quiet for now - q3 next week?

Things are pretty quiet on the forums at the moment, spanning from a quiet period for news from the company and low trading volumes. Hopefully we get the Q3 financials next week to give us something to sink our teeth into. i think we should get results based on the timing of previous quarterly results.

I expect we'll see a steady rise in revenue and profitability. Anything else would be a dissapointment. I dont expect full (ie Net) profit arising from this quarter, but i think (hope) based on the upward trend that we could get into the very low millions in EBIDTA. if so that would be a good result. There's no interest or tax to speak of so the depreciation component will probably be the difference, but since its a non-financial expenditure i expect NWT will be in a significantly better cash flow position with money coming in far exceeding outflow.

Since orders precede bookable sales i actually anticipate some of these deals they've signed in previous periods to start realising revenue so i think revenue growth is actually going to be good for several quarters to come.

You get the feeling that the company will probably start releasing some more news soon after a period of inactivity. They set 30 June as a target for releasing more solid news on various aspects of the jabiru launch, but i think they will (or should) start releasing snipets here and there. I dont know if 30 June is the be all and end all date, because the issue as i see it is that they have to convince the market that they are going to make this deal happen.

We need to know, amongst many other things:

- Do they have pre sales and if so, how much?
- who will finance the deal? What will it cost NWT holders, if anything?
- whats in it for NWT shareholders (to be provided in exsact terms)?
- who are your partners in this?
- technical elements, such as do they have a slot organised? Not getting a slot is one of the significant risks as far as i can see. If they can prove they have a slot (or release some info on how that's proceeding) it will put a fair few people at ease.

Essentially the market needs to be able to make some sort of calculation of the viability of the project, the risks (and how they are being managed) and the overall profitability of the deal for NWT shareholders. Without this info sadly we might linger for a while. On the upside we're probably at a low and good entry point for anyone that can see value or be convinced that they are going to make this a reality. I'll be watching closely...

A massive project like this cant be measured on a day by day basis, so i dont think we should expect news every week, but we can expect the directors to stick to their commitments and hear some news over the coming months on how things are progressing...Until then we can wait for Q3 financials and see how they're doing.

Personally i like the time for entry now for anyone that can be patient and afford to hold for a while. For me the downside risks are very low compared to the upside potential, but we all assess risk/reward differently, and i dont think anyone can say with much certainty exactly when the price will rise. I dont agree with 3 cents by June which ive heard before, but i think we gotta be close to a cent or beyond by 30 june with some deccent results and more solid plans on the jabiru launch. lately NWT results have been quite easy to predict of late and all moving forwad positively so i expect another successful quarter this time.