SnapperWe can all rattle off likely names in a range of...

Snapper

We can all rattle off likely names in a range of industries. DF, CK and AS have all made it very clear who they are dealing with. We have known them for over 2 years. We also know how long the new platforms take to develop and we also know that once the deal to supply into a future platform, even 3 years away, is made the value is booked. There are 12 automotive applications in the pipeline, with only the Visteon glovebox deal announced (by Visteon as an intended 2009 application). we haven't received confirmation that a deal for 16 M units in 2009 has been signed and I doubt we ever will. Some see a need to have the deal witnessed before they feel their investment is secure! Others live in the real world. BAE involves several applications, none of which we will hear exact details of. Aerospace has a number of applications we have all seen demonstrated and all these will be applied in times dependent on the customer timetables so grin and bear it. The problem TZ has is insufficient quality engineering staff to address all the applications, or even a small percentage. Isn't that telling you something about the huge demand? DF talks of "several %" of a US$50B+ market in a few years. That is not new. They have been working towards that scenario since before listing. In the early days we were expecting a M&A relationship to value add and provide the infrastructure to list in a modest situation in which we received royalties. We could have done that last year. If we had the shareprice now would be $30+ and next year it would still be about the same and the next year and the next. Management could see a way forward in which they captured much more of the potential return by running the show themselves. It has taken longer but backmarkers are always faster and since this is a marathon we have plenty of time to overtake the early leading positions and will soon leave them for dust. Capturing several $B worth of business is very much on their minds. Visteon will be worth over $1/share when fulfilled so I expect total automotive returns to eventually exceed $10/share profit.

I expect automotive to disappear within the total of all applications since the new units are all digitally addressable (and extremely secure - far more so than engaging in internet banking for example), are cheap for many applications (just a few dollars not tens or hundreds although there are many of these as well for high end applications), save the customers serious money so making their use a no-brainer, have no serious competitors at present and have a range of applications limited only by imagination. The market will develop to incorporate Intevia since you can do things that were otherwise not realistically possible.