PWR Holdings Limited

ASX:PWH

PWR Holdings Limited

ASX:PWH
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$6.56 (-1.6%)
Last close price
#107
Rank
14
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Forum Topics PWH PWH Business Model