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afternoon all. Glad PF responded to Q and the tone was similar to my response from Peter. We just don't get what he is trying to build and are fixated on share price, therefore he does not want to share our air as we quite clearly are not sophisticated enough investors to understand his vision for global domination. Interesting he pushed back on the market reaction to finance "more buys than sells"...….. Peter we have dropped 30% in 2 weeks mate..... and that 2.3m sell seems "in the know" compared to the current selling price. Equally the 31st Jan has been added to the calendar, wasn't there last week. He is actually making it up as he goes. I am one [like Tosh] who writes to Pete regularly and since my fist reply he has ignored me, maybe because I challenged his achievements as I measure shareholder value by outcomes....ie sp [low] , MSCs [one signed in 7 years] and dividends [none], he measures success by inputs and near misses …… we have a long way to go. I suspect we will get good news next Friday but it will be underwhelming in its impact on sp unless it contains meaningful data. off out to wash the Tema mouse and look for the SQ on my "where's wally" map...…… imo of course. B
Aiming Thanks for your shared analysis of future prospects
I find the description of wsg as a growth company incongruous, sustained as it is sustained by one off tech contracts in various parts of the world difficult to sustain for such a small outfit. Their focus now also seems weighted to provision of training possibly a good idea in third world countries developing homegrown expertise
Your Tema MSC prediction may be correct but it will be dependent on performance, length of contract etc. Their remit is small- training and machine maintenance- and big new contracts surely require an excellent reputation in more than that
I like your optimism re KSA and unknown Africa airport- I will not comment further
My My initial point was greater analysis of where the revenues are been spent- I am unable to decipher financial statements- then we could challenge fowler on specifics- otherwise you get bland reassuring replies as per yesterday
Vander: I suspect, like many companies, they are prioritising growth over profit. They spend a lot on acquisition of new business, sadly that hasn’t produced many results yet. With Tema and a KSA contract the investment could look like it was very well spent.
I haven’t got my model to hand so not going to hazard a guess at revenues or profits....but to be honest the specifics aren’t important. It’s sentiment that’s blown the share price (and tbh quite understandably). A Tema signing will be a huge boost for confidence. A KSA or the Africa contract on top could really get this motoring. People want to know that PF can actually close a long term deal. After that I think focus moves more to profit etc
I appreciate that I was complaining that he focuses on revenue rather than profit and then just said that profit wasn’t so important currently....but my issue is that he seems to think that increased revenue means they all need a pat on the back.....this would be fine it it hadn’t come at the expense of massive dilution.
Sorry. I didn’t bother taking time with my reply. Apologies.
All imo off out to take the kids swimming.
Aiming you raise some excellent points though these are perennial
Why do they not generate profit despite the aforementioned revenue? Poor cost management? What would be the expected revenue and profit from the Asian ports project? Or Tema etc
Take your time on reply- it’s a key point
AIMing, my sentiments exactly.
Bottoms up!
Off out to bed imo
Thanks for posting the emails Qualia.
Positives:
- the Jan update (didn’t used to be on the financial calendar).
- PF still seems bullish about the Tema deal
- PF still happy to respond to PIs
Negatives:
- Still seems a little confused as to why investors would be so miffed
- Shows absolutely no comprehension of how damaging and frustrating these fund raisings are.
- doesn’t realise that the $3.4m deal was great....but directly resulted in an equity raise...yet subsequently didn’t provide enough cash to avoid a further raise!
- still focussed on revenue with no regard for profit.
As this drags on it doesn’t make me any more likely to bail pre Tema.....just makes me less likely to keep faith once im back in profit and there are other pipeline promises being made.
All IMO. Off out to have a whiskey and a bed
Not sure what the overlap was with the old port and no idea on H1 I thought
they phased the old port out sharpish
Numbers up on 2018 Bigears, but (i) how much of that 5% was in H1 as opposed to H2 (no one know if it was or wasn't) and (ii) weren't containers still going though the old part of the port whilst in start up mode?
Hit the ground running , numbers were up !
The scanning was in start up phase!
Interesting to hear PF reiterate his 19th Dec“ several hundred thousand “ number whilst implying the port was in start up phase when we know the numbers were up 5% on 2018 .....50% of said numbers being on our watch ..........|o:
FYI https://www.wsg-corporate.com/investor-relations/financial-calendar/
Well here it is. Should be 31 January then...
---
Dear X,
Thank you for your email.
I hear your frustration and I am sorry if your current holding is underwater.
However I can assure you no-one here and certainly not me is ‘stringing anyone along’. The Tema project is up and working, very successfully and is generating revenue - several hundred thousand £ over just a few months in a start-up phase on a long term project that is still in the expansion stage and has large growth ahead, is hardly to be scoffed at! It is obvious that it takes a while for capacity to build and systems to bed down - as anyone can see if they look online the third berth was still under construction late last year and the fourth berth is due for competition by the end of 2020.
We have also given positive news on a number of other issues - the $3.4million contract last year for the provision of advanced container screening solutions to two separate ports in an Asian country as an example, not an insignificant contract by anyone’s standards, so I do not accept that there has been no good news in the market, despite what some detractors might suggest.
The financing package announced yesterday may have been poorly received by some people, as you indicate, but the fact is there were more buys than sells in the market over the last two days and actually the deal was a sensible one that should benefit the Company if looked at dispassionately and the fact we have started to pay down the CLNs is also very positive step.
To answer your question on a update you will recall we did update the market just before Christmas and you will see on our financial calendar that we are issuing a Trading Update and Notice of Results on 31 January 2020
I do of course understand the concerns of shareholders whose holding may be below the current SP and I understand they may wish to vent their frustration at times even when criticism misplaced or based on incorrect assumptions, which is why I do endeavour to try and respond, where possible, to genuine and civil correspondence.
Kind regards
Peter Fowler
Dear Peter Fowler,
I have over £X invested in WSG since April 2018 and now have little to show for it. Last summer when you announced the Tema work it finally looked as though we actually had another contact in the bag. Now you have stated that signing the contract is merely a formality and there is no knowing how long we will be strung along (yet again) waiting for official politics around the port to be resolved before any actual contract signing. Meanwhile interest in this venture seems to have become stale, and the reported revenues from Tema (several hundreds of thousands) falling short of expectations for many investors has probably not helped.
The market, expectant of the ‘transformational’ contract news on Tema (and ever hopeful of ANY other MSC for that matter) reacted poorly to the latest financing rearrangement RNS, and the share price is back at barely nominal, yet again, and looking to weaken to sub-nominal if there is no positive news very imminent.
I sincerely hope that you will be releasing the usual January update with some ‘good’ news for the market, patience is wearing thin all around.
(Apologies for the tone of this email, I fear frustration is getting the better of me).
Regards,
X