are very real realities, and I am not sure investors have accepted that yet.

[Cadalac123]

Another issue is the declining sales of the legacy motors which have always been legging this company down, I can’t imagine the loss not being worse out of proportion to this segment now