ok, where to start... firstly a lifestyle company is not where we are at. HMD was founded by the right person but then that right person was not the best person to execute growth and the creation of a business. We are a bit stuck but there could be light at the end of the tunnel.
-There is a genuine demand for the product and service.
-There is a way to get some runs on the board in the USA via e-Lōvu. This is real and happening. The deal structure has been fixed up and there is a meeting to discuss future licenses tomorrow, not sure when that will materialise as anything material but it is happening...
-There is someone who is now doing what should have been done 12-18 months ago. If I was in Ron's position I would step down, walk away and get a tax deduction from my investment. Ron is a better person to have at the helm than me as he is increasing his workload to get an outcome. Ron did walk away from CSX when it tanked as it was under his watch that it went so badly south. The increasing workload for him does suggest that he sees a genuine upside outcome. I will be making a point to catch up with him when he's next in Qld (usually with EMV) and get a better understanding of things.
-There is an understanding that the communication culture has been critical to current lack of traction. I seized on a comment by Ron during the meeting and probably spoke too much however I feel like I did hold him to account, @shodd can give more feedback about the meeting.
-There are unfortunately very real barriers to announcements as the health systems do not want anything announced nor discussed. Ron is painfully aware that this is sinking the share price however there is no other way than wait and see... given the current track record I would think most will not wait and see but move on and look back around maybe later....or not...
-There are real hurdles in hospital deals, some have timelines of 2 years for completion, this is not unique to HMD. Broward is a real thing and many of the issues actually happened. The Broward deal is also currently on the desk of someone in the Florida Health Dept as it involves government money for maternal deserts. This is a real thing however given the prior track record... truth will be in the fullness of time and why would you stick around.... come back later IF it happens...
-HMD is effectively a listed startup that needs to start acting more like a startup and less like a listed business in the sense that communication needs to be directed more to the shareholder base and to ASK for assistance and capital commitments BEFORE seeking them elsewhere. This is ENTIRELY normal behaviour for startups. The very next meeting I had after HMD was a fintech set up by very clever traders from a big US bank and who wanted to ask for some help with strategy and some other things, that business is flying. Those guys know their shareholders and who can help with what... HMD needs to do the same. Shodd was able to offer an actual bit of tech help for zero charge as he wants a return on investment. 1 meeting, 1 mention of a need and 1 result.... how hard is it to ask your shareholders who they are and what they can contribute... this is not CSL or RMD or SHL etc... there are people that can assist for minimal cost as they are already invested... that's how start ups work... HMD cannot be too proud to beg until we get our wings and hit the sky... there must be Ob/Gyns who have bought shares in HMD why hasn't the sales team found out and then hit them up as a soft target???? Maybe it is a simple as sending out an email asking if you are a practising Ob/Gyn and would you like to trial the device??? what if 6 answered YES and we found an extra 1200 device sales just by asking our shareholders..... HMD is a data analytics company so SURELY they can analyse who is a shareholder....
Dunno... I voted no to most things and made it quite clear that it is hopeless that we are where we currently sit... so much could be done so much better than it is. There is hope but first there is a grind and I can't see a big win in the near term. I also am too deep to sell out so...... dunno? e-Lōvu is highly likely to be our Get out of Jail free card... it should have just been gravy but thems the brakes.
HMD Price at posting:
6.3¢ Sentiment: None Disclosure: Held
