Lightwaverf Share Discussion Threads

[gozo] 13/7/2015 20:28

Very pleased with the RNS and the progress and potential this deal offers.

I've just been reading a bit of press on Havells....a couple of articles below may be of interest....to some....on here.

[sinkyj] 13/7/2015 10:32

Fair comment, Clocktower.

The profits warning, and this announcement are linked though. So lack of profits is actually for a positive reason.

If you read back, I have said for many months about the need to raise money. But there are good raising and bad raising. Raising money to obtain more eventual profit is not always a bad thing and certainly not all fund raising result in lower eventual share prices.

[clocktower] 13/7/2015 10:11

I never said it was bad news sinkyj - but imo it does not justify buying the stock when there are so many other problems to overcome from within the company, as you say the profit warning for a start and are you suggesting that the 50% of funds they are likely to receive from the final contract will place them in a situation that they will not need to arrange other funding and that no dilution will occur?

[nar1] 13/7/2015 10:07

Clocktower - is just a wind up merchant

[sinkyj] 13/7/2015 09:54

*duplicate*

[sinkyj] 13/7/2015 09:53

They are UK sockets and light swtiches. I would think a big bit of customisation is needed and all ready expected by clued up investors. You can't sell UK product to India. Hub's , none specific UK products will be fine.

Yes, the costs will be up front. The company has already given a profits warning.

So how is this bad news then Clocktower. Minimum 1.5mil USD to the 4 largest lighting manufacturer, who is paying something towards localisation of the products.

[whoppy] 13/7/2015 09:52

Of course they are based on the core products..Havells are funding any customisation required. Some might need customising..others will not..the majority won't..we are not talking about new products and LWRF having to fund new research and development. It's all done alongside the core range with some products being bespoke for the customer. There are always going to have to be tweaks for different international markets. Havells are paying for this and are paying 50% upfront of the value of the contract. That's before the products are supplied/sold.

[clocktower] 13/7/2015 09:49

alyynch,LOL. Do you know hat it costs just to fly out and spend a few days in India in a decent hotel?

Do you know what a business visa costs for India, do you know the hassle of doing business with India? Have you ever been there. Just to get a holiday Visa is around $150.

It is a great place to do business or holiday but to make money from Indian companies is much harder.

[clocktower] 13/7/2015 09:43

"The products to be supplied to Havells are all based on core LightwaveRF technology"

You read what you want whoppy - but based on core products does not amount to supplying core products without amendments. That is all about assuming what you want to see rather than questioning the facts.

[alynch] 13/7/2015 09:42

Clocktower - really, do you know how a business works? No company (not even a $1.4B company) gives $37.5K to a smaller company unless they are confident in the company to start with. And, it's just good business to make a deposit. Gives LWRF guarantees they're not wasting their time developing something that the company could then (if they hadn't put anything upfront) turn round as say they don't want them after all. It's a sign of trust. Also, it of course goes towards the R&D for them. Why shouldn't they pay for the research and development of a product they are asking for? why should LWRF fund that?

Also...they looked at all the available companies, and decided that LWRF was best. That says a lot.

[whoppy] 13/7/2015 09:34

Read the RNS. Havells are funding the customisation for bespoke products which will be sold alongside the core products. I guess in addition to the core range, Havells feel their customers would benefit from some customisation and are willing to pay for the costs. They know the products are the best on the market and will sell.

[clocktower] 13/7/2015 09:25

Get a grip, One must assume the contract does not become binding until the products are approved, hence the $37,500 to try to meet these requirements - are they that short of cash that they needed this small sum to amend the designs to meet contractual terms? How long will it take to come up with the goods, and like most business deals - until such business is embedded into the company the costs are likely to exceed the gross profits imo.

[whoppy] 13/7/2015 09:18

Oh someone just did. 30,000 buy.

[whoppy] 13/7/2015 09:16

Why can't people read RNS's. They get 50% upfront!!

[sinkyj] 13/7/2015 09:13

Some bizarre posts and strange share action.

Clocktower, There have been some weak announcements, but how exactly could this not be announced, as it is a signed contract with numbers??

This is a 3 year contract with one of the biggest names in lighting, Sylvania with guaranteed minimums (1.5 million USD) . Yes, it will cost money to make and design those products and take a little time, but you cannot spin this as bad news. There is no reason the margin won't be similar to the UK, it's shipped from China to Distribution in India. India is 230V 50Hz so the Electronics will be ok, just the tooling to change.

Hydrus.. they clearly weren't entirely happy with LWRFs range. Surely they can't create bespoke units for every big retailer?!"

Of course the Indian market requires new products, UK sockets and Lightswitches won't be much good there and Air conditioning instead of Central Heating. I expect if LW got an order from the USA they wouldn't want UK sockets either. Also taste in Electrical accessories varies vastly from region to region, it goes with the territory.

"it has signed a long term supply contract with Havells India Limited......The contract requires 50% deposit with order and final payment ex-works. Volumes are contracted to be a minimum of $500,000 in year 1 rising to $1,500,000 over 3 years..range will be stocked in over 290 Havells' owned showrooms.. Havells India Limited is a $1.4 Billion fast moving electrical goods company..... In 2007 Havells India acquired world renowned lighting company Sylvania, thus becoming one of the top four lighting companies in the world.

[nar1] 13/7/2015 09:12

Clocktower - do you own any shares ?

[clocktower] 13/7/2015 08:58

alynch, I guess it was someone else's sell. However if your stuck in here at higher levels, good luck as in the long term you may do very well if all goes well.

[alynch] 13/7/2015 08:51

Have been in for years, and will be in for years. This is all good. I'm talking company news, not a quick buck on a few shares...

[alynch] 13/7/2015 08:46

You say that, but it's MMs playing. One of those is a tester buy I tried earlier, and it's showing up as a sell.

[clocktower] 13/7/2015 08:45

Alynch, I see you agree that the company are likely to seek further funding very soon, that being the case are you not of the view that the share price will drop further as they will no-doubt have to issue stock at around 15/20p to fund growth? So why would you buy now?

Do they think investors are that blind that they cannot see the intent of trying to improve the share price on semi positive looking RNS?

[hydrus] 13/7/2015 08:32

Market disagrees with you fellas

[mg78] 13/7/2015 08:27

It's going from heads of terms to a contract with one of the global giants and breaking into the Indian market that is the news here.

Do you know how long it can take for a company of CYAN's size to actually do a deal and secure work in that country?

That's unusually quick progress.

[alynch] 13/7/2015 08:24

Of course this is great news. And of course profit is what matters in the end. This RNS implies orders = turnover = profit. Were you hoping to buy at a lower price, clocktower/hydrus? Yes, there might be more fundraising, often is in a developing company like this, but anyone holding long-term will feel more secure knowing that turnover is expected to increase over the next years.

[hydrus] 13/7/2015 08:20

Also sounds like quite a lot of extra costs as they clearly weren't entirely happy with LWRFs range. Surely they can't create bespoke units for every big retailer?!

[hydrus] 13/7/2015 08:18

Yes it's not that good news and they had highlighted this anyway in previous RNS. All that matters is end point sales and as the other poster says, profit.