@Value17No of course I don’t work for the company. As discussed, I had some of the same questions as you but your post was more thorough so I sent direct to David Williams email.
Was not expecting a reply as soon as I did and was pleasantly surprised. Now, I must confess, I am starting to sense you’re a bit of an amateur investor who thinks he knows a bit more than he does as your replies are starting to give this away, but I will play the game for a while longer. So in response to your post I will say the following:
- Most disruptive tech companies like this list at this sort of time. It’s because they cost a lot to fund privately for 8 years etc and public markets can provide $7 mil in a few weeks. Much easier than small family and friends rounds. K-tig have proven the tech so now just a case of optimising the model. Definitely worth listing now while markets are good.
- your comment about it being a real risk if they have to continually make changes to protect IP etc just screams of amateurishness. Is this serious. All global tech companies pump tens of millions each year into ensuring their tech is at the cutting edge and not easy to copy etc. as a wise man once said to me, if the Chinese aren’t trying to rip off your IP, then you probably don’t have very good IP.
- customers won’t have the option to buy the unit. That’s the point. All customers will be forced to adopt WAAS, moving the decision to buy from a capex decision to an opex decision is a no brainer for companies. Large companies use this model in other areas of their operations, so there is no reason they won’t do it with welding. When bidding on a job (use the Argentinian pipeline case as example), if your company uses K-tig you have a massive competitive advantage over your competitors. Delivering a major infrastructure project 550 days ahead of schedule is insane. New paradigm stuff.
- your view on why only 40 units sold etc shows a thorough lack of understanding of how the decision making process in large companies works. Nothing happens quickly. They’ve used conventional welders for years and years and they don’t take risks on their internal processes lightly. Thus it was always going to be slow to start with as large fabricators had to grapple with the step change. Don’t forget, this applies only to the welding part of their manufacture chain. The inputs can’t be sped up to be 20X faster and once the welding is done, the next steps can’t be done 20X faster, hence large companies are still grappling with how exactly to fit this amazingly efficient product into their production chain. It will take time but is no indication at all that they don’t like the product.
- Kierans situation changed in 1 week?? Explain that comment. It didn’t change at all. Why you think it changed in 1 week?
- final point - you want HC to have balanced arguments??!!?? This is hilarious. This company has been absolutely attacked from pillar to post on this forum. People calling it a shell in 2 years etc. you are now focusing on all the wrong things and trying to claim you are balanced. Then when someone actually does some detailed DD, your response is “oh you must work for the company”. I work for a bank mate. But just like to analyse these companies closely. As always DYOR.
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