Ann: Guidance Update 2HY, page-20

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16/06/24

22:35

Post #: 74341955
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Originally posted by Holdtight: ↑

Given the lack of communications from the company, I will highlight some of what Mark said 2 weeks ago in the video.

* Xclave expected to be up and running in August.
* Market has been flooded by cheaper armour and helmets and consequently new requirements have been set in USA. Highcomms expects to be the first to be qualified in September.
* Walked away from some low margin tech business with the ADF.
* Pipeline was $600m 18months ago and is now $300m. Included $300m sales to India, which they removed as being unrealistic. Current pipeline has orders from $180k to $25m and are seen to be very realistic. Building the current $2m monthly sales towards a goal of $6m to $10m per month.
* Drone repairs and spare parts remain an attractive margin business with ADF.
* They have exited a few technology parts of the company, but are looking at others that are "easier to work with"
* Now seeing $6m in cost savings from the move from Adeliade to Columbia.
* 6 weeks ago Mark launched a $103m fund called periscope to invest in defense companies.
* The body armour is not only 30% lighter than the competition, stronger protection from ballistics and also does not retain body heat.
* Youtube has several videos of random people smashing the body armour with little to no damage.
* Ukraine fighters who had been killed had their armour recycled.
* USA playing with the idea of school backpacks in Blue and pink for kids to hide behind in the event of a school shooting.
* FBI used highcomms shields in the latest school shooting.

Here are a few interesting comments from Mark:
" one sale order away from being great"
" company has turned the corner"
" will step down in Feb 25 if shareholder value has not improved materially"

Overall, imho, Mark deflects a lot of the responsibility of the the poor share price performance to
1. Previous management prior to him joining
2. US government/congress holding up on paying a $25m order.
3. Polish regulations.
4. ADF incompetency--- as his class mate who now runs the purchasing division would not buy the worlds best helmet!

Overall, I was disappointed after listening to the video. I will continue to hold my stock at these level, but there is an arrogance of this chairman that leaves me feeling uneasy. Sentiment changed to hold. DYOR.

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Mark is a very impressive operator. He clearly does not need the stress HCL has served up....i feel he is doing his best to clean it up, amd i am holding for now.

I accecept the explanation that the US order being caught up in congress.......this is a WTF moment.

According to Mark, HCL does not need to raise $$. Let's hold our breath for a few more weeks.

HCL Price at posting: 15.0¢ Sentiment: Hold Disclosure: Held
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