Hi All.....and Sents!Exciting times!A couple of random...

Hi All.....and Sents!

Exciting times!

A couple of random thoughts.

Where I come from "Corporate Transaction" means merger or partial / full buyout. I am fairly certain that it is a merger. That surprises me a bit as I thought it was off the table when K drew our attention to Ivan's 'puff piece' about the company's wonderful 'supply chain'. On reflection I figure it was an early heads up for the market that the Virus would not have a significant effect on company ops.

Don't think a 'sale' would work for either party and besides, the combined entity would provide suitors with the complete package. So I would expect merger this week and takeover by one of the giants by year's end.

In order to explain 'why', the board ought to table the prelim final report so I would expect that out tonight/tomorrow. Is it going to be a merger of 'equals'? I hope we are more 'equal' than Soco and hope for a 50%+ share.

I figure their sales volume @100k but skinny margins. VMT could grow to 50k volume this year and be very profitable (better). VMT own the factory and licence but at the rate it is going, they will need to build phase 3 at Nanjing (manageable thru cash flow).

There might be a prospect of setting up in India to enable Revolt to go big but like the Chinese markets, the margins there are very skinny. That said the major benefit might be a quantum increase in parts so that the unit costs drop significantly so the euro and Americas market become a money printing factory for us.

Another issue is the 'cultural' transition. Who stays , who goes. I am hoping that Phil stays on as chairman to bed this down (please!). That means Soco has the CEO position with Charles moving to Sales/Marketing director (I think he would enjoy that the most anyway). Also like to think Jacki stays around to help field suitors and help with regulatory 'hurdles'

Now........... watch me be proven 300% wrong. I am one very confused / excited punter

Gotta.......you back in?

Good luck all.