Can't believe this little microcap remains off the radar. The company has a patented product with real sales, that has proven itself in the mining industry. A braking system that can be justified on so many grounds - cost, safety, reliability, noise, reduced wear on itself & tyres, environmental issues as it is a sealed unit, etc. There is sustained growth in a segment of the mining industry where it was first adopted (underground), now there is an addional segment of the mining industry which appears poised to adopt the braking system; namely open cut mines. Then there was the recently announced 10% price increase that didn't raise an eyebrow from its existing clientele; which gives you a feel for just how much they value the product. They continue to expand the range of vehicles to which they can retro fit the product, adding the Toyota Hilux to the Toyota Landcruisers. ABV has also just attained the accreditation they require to fit the braking system as an integral part of the new vehicle manufacturing process, as opposed to retro-fitting to used vehicles. On top of all this they appear to have finally nailed the development of the braking unit for the garbage truck industry, and will announce their production plans mid-year. Oh and by the way, they have pretty much crossed over from being a startup firm that is burning cash to one that is generating profits and doesn't require anymore external capital. As soon as they establish themselves in the garbage truck market, you see how their product could continue to be developed for additional markets; such buses, taxis and other vehicles that stop frequently and substantial safety, reliability, environmental, expenses associated with down time due to repairs & maintenance issues, etc exist. The size of all these markets is very large and continues to expand. Let's hope this little Aussie firm doesn't get taken over, rather that it continues to remain a publicly listed company in its own right, and handsomely rewards its patient long term shareholders. Finally let's not forget that one of its Directors, namely David Slack, has a long and successful career as an Australian equities portfolio manager & CIO of funds management businesses. David Slack personally invested a substantial sum of money in the firm a few years ago and now sits as an external Director; which goes a long way to suggesting how much potential this little firm has to grow its profits.
ABV Price at posting:
1.8¢ Sentiment: LT Buy Disclosure: Held
