Yeah, looks pretty solid. Hopefully 2021 is the year reckoning for them and shareholders.
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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.