WDT - Wellington Drive Technologies

[Nevl]

I know I expect only one major announcement. They said there would be several at the agm and since then we have had a couple. Still it is just one major order that I expect ie more than 10000 motors per month. I would love to see more but am not that hopefull. Still the moves to raise more cash suggest that by year end some very substantial orders may arrive. Still i expect the first half of the year to be very quiet.

[Codfish]

It looks like ACC just bought 7m WDT at 38c to go over the 5% threshold.

Are there any NZ stocks which ACC don't hold?

[emearg]

It looks like ACC just bought 7m WDT at 38c to go over the 5% threshold.

Are there any NZ stocks which ACC don't hold?

Their SSH says they bought 4,229,595 yesterday.

Compared to the number they held on the 28th August 2006 they have increased their holding almost five-fold in less than 18 months.

Regarding your next point I would say they don't have shares in lots of NZ stocks. I would be interested in knowing how many other "startups" they hold to get an idea of their risk profile.

[craic]

Startup?? WDT is all of seven or more years old. I sold out before I retired over five years ago at around 50% obove the current price.

[winner69]

Their SSH says they bought 4,229,595 yesterday.


Regarding your next point I would say they don't have shares in lots of NZ stocks. I would be interested in knowing how many other "startups" they hold to get an idea of their risk profile.

ACC is one of NZs biggest 'fund managers' with over $9billion to invest

Some $1.1 billion is in NZ equities ...... which means they probably have some shares in most stocks

They also have $57 million invested in NZ private equity - less tha 1% of funds under management

Need to be a very conservative investor .... so take afew punts but spread the money around. A large %age is invested in bonds

[emearg]

Startup?? WDT is all of seven or more years old. I sold out before I retired over five years ago at around 50% obove the current price.

I used the term startup in terms of where they are at in terms of commercialising their products rather than age. Perhaps I use the term incorrectly? Having said that Jenny Ruth in her article in October used the same term so at least I am in good company :-)

Moving on...does your 50% comment take into account all the rights issues since you sold?

Even after asking that last question I concur that you may be better off having sold them five years ago. Personally I have bought and sold WDT several times over the last year or three. Now though, I have bought with a view of holding long term.

The difference between five, three or two years ago is that they are now selling their EC motors in increasing volumes. Previously, their AirMovent line helped boost the number of motors they could say they had sold but it didn't impress me much. But now they are selling their EC motors I am rapidly becoming more impressed.

I am of the opinion that the market is now demanding products such as theirs, and that demand is growing rapidly. Their commentary says they have the advantage of being able to produce EC motors at competitive prices (given adequate volumes). It would appear this is something their competition isn't capable of.

As I see it their number one priority should be to become the dominant producer of FHP EC motors. Their focus on growing sales as rapidly as possible rather than continuing on at a snails pace is the right move. Profit isn't important in the short term as long as the financial backing continues, and it shows absolutely no sign of weakening. I am thinking that by the time they announce first half results they will have lost a total of approximately $40,000,000 since their inception. Considering where they have gotten to this would be considered milk money in most of the world's stock markets.

Time will tell of course, but given their growing backing by institutions I conclude I'm not the only one thinking this company is a good one to own a slice of.

[JMKC]

Their SSH says they bought 4,229,595 yesterday.

Compared to the number they held on the 28th August 2006 they have increased their holding almost five-fold in less than 18 months.

Regarding your next point I would say they don't have shares in lots of NZ stocks. I would be interested in knowing how many other "startups" they hold to get an idea of their risk profile.

The ACC hold positions in nearly all coys listed on the NZX. Both large and small caps.

[mondograss]

Quite a healthy turnover today (1.5m). Is there an announcement due or something?

[Nevl]

not a bad report though of course the market didn't like it. Still 5 total integration projects to be confirmed over the next year which is great. Lets say 1mill units each add another mill for the other customers there could be 6 mill units a year by 2010. Given a price of around $20 a unit that is $120mill per year. Would like some price confirmation from WDT but I think it is not too far gone when comparing revenue with announced sales. Could be more than 6mill units as well so looking forward to 2009. Nothing I read would convince me to stop my accumulation over the next 12 months.

[emearg]

The presentation released today titled "Saving Generation for the Next Generation" didn't contain a lot of new information for anyone who have been following this company and the slow but inevitable trend towards developing ways to waste less electricity rather than just building more power plants to power inefficient products

One point I found interesting is that they are planning on taking their sales team from 20 in December 2007 to a planned 80 by December 2009. Considering how much the original small team (which were much fewer than 20 until quite recently) have achieved with sales and engineering contracts one can only wonder how much a team of 80 can achieve? Clearly the market place is becoming more ready by the day for products of this nature, and WDT have a competitive advantage with the size, weight, quietness, cost and potentially most importantly the fact they can tailor their products to a customers needs. That last point is completely unheard of in this industry.

What is uncertain is will WDT be able to keep up with the demand (they claim they are structuring production and distribution to be very scalable) and much more importantly once they reach the sales volumes they need will they actually be able to make a profit out of their products? They say yes.

Considering the big institutions backing them it seems reasonable to assume us little investors aren't being played for fools. It is also comforting to see the chairman buying up this stock with his own cash over the past year or two. He now owns almost 700,000 of them. That is a pretty big commitment. Maybe he knows more than we do? Or maybe because he is so close the wool has been pulled over his eyes?