WDT, WELLINGTON DRIVE TECHNOLOGIES LIMITED

[Commander C]

In Reply To: Ekman's post @ May 17 2010, 04:17 PM

wonder what revenue it needs to earn to make a profit!

[Ekman]

In Reply To: Ekman's post @ Mar 1 2009, 04:34 PM

Good announcement today with a new distributor agrement in USA. We may at last see some traction

[Ekman]

In Reply To: ShareScene.com's post @ Feb 3 2009, 10:00 AM

What will happen now. The rights issue has closed. Money in the bank? Expanding sales efforts. Manufacturing sites in place. Searching for a cornerstone shareholder.

[ShareScene.com]

Company:
WELLINGTON DRIVE TECHNOLOGIES LIMITED

Code:
WDT

Website
http://www.wdtl.com/

[Lizard]

Great AGM speech.

All looks steadily on track and I think probably a good story to buy into. Would love to get it below 30cps - keep hoping for another general market push down to send it where I want it. NZX50 bouncing off the old low today though, so going to keep me playing statues for a little longer.

With the "400,000 order" customer due to launch next week, perhaps we get to hear a customer name then too...

I believe this company is going to be a great long term investment, but my only worry is the extent to which they may need more capital to pay the cost of the fast growth need to capture a demanding market. (Still wonder if there is an investment to be found in the early adopter appliance companies as they come to light.)

[Lizard]

Chart seems to be sending out a few positive signals of late. Might be worth buying more if we get another pullback.

[Lizard]

WDT seems to have been listed on the NZX practically forever, a perennial capital-raiser for whom hopes of success have waxed and waned over the years. However, despite the slowness, the strategy has remained on track and progress does appear to be being made in their high-efficiency motors. While profitability isn't expected until 2009, it does seem that forecasts for 2011 could justify the current share price, with plenty of upside.

With the number of large "total integration" projects which look to have a good chance of success, the eventual roll-out is starting to look more of an inevitability. The plans presented in the recent WDT presentation make a convincing case for the company (e-mail the nzx for a copy). However, while the current share price looks cheap against the 2011 figures provided, there remains execution risk.

I have a small position as a long term speculative hold and believe the risk/return is starting to make good sense at current prices (i.e. risk of 100%+ gain in 3 years looks higher than risk of 100% loss) and, over the long term, should be relatively less affected by world markets.