Hi all,
Have been reading through a number of past IOT posts and this particular one (refer above and below) from earlier last month caught my eye.
The notes from @brasssmad after he/she attended the AGM provide some additional insight and answers many of the questions that posters have repeatedly asked over the last month or so. The notes also seem to be consistent with subsequent updates from management.
Production in early July and final testing - based on this remark I think we can now assume that 'production' refers to the production of various components that have been finalised in readiness for product assembly eg. rotor blades, moulds etc. Final testing may require the update of certain components so it is not unreasonable to expect that both production and testing occurred in July.
It is also news to me that apparently management expect the Chinese market to receive half of the total production, but then again due to AAE's origins, connections and reputation I would not be surprised by this.
Now am well aware that the majority of contributors on this forum (mainly those who don't currently hold) have been quick to dismiss the company's accomplishments to date and they seem quite convinced that production of roam-e won't eventuate. But have the non-holders spoken to management recently and also did they attend the AGM to gain further insight? Otherwise I would be wary of unsubstantiated comments on this forum. Based on further research and DD I hold a different view to them and see no reason to hit the panic button just yet (if at all).
Investors obviously get nervous when they see the share price retreat to fresh lows, but previous support (April) exists in the high 3s to low 4s so that may provide a floor, at least until we receive further updates from the company.
Recent trading activity IMO suggests that at least one algo is involved in the latest sell down from 5c - it/they have been massaging the price into the closest bid immediately after a sale occurs from the sell column. Now why would they do that? Is it so they can sell the rest of their holding/s at rock bottom prices? No, IMO significant accumulation is taking place ATM and what better time to do it when sentiment is at an all time low, fleecing retail investors (and potentially the sophs who recently bought in at 7c) from their shares.
At 4 cents, the company's Enterprise Value is @$15 million and the company is cashed up to execute its strategy. Management have mentioned three or times already that indicative orders for roam-e should be @440k units. i.e. this is not just a one off / throwaway comment that they no longer speak about, instead they have reiterated to the market that they genuinely expect this to happen. Would they be silly enough to reiterate if they weren't feeling very confident? I don't think so.
But whether it be 100k, 200k or 440k in terms of confirmed orders, if they do manage to deliver a fully functional product en masse by Xmas, then I think that investors could reasonably expect to see many multiples of the current SP in the weeks ahead.
I guess it's always a bit of a gamble until it actually happens, but IMO a compelling one given that the SP has been butchered and bludgeoned even though we can already see from recent videos that the roam-e is well beyond the concept stage. So I'm in for another small parcel and will be watching with increasing interest.
GLTA
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'Notes from IOT AGM/Question Time – 30 Jun ‘16
Explanation: The IOT AGM consisted of 2 parts, as is commonly the case
Part 1: AGM – Formal
Notes were taken on the points of interest to me:
Item 5 – Interesting to note, management has been able to negotiate issue of shares in lieu of payment for certain services
Item 6 – A further issue of shares requested to provide flexibility to facilitate further non cash consideration of services.
Items 7,8 & 9 – Specific details of Employee options “to assist in the reward, motivation and retention of personnel to drive Company growth and therefore shareholder returns”. Options to employees will be issued at 2 x VWAP ie certainly not discounted. It needs to be stated that the shares are an “option” to buy and if bought provide income to the company.
Part 2: Questions – interesting to note, the IOT Notice of 2016 AGM stated that questions needed to be submitted to the company 1 week in advance of the AGM however many questions were accepted direct from the floor. (This is a refreshing change from the formality of some AGMs)
The following responses were provided (in addition to previously addressed matters, as above)
Reference production of RoamE - Simon Kantor is actively involved in getting production for the RoamE bedded down successfully. The RoamE will begin production early July, final testing will be done to ensure quality and build standards are met and full production of 50,000 units per week will begin early September. Confidant of achieving these milestones. Certification of the production items will be carried out after production begins early July.
The RoamE is more compact than it appeared in the photos and much lighter than I expected it to be, weighing in at 750 grams.
The blades fold horizontally and vertically.
The RoamE was not flown at the meeting, the reason being that the RoamE hoin the office are prototypes and are not certified. The process of certification will be done on manufactured items. In testing (more than 2000 hours) the RoamE has performed well under controlled conditions.
Simon Kantor sees the main utilisation of the RoamE will be for family functions. He described it as a ‘Personal Device” and added he does not envisage it is device for action sports. That is why the video was shot in a warehouse.
As per ASX Announcement, and exclusive distribution agreement has been signed with The Product Group for Australasia.
The video was played – it was confirmed that the video was professional quality and produced to provide an example of the setting the RoamE could be used.
The RoamE is not water proof.
There will be a range of options available.
A warranty of 1 year will apply to all components apart from rotors, but 2 sets of rotors will be supplied with all RoamE orders.
It was stated the company does not wish to share RoamE videos prior to the global assault in October. Social media will be the medium for people to see what the RoamE can do. They have a plan and are sticking to it It occurred to me that this means the company cannot be accused of putting enhanced quality results into the market, with this strategy.
Without putting a time frame on it, the Chinese market is expected to receive half of all production,
The OK Smart Watches will be marketed aggressively in association with the RoamE. '
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