Sssh Nothing to see here
Otherwise W69 will come back and post something about a dividend
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Sssh Nothing to see here
Otherwise W69 will come back and post something about a dividend
Nice one mate
All I know is that profit and dividend aren’t part of Wellington’s vocabulary .....and never been part of company DNA
But this time it’s different I read on another thread
Looking forward to adding another Wellington Drive Annual Report to my collection - they go back to last century.
With over 35 years of being a serial under performer I too hope "this time it is different."
Winner if you read your 2019 copy of the annual report on page 18 you find that WDT made a small profit of $448k however I see your point as historically losses were far more common.
I think one should not underestimate the acting chair John McMahon. He is also the Chair of an other small NZX company SDL.
Under his leadership SDL turned around from an loss making non dividend paying sad company to a healthy company growing compounding Equity/Sh around 20% for the last 8 years while paying a respectable app 4% gross dividend. Naturally SDL share price multiplied a few time during this period.
WDT is growing the internet of things part of their business, as Price to Revenue is likely close to 1 this year I think the share price is not expensive and I am not surprised by the SP rise on volume. Possible turnaround story I think.
Ah ha Percy
The past is not always a good predictor of the future
Correct.
But 35 years?
Now.Yes I really do hope it is a turn around.
And I own up to owning WDT 35 odd years ago.Think it had just changed its name to Aorangi,and I had high hopes;
A literal translation of Aorangi leaves one the choice of any of three equivalents— “Light of Heaven,” “World in the Sky,” or “Cloud of Heaven,” each of which is descriptively appropriate. ...[I thought it was "World in the Sky."
Then we went to Wellington Drive,and then Cadac before returning to WDT.Think that is the correct order.
Internet of things and new directors could be right.I note their chart for 3 months is positive.[Very different for any longer period]
Perhaps a change of name back to Aorangi may be in order ?"Cloud of Heaven" would fit with Internet of things.?.
Yep certainly a different company to ALL others.
Unlike others I have never owned them before
I can't name any other company that has lasted so long without making a profit
Just a dabble for me
We will see if WDT have a raison d'etre
WDT are probably doing the IoT stuff well - just as they did all the past new tech fads. Keeps them in the game
It just seems that WDT is the unluckiest company on the NZX - just as the story gets good some bad luck puts an end to it and they need to start over again.
Then again that run of bad luck may have ended and they have finally found their Midas touch
Alarm Bells having been ringing with my Syft shareholding.
Recent appointments;
Vice President of Sales Europe,Arnd Ingendoh
Vice President of Product Development,Rose Smith
Vice President of Sales USA,Damien Fischer
Vice President of Sales-Semi Conductors,Reid Poole.
And the market cap of Syft is $58mil.????????????????????//
Hmmm...someone wants $1,000.00 per share for their parcel of 13,093 WDT shares. Or you can buy another 14,651 shares for $19.95 each.
Good to see the growth, finally back in positive territory for me today, may it long continue.
All credit due to Keith Oliver whose only been on the Board for a short time
Also on Rakon board .....brought the Midas Touch to both companies
Important senior appointments include in their credentials whether they are lucky ...have the Midas touch.
Shareprice over 10 cents ...heading to 20 cents
One of the stars of the NZX (as is Rakon)
I’m out. it’s been a fun ride, to nowhere...
Share price enquiry today, awaiting the stock standard reply.
That response from WDT to speeding ticket will be seen as a profit upgrade coming in next week or two.
Cool
Maybe EAST WEST CORPORATION are increasing their holding?....averaging down from the 26c they initially paid! (think I've got that right)
whose been playing around today ---- high 10.8 and low 9.3 and ends up somewhere where it started
For those questioning the improving share price, take a look at this October '20 announcement from WDT.
"Wellington Signs Commercial Agreement with Imbera for Supply of IoT hardware and
Data Services."
The key lies in googling "Imbera".
Take a look at the following information from Wikipedia which leads straight to Coca Cola.
