AVR (ASX) CR- quick feedback from WP

Originally posted by dgoynich ↑

As you can guess - I've emailed WP and have permission to share / paraphrase his feedback. I wanted to share some context WP put around the CR decision so here is a summary of his reply to my questions about motives for the CR.

1. During Code red when budgets were made, there was no appreciation by the board they could even make curved 3D products.

2. AHZ now has 2 curved products already done and a large pipeline of curved products

3. The curved products take cash to engineer, test, develop and get to market. These are accelerators. There is just no fat in the budget to develop these products.

4. Although on track to Break Even - WP hinted its taking all the companies resources which doesn't allow AHZ to invest in the Growth Drivers and accelerators which will hopefully provide a greater return on investment.

5. WP believes that bringing the new products to market will mitigate any dilution and beyond and move the share price further than previous without the CR. ie the CR is being done because management believe it will generate a Return on Investment.

6. There are critical announcements to come and catalysts

7. WP takes all shareholder concerns with the direction of the company VERY seriously. He is representing us and doing what he believes is the right thing to appreciate share price higher and faster. I have no doubt about this.

8. The decision to do a CR was not taken lightly although it was obvious to WP and the ENTIRE board. The entire board wants to keep the share price moving forward. This is the boards belief of the best way to move it forward noting they have the data and we don't.

My take on this is obviously positive. Some of you may think otherwise - always your own choice.
A. These products will drive revenue growth northwards in excess of the 2020 vision. This is the underlying message in WP's email.

B. WP has never lied to me although on I've taken a few of his emails too literally sometimes. The one about 6 positive announcements in the coming week / weeks, month/ months still haunts me (and likely WP). Its took about 8 months for the announcements to come that I expected. You get that. The VAX as an example took way longer but was number 6 on my personal list. The share price however did appreciated on that one!

C. Anyone who is involved in any "GOOD" business or project understands that as new information comes to light, changes to the original plan have to be made. Its called adapting (no pun intended) to the situation and being flexible. This CR is a great example of adapting to the updated information - getting previously unknown and new game changing products to market takes cash. A good manager will change his decisions to suit new information - even if it initially seems bad, with the hope of a better long term outcome rather than stay with the initial short sighted decision to save short term face. A CR decision obviously is one event WP would be conscious of as he did say his intent was to do a dilutive raising. Times change - Adapt and move on!

D. My personal realization and desires are to get as many products to market as quick as possible. IMO this development pipeline has to kill the market and quickly. IMO AHZ has to flood the market with products and get a foot in the door and a foot hold in one giant stride before competitors can perhaps come up with a competing process. For those saying - save the cash - IMO you aren't thinking long term and you are potentially creating scenario where we lose our competitive advantage.

D. I'll be participating in the CR as much as my finances stretch although noted quackers comments about investing time in his kids - also a great investment and IMO if this investment is causing you stress with your family - it ain't worth it. For me - i'm not stressed about it as I'm happy with my research and data.

As always GLTAH and DYOR
Cheers
David

Expand

Thanks once again and fully agree with you.

I say let’s do this, get 3D products out there and kill off the competition.

I will be buying.

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Last $13.51		Change -0.490(3.50%)		Mkt cap ! $285.5M

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$14.05	$14.05	$13.40	$234.3K	17.15K

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