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Wizardwiegy

2,184 Posts.

660

03/07/20

09:18

Post #: 45616287
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Originally posted by 2000: ↑

Really good to see things coming together so nicely; great to see deserving management and shareholders being appropriately rewarded, and to find that the naysayers appear to have imploded for now. The AGM did seem to be the cherry on top of the recently announced results, and it is good to see the Company starting to look at some forward planning in earnest; not too far out into the future, because you just can't do that very successfully these days, but a road map with flexibility for the short and medium term seems to be good sense.

I am reassured that the increased marketing effort is being planned in a targeted and cost-effective manner. The one thing that I do not detect is a manufacturing strategy for the future; probably there is one but because there is no short-term pressure the Company is keeping it low key. What they need to bear in mind is that with a rapidly expanding distribution network in a marketplace where demand could be set to explode, it does not take much to imagine that unit sales could take off exponentially. My hope is that Charles and the Team can be objective enough to realise that Chinese manufacturing may not be the whole future, and frankly I would have half an eye on India which is likely to be the next reliable low-cost manufacturing giant. Just as sentiment on China is turning rather sour internationally, so India has the opportunity to build on rapidly improving relations with the USA and to gain significantly from UK trade post-Brexit; they have the infrastructure and a huge potential domestic market, the main question being whether their leaders can up their game and seize the moment. Modi is making the right sounds.

So my three long-shot bets are that the SP will meet my 45c 2020 YE goal, that a dividend will be on the cards sooner rather than later, and that just possibly the next manufacturing expansion, when it comes, will be in India. Food for thought.

Anyway I think we might reasonably expect some more short-term upside on the SP, though there are bound to be those who take profit too early, and regardless it is good to see everyone so justifiably positive right now. The only discussion that I don't really go along with is the comparison with Tesla, because the E2V market is quite different, and frankly I would rather hold VMT any day.

Congrats to all of you who have invested, and particularly those who have held through the rough times ! 2000.

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Yes it's human nature to take profits but even those people must have an inkling that unloading now or anytime soon is premature. It's hard to see the next quarter and the ones after having a decline in sales and like you said, if anything exponential occurs it's goodbye 30-40c range quicker than you can blink. You could see some traders dumping back into 32/33 yesterday but the buyers stepped in. They'll be hesitant to sell at each pip for the time being which will provide a lack of resistance which means only one thing. Only a fool would conjure up the idea that things aren't looking good and want to get out now. Agree with the Tesla comparison or even referencing them on any level.

VMT Price at posting: 34.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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