WDT - Wellington Drive Technologies

[janner]

Posted 19-12-2005.
Maybe time to consider another new thread.!!

A new thread ??.. Most share holders over the years have been left " Thread Bare "..

[Anna Naum]

A new thread ??.. Most share holders over the years have been left " Thread Bare "..

Yes it would seem I was a long time before the right time......but a new CEO and delivery of promises goes a long way towards regaining my trust and belief.

[janner]

Yes it would seem I was a long time before the right time......but a new CEO and delivery of promises goes a long way towards regaining my trust and belief.

The world has a greater need of people like yourself Anna.. Than cynics like me..

Will wait until a definite up trend is confirmed ..

[Balance]

Yes it would seem I was a long time before the right time......but a new CEO and delivery of promises goes a long way towards regaining my trust and belief.

Time to take off the Ross Green garlic repellant.

[janner]

Time to take off the Ross Green garlic repellant.

Is that a statement or question Balance ??

[percy]

Looking at a chart and the 50 day and 200 day moving averages and the MACD ,WDT could be showing buy signals.
Number of shares on issue has increased to just over 126mil shares and at 18.7cents the market cap is now approx. $23.56 mil.
Turnover [from the half year report] is expected to be approx. $30mil to $34mil with gross margin of between 18% to 20%.
So still a very small company, with modest turnover spread over a lot of countries.
The financial returns are still negative, with a projected loss of under $3mil this year and POSSIBLE positive EBITDA in 2014.

[Balance]

Is that a statement or question Balance ??

Must be totally frank and state I find Ross Green a total turn off as far as investing in WDT is concerned.

I sat in on a presentation by him over 10 years ago and he half convinced me until he held up his hands and asked for more capital - as profitability was just around the corner! SP then would have been the equivalent of over $15.00! He was a master at raising funds to keep the company going. The fund managers fell for the 'profitability' is around the corner talk.

So I never take much heed of when the fund managers hand over more money to him and WDT.

BUT -----

East West Manufacturing handing over new capital and forming a strategic alliance - I take note!

Could be real turning point.

[Anna Naum]

****************************

To me, announcement of East West Manufacturing as a Strategic Partner is however an important development.

Here we have an established industry player forming a partnership with WDT and putting money in. Presumably East West has done comprehensive real in depth due diligence (with real expertise) before doing the deal. I pay no heed to fund managers like Hunter Hall or SuperLife putting money into WDT - they are fund managers and playing the odds with other people's money.

So, time to dip the toe in?[/QUOTE]

Balance, the fact that Greg Allen has managed to get margins from -ve to circa 20% and an international investor is worth a few points.
While the RG years are a disappointment I still feel Greg is 'the real deal' and now has this company facing in the right direction.

[Flugenbear]

• Commercial Refrigeration revenue for Q3 was $4.7m, $0.9m less than the $5.7m

recorded in Q3 2012 (excluding Ventilation revenues). Q3 is the company’s

seasonally weakest quarter and that seasonality was worse than 2012;

• Gross Margin increased to 23%, a further improvement over the 17% in the first half

of 2013 and the 2012 margin of 14%. This result was delivered through higher

margin product mix and further flow-through of existing supplier cost reductions;

• Net Profit after Tax (“NPAT”) for the period was a loss of $970,000;

• Earnings before Interest, Tax, Depreciation and Amortisation (“EBITDA”) was a loss

for the period was $841,000;

• Earnings before Interest and Tax (“EBIT”) for the period was a loss of $969,000;

• Progress in the five main priorities for 2013, which have resulted in;

o Announcement of strategic partnership with East West Manufacturing;

o Launch of new FanPack product and a low power EC Motor variant;

o Investing in Asia growth with a new Sales Director based in Shanghai, China.

A little disappointing to see the drop in sales, but more importantly margins continue heading in the right direction which has been more the focus. There's not a lot of point having growth if you aren't making money on what you sell.
On the whole I think WDT continue heading in the right direction and will be one to watch.

[Anna Naum]

So given they have said $30-$33m FY sales that means $8m plus sales at the $30m level for Q4 and they confirmed margins in Q4 of approx 23-25% means near to an actual b/e result for Q4, a good place to be going into 2014.

Snapiti if you have time, what were you expecting given they have said all year a loss of less than $3m for 2013, 18-20% margins and sales of $30-$33m all of which were confirmed today.