Coca-Cola FEMSA
FEMSA owns 47.9% of the world's largest bottler of Coca-Cola by volume, Coca-Cola FEMSA, S.A. de C.V. (NYSE: KOF), which operates in ten countries covering the metropolitan area of Mexico City, southeast Mexico, Central America and South America.
Coca-Cola FEMSA is the anchor bottler of Coca-Cola and its related soft drink products in much of Latin America. The company is an important part of the Coca-Cola System. Coca-Cola FEMSA distributes about 10% of the worldwide production of Coca-Cola products. This makes it, after Coca-Cola Enterprises the second largest Coca-Cola bottler in the world.
The company is owned 47.9% by FEMSA, 28.1% by The Coca-Cola Company and the remaining interest trades on the New York Stock Exchange and the Mexico City Stock Exchange.[7] The company is headquartered in Monterrey."
FEMSA Negocios Estratégicos is divided into 4 business units of which Imbera is one.
In that Oct '20 post the departing CEO (Greg Allen) noted the considerable upside from the commercial agreement with Imbera.
In my view over the last few years WDT has done everything right.
The pandemic hit them extremely hard but the upside remains.
I have been an investor in WDT for a very long time & in recent years attended a number of AGMs.
Current management strikes me as excellent although the hunt for a replacement CEO is an unknown.
Existing management are significant shareholders. So are the board.
I added significantly to my shareholding just before the pandemic so my timing could not have been worse, but added recently at 7 cents to average down.
Breakeven now about 10 cents per share.
I am pleased to be a shareholder in WDT and anticipate being in for the long haul.
Yes Felonius. WDT have a big contact in Coca Cola, for years they have been selling fan motors for their refrigerators (they still do) on very small margins.
They realise this was a losing business model and are now upselling refrigerating cabinets with internet of things hardware.
As I understand it they make a margin on the hardware as well as more importantly on the data collected.
It is early days however at todays Share Price of close to 1 to Revenue it is worth time to keep an eye on if not a purchase I think.
Really looking forward to an announcement next week :)
Or to market for some more $$? Must be drying up by now?
Would some clever person(s) clarify whether WDT will have a role to play in logistical aspects of transporting vaccine around, given that they need to be stored at certain cooler temperature?
Pretty solid trading update and pleased to see Q4 ending Dec'20 finished strongly. Onwards and upwards from hereon..
Suppose this is onwards and upwards -
Wellington’s current US dollar revenue forecast for 2021 is in the range US$37m to US$42m. The higher end
of that range would be in line with 2019 and approximately 75% ahead of 2020. Q1 2021 revenue is forecast
to be approximately US$11-12m compared to US$10.4m in Q1 2020, and a sequential improvement from
Q4 2020 of US$7.1m.
With 2021 US dollar revenue in this range, the Company is targeting EBITDA earnings of around NZ$2.0-
2.5m which would deliver a modest pre-tax loss. Forecasts have been prepared at a 0.70 US$/NZ$
exchange rate and are sensitive to the US$/NZ$ exchange rate (i.e. each 1c movement has an estimated
$0.2m impact on EBITDA).
Slipping away now ahead of results to be released tomorrow, someone knows bit more than others?
Earnings upgrade
https://www.nzx.com/announcements/368082
I see that as good news, why the sell off over the last week? People assuming the worst! Hopefully it will gain a bit of traction from here over 10c.
I thought the rule of thumb was 'updates in three'
Looking back through the market releases:
- today's FY 2021 forecast upgrade
- 28 Jan Q4 results better
- 28 Oct Q3 results worse
So this means ...
Nothing more than a test for the rule of three thumbs.
The FY 2020 revenue results are for all to see in the 28 Jan announcement. They're not good but trending up through the Qs. This preannouncement won't stop the running for the hills.
I liked this bit
"US medical cooler customer provided steady demand and the European
supermarket motors business continued relatively normally"
It would have been better if it was increased demand
And this bit
"Company launches four new
products in the IoT and motor space. Wellington will also commence the first volume shipments for Imbera
Cooling IoT solutions partnership and will continue progressing initiatives to expand the Connect IoT range
beyond its core ‘bottle cooler’ market segment. It is anticipated that these developments will provide the
opportunity to deliver additional revenue streams in 2021 "
https://stocknessmonster.com/announc...dt.nzx-368291/
New IoT product launch announced, and three more launches planned for 2021.
"The Wellington Connect IoT platform has seen phenomenal success, with over one million units shipped to 50 customer organisations across 24 countries."
http://www.sharechat.co.nz/article/3...+29+March+2021
It is very counter-intuitive, but I wonder if WDT should consider paying a dividend?
A dividend of 0.1 cents on 431m shares would cost $431k by my maths, and .2 cents would be $862k. Cash flow from operating activities were +$340k for 2020, and +$2987 for 2019. Gross revenue was $37m in 2020 and $62m in 2019. All figures from my reading of recently released results.
So why do it? Well, a PE of 70 is hardly pushing the boat out considering the growth WDT keeps managing. So a dividend of .1 cents would justify a share price of 7 cents, and 0.2 would justify 14 cents. The company recently did a rights issue at 5 cents (which I was happy to take up).
Without a dividend, the share price is just whatever the market last made up and it bounces around a lot. But put out a dividend and there is some sort of underpinning of the price finally? That might place the company in a stronger position to raise cash if it wanted to?
Just a thought. Counter-intuitive, as I say.
ps. Yes, I do realise that PE is not theoretically based on dividend. But is that really how the real world works when there has been no dividend to date?
Interesting thought Simla, though I suspect paying a dividend now would be seen as a little irresponsible and misleading.
As a shareholder I wouldn't be too impressed, as much as I would like a return from this one!
Great update from WDT
http://nzx-prod-s7fsd7f98s.s3-websit...338/345001.pdf
Return to profit sounds good, till you read deeper.
Only half a million NPAT for the quarter, on a $36M CAP @8.5c
GP down 7%
EBITDA -31.3%
Forecast only breakeven, and tempered with warning about shipping & supply chain issues.
Be very cautious.
All when compared with a quarter not significantly impacted by Covid.
This is what gives me reason for enthusiasm
“Wellington has had a great quarter with strong trading, a big increase in our forward order position and a
successful reception for the first two of the four new products we are launching this year. We are now
expecting record US$ revenue for the year. Even more significantly, our core growth products – our
Connect IOT solution and our ECR 2 motor series - are expected to grow in US$ revenue terms by 15-20%
over our previous record performance in 2019 –prior to the COVID impacted downturn in 2020. Wellington
is not just recovering – we believe we are back onto a solid medium-term growth path, driven by market
share gains from our core growth products.”
“2021 is expected to be a pivotal year for Wellington’s medium-term strategy to lift growth and improve
profitability. The successful launch of our 4 new products will allow us to take our Connect IoT solution into
new, higher-value market segments as well as positioning us for growth with existing IoT customers via
retrofit and upgrade sales cycles. While our forecast includes some small contributions from these
products in 2021 – they will mainly be part of our 2022 and beyond performance.”
“
At a superficial glance, probably not, if they just keep doing what they are. in response to #1263
They survived Covid. They have built some new products to drive revenue growth and margins. The future looks bright. Pretty good result all things considered.
For anyone who likes a bit of white on white on white action... https://www.youtube.com/watch?v=MInn4iH4xVc
Maybe their luck has changed
After decades of ‘bad luck’ they deserve some good luck
e good if that was the case
Bit of a worry when they tout 'return to profitability' but in same announcement that they will likely make a loss this year (they say break even at USD0.70 ...hmmm)
The bad luck still continues - latest bit of bad luck being seeing cost and supply chain pressures
Hope global shortage of chips is not going to affect them and be their next bit of bad luck
Hope they appoint a lucky CEO
My morbid fascination with WDT that has lasted 20 year or so continues
No doubt the share price will go to 10 cents soon
Resistance at 9 appears to be wilting, and the chart backs it up nicely. Next resistance?
A big rave about Wellington in the business press
Mentions $100m turnover in 2023
Is being valued as a tech company the catalyst for a decent rise in share price over the next year or so - $100m revenues could mean $1 billion market cap or share price over 2 bucks
Wellington Drive’s journey from manufacturing to tech
https://businessdesk.co.nz/article/o...turing-to-tech
When I see it I believe it. WDT doesn't have exactly a great track record in creating value for shareholders. I was one back in 1999 and can't remember for how long. Also every company I briefly glance at in the IoT sector seems to come with those lofty ambitions that just don't seem to get any traction. Why would I need a fridge with Internet connectivity? Smart light bulbs? Why? Maybe I'm an old man yelling at a cloud but then looking at companies like BUD.ASX makes me very wary in investing in such companies.
A quick look at the website would have taught me that look at commercial solution - my bad. I just have this bad taste in my mouth with this company that in its history has nothing to show for in creating shareholder value. I may have to do more research while this global chip shortage is playing out.
Shades of Rakon a year ago
And that is were their major shareholder may significantly help
"Help, my current supply chain is at risk.
Problem: I need to find an alternative source, or diversify my current supply chain.
Solution: Once you hit critical mass, you should never put all your eggs in one basket. Diversifying your supply chain can help protect against increasing wages, raw material unavailability, labor strikes, supply chain disruption, currency fluctuation, increasing taxes, rising fuel costs, and a host of unknowns. When you partner with East West for your manufacturing needs, you will save time and money but most importantly, you get the advantage of our diverse manufacturing base.
With our multiple operations in the United States, Costa Rica, and Asia, we can diversify your supply chain with one supplier, one company, one point of contact. We can guide you through NPI with smaller volume production locally, and then balance out larger production volume in Costa Rica or Asia, helping you achieve scale and reducing your risk."
https://app.companiesoffice.govt.nz/.../shareholdings
https://www.ewmfg.com/about/problems-we-solve/
And that is were their major shareholder may significantly help
"Help, my current supply chain is at risk.
Problem: I need to find an alternative source, or diversify my current supply chain.
Solution: Once you hit critical mass, you should never put all your eggs in one basket. Diversifying your supply chain can help protect against increasing wages, raw material unavailability, labor strikes, supply chain disruption, currency fluctuation, increasing taxes, rising fuel costs, and a host of unknowns. When you partner with East West for your manufacturing needs, you will save time and money but most importantly, you get the advantage of our diverse manufacturing base.
With our multiple operations in the United States, Costa Rica, and Asia, we can diversify your supply chain with one supplier, one company, one point of contact. We can guide you through NPI with smaller volume production locally, and then balance out larger production volume in Costa Rica or Asia, helping you achieve scale and reducing your risk."
https://app.companiesoffice.govt.nz/.../shareholdings
https://www.ewmfg.com/about/problems-we-solve/
Seems WDT has settled above 9 but is reluctant to push on through to 10 despite bugger all depth to hold it back.
Winner tells us 10ish is next resistance. Listen up WDT!
Appointed new CEO, Greg Balla from Orion Health
I saw a picture of Jacinda Ardern as a related page on LinkedIn ...thats good
New CEO quite some incentive to stay and keep SP up
https://www.nzx.com/announcements/371822
WDT still struggling to break the shackles of 9.
One would hope some of those exiting ATM today might consider something with plenty of upside.
Like NTL Jonu?
Seems to have been a bit of a shakeout yesterday. Depth would suggest a push to above 9 again. Frustrating. I bought a whack at 8.4 so not uncomfortable yet!
Well well Wellington....the market continues to be unenthused. I still maintain it's good value at anything under 10, especially when compared to many stocks across the NZX.
It's one of those Companies you need a lot if patience with....but I agree, I think it's a buy at the moment.
Heard a whisper through a contact close to company, that apparently things are pumping at Wellington. Pls DYOR, eagerly waiting for their update at ASM on Wed 26 May.
It wouldn't surprise me one bit. But I think a lot of it is covid catch up. The last update was pretty good, but not as spectacular as I had hoped. Perhaps it will continue as the year progresses.....
Sales going gangbusters …going to be 10% more than expected
All looking good for next few years …and beyond
http://nzx-prod-s7fsd7f98s.s3-websit...588/349041.pdf