WDT - Wellington Drive Technologies

[Nigel]

Closed at 37c. Phaedrus - what do you make of this, given that you suggested earlier that a close of 36c could be significant? Thoughts appreciated.

[zigzag]

You could call WDT speculative, but you most certainly could not call it a dog. You could say it was expensive, but who knows, that is afterall just a matter of opinion. There does seem to be plenty of investors willing to pay well north of 30c. Me, I think this is a great little Kiwi company that is just starting to wind-up. Zigzag is willing to give it a go!

[Ttops]

Phaedrus. I think your chart needs correcting for the rights issue. Sudden drop from 51 to 39c in May corresponds to this issue. See below. Might make it look more of a sideways trend. since then

I have halved my exposure to WDT mainly due to the current climate taking your "caution advice" as I was too exposed to the NZ market but still believe in the long term principle that motors that save electricity are worth a punt. Will hold the remaining 50% and top up when WDT starts trending up.

Quotation Notice Renounceable Rights (WDTRE)

Further Quotation
Company Name: Wellington Drive Technologies Limited
Prospectus Dated: Proposed to be registered with the registrar of
companies on 17 May
Details of Security to be Quoted: One for Three Renounceable Rights
Issue of up to 76,520,232 Ordinary Shares at NZ 10 cents each
Ratio: 1:3
Issue Price: $0.10 per Ordinary Share
Payable: Payable in full upon application
Dividend Ranking: Pari passu with existing Ordinary Shares
Record Date 5 pm: 18 May 2007
Commence Quoting Rights and Existing ordinary shares quoted "ex-rights" on
the NZX 21 May 2007

Hold ADY FPH NZO WDT LYC TPW NWF KFLWA

[Phaedrus]

Thanks for that Treetops. It is painfully obvious that WDT is not a stock that I follow! Here is the corrected chart :-

[glennj]

You could call WDT speculative, but you most certainly could not call it a dog. You could say it was expensive, but who knows, that is afterall just a matter of opinion. There does seem to be plenty of investors willing to pay well north of 30c. Me, I think this is a great little Kiwi company that is just starting to wind-up. Zigzag is willing to give it a go!

I'm prepared to call it a dog because that is how it has performed. I've watched it quite closely since Jan 2005 & done some research. Result is I didn't buy. If I had bought and then sold rather than taken up the rights issues my annualised return would have been minus 13.5%
Maybe it won't be a dog sometime in the future? Currently it is speculative as you state. Looking from a fundy viewpoint they are making little progress. I'll keep watching and may climb aboard when/if profitability, margins, ps ratios etc show that there is more than hype there.

[Phaedrus]

Closed at 37c. Phaedrus - what do you make of this, given that you suggested earlier that a close of 36c could be significant? Thoughts appreciated.

Nigel, I don't know what I was talking about. WDT has essentially been going sideways in a trading range all this year (plus last year, really). There is little point in looking for, or commenting on, trends lying within this trading range. If you have made an entry just above a recent support level, you have done as much as you can to profit from this stock.

[Ttops]

Not to worry Phaedrus Your efforts are much appreciated as always. WDT attracted me because I have a tendency to let Green concepts sway me like saving electricity. In the water crisis back in 92 30s showers were achieved in our household! Anyway I can't see electricity getting cheaper and the shift to "green" might just make me a profit with WDT one day. I'm also stoically an NZ supporter and can't resist backing NZ companies with something special if the price is right. Appreciate your comments
glennj and can't help but agree its a dog looking at the charts but you obviously see potential or you wouldn't track it. I wonder if I'll see a profit as some overseas manufacturer will see this and snap it up before it reaches critical mass.

[craic]

I would go a stage further than SectorSurfa and say that WDT have a policy of pushing misinformation to the media in the form of "breakthroughs" that invariably turn into fizzers. Our HB Today carried a story of quite a few inches about a breakthrough that was exactly the same message that they have been flogging for years - since Strathmore dumped the company on its shareholders nearly seven years ago. It ran up around 70cps for a time then.

[Ttops]

Every dog has its day.

[kiwi_on_OE]

Phaedrus, did you adjust your graph for the cash issue in Nov 05? I suspect not. 1:4, I think it may have been at 10c, but I'm not sure.

Glennj, going back to your example, presumably you wouldn't have bought in Jan 05 when it started a down trend. If you'd instead bought in late 05 when it got into an uptrend you'd now be sitting on a gain of about 50% if you were still holding. You may have even bailed a year ago for the same gain.