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Thanks for this.
I think the company really does need to address this directly in their presentations.
If leakbot is superior we will see lots of deployment. I am going to wait for some confirmation.
The point made on the last placing is not uncommon. New broker appointed.. check the cash position.
Here are two potential disadvantages to using smart water meters:
Low mobile signal affects performance: Some smart water meters communicate through mobile networks. If the area has a low mobile signal, this could affect data transfer to the service provider.
Not yet supported by all service providers: As of now, not all utility companies and municipalities, the world-over, are able to support smart water meters.
CHALLENGES IN SMART WATER METERING
Although there are many benefits and opportunities the smart metering delivers, the adoption is very slow due to high costs, technology limitations, regulatory frameworks, and others.
Major drawbacks include;
High deployment and maintenance costs
Lack of sufficient infrastructure to support smart metering
Lack of skills
Interoperability issues
Weak communication signals in some locations
Power cabling challenges in confined and remote locations
Limited network reach
Despite the benefits of wireless technologies, there could be a few challenges, especially with meters installed in the basements or locations with weak signals. Also, the lack of compatible devices is a challenge if existing wired or wireless infrastructure does not support the transmission technologies
Just some of the disadvantages to be overcome for smart meters
Thanks for the post. I am not trying to put down the business just highlight potential explanations for price declines.
Companies short of cash are getting hammered so just looking at the story and ignoring the balance sheet is dangerous.
If i saw big orders coming in yup.i would jump all over this stock. But with a shortage of capital i feel there is no rush to get in.
On a positive note. If they get traction even for few years they have a massive opportunity which dwarfs the share price.
I think this is my key worry.
Water companies want smart meters, if they can do even a 70pct replication of leakbot that is enough.
Someone will run an algorithm over the data and the companies will not need to be bothered with additional devices.
Ondo really need to address the competition item head on. Especially if a company they work with are saying they have a better idea
Just one example below of more competition for Ondo. 👇
‘H2know takes measurements from your pipe every second and uses our patented technology and machine learning approach to translate those signals to accurate water flow estimates, leak alerts, and water insights.’
https://conservationlabs.com/
- No plumber & no pipe cutting required
- Significant Investors & Insurance Partners
- US based with recent $7.5 million funding
With regards to your point on Smart Meters – you may find the below interesting 👇
Smart meters, AI and a saturated market
It appears that Ondo may suffer from the ‘law of unintended consequences.’
Portsmouth Water Business Plan 2025 to 2030
Benefits of a smart metering programme…
… ‘We’ve opened a dialogue with insurance companies, some of whom already offer leak detection devices (such as the ‘Leakbot’ already mentioned) in return for lower household insurance premia. Smart meters would perform a similar function, avoiding the need for new devices.’
https://www.portsmouthwater.co.uk/downloads/pr24/PRT01-excellence-in-water-always.pdf
So Portsmouth Water are now looking into marketing Smart Meters to Ondo’s core insurance market, as a potential alternative to Ondo’s Leakbot.
Obviously, Leakbot and Smart Meters are different devices. In my opinion, Leakbot offers a far superior service and benefit to households in water leak prevention.
However, your average retail householder won’t know the difference and won’t be bothered, providing they think a (any) device detects leaks and it saves them money on their home insurance.
(Just google ‘water leak detection devices’ and look at the products list. There are thousands out there!)
IMHO
The current position 👇
The last reported official Operating Expenses were running at circa £316,000 a MONTH up to the 6 month period ending Sept’23.
The latest trading update didn’t provide either operating expenses or liabilities, only the 0.4m in cash and a further account receivable of 0.4m.
Using a conservative monthly operating expense of c.£150,000 – that would mean the kitty could run dry in circa 5 months time!
We’ve all witnessed a number of savage share price declines, involving capital raises in the current market e.g. AVCT.
In fact, similar to ONDO’s price action - AVCT’s share price also crashed by circa 45% over a three month period (Dec ’23 – Feb ’24), subsequently falling a further 40% to date, after the placing occurred.
Price action matters – the market is telling you the direction of travel.
Do ONDO need the cash right now – maybe not.
Will they need it in the short term before their backs are against the wall – probably?
IMHO
GM – I agree. A placing might be sooner than you think!
This is what happened last time 👇
1. On the 301023, ONDO RNS’d the appointment of Dowgate Capital as a new company broker.
Questions were subsequently raised on social media regarding a possible placing. A number of commentators were adamant that it wouldn’t happen (including on this site)!
2. Three weeks after this date, the company reported having circa 0.5m cash (ending Sept ’23).
In a video presentation CF was asked directly , if the company was going to conduct a placing. He attempted to reassure shareholders stating:
“We aren’t interested in diluting our share holdings or your share holdings…we might need to raise money in the next 12 MONTH period.”
3. Only 9 days later, ONDO announced a placing was taking place with Dowgate Capital as sole broker.
Did CF know about the planned capital raise already and was he honest in responding to the placing question – I’ll let you decide?