Sydney Investor Presentation

Hi all,

Attended this evenings Sydney presentation:.

I was very impressed - I am going to buy more.

Important point raised was that WD/HGST doesnt have the right to frustrate a third party bid for the company - Jim doesnt see any issues in realising shareholder value. He went a little further to state that we did very very well in our relationship with WD - to the point of it being stacked very favourably to our side in terms of the ultimate benefits to both parties. He didnt say it, but I got the impression from body language that this was a major coup.

Further, he stated that they are in soft discussions with progress with "all the stakeholders you may expect" (which I took as not only memory makers but possible end users - Google, Amazon, etc.)

The power savings are approx 1.5m X less than DRAM - apparently this is already on their website. Google apparently uses more power than Turkey.

We got to why no one has already approached with a take over offer. He said that these big companies in the valley like 100% certainty that something works and they will pay exponentially more for something than something else without an exact instruction manual. I was a little sceptical of this, but he said there has been a change in culture of big companies squashing little guys with reputational damage from lawsuits and so on. Also, Telstra's recent tech writedown sprung to memory - no one likes the look of a bad investment either.

Finally, he repeated the 'robbing banks' comment and stated that we have enough cash to sale and holders need not expect a cap raise.

This is one of those rare occurences I think on the ASX where patient retail holders can make a massive return from patiently holding and waiting for the board to execute - from the presentation a exponentially lower risk but high uncertainty situation. There appeared to be some professional investors in the room, but from their questions it was clear they had not done their homework, glad they arent managing my money (i.e suit and tie types).

In my mind, the biggest asset we have now is Jim Dorrian. Because he has done these massive deals, he will be able to extract shareholder value as the remaining technical/ fabrication risk diminishes and negotiations begin.

Anyone else attend and have any thoughts?

Good luck to all,
dim81