G'day @Mer,I have a lot of difficulty understanding CNQ's...

G'day @Mer,

I have a lot of difficulty understanding CNQ's strategy and business model.

It almost appears that the company is run as a vanity project with its acquisition of bolt-on companies that appear to lack synergies, their international expansion into the Middle East supported by high cost engineering base in Australia, their licensing of technology into North Asia on questionable commercial terms and, at the very core, a mis-match of multi-platform products. CNQ basically provided its entire patent and know-how portfolio of its technology and processes to an international competitor for $400k. It is very difficult, no matter how CNQ spins it, to see how that could be a good idea.

The commercial discipline shown by PWN should be commended. The fact that PWN has stayed it course and maintained its focus on value-based pricing and protection of its technology says a lot more about the company than capitulating for a contract that barely pays management and director fees for the next quarter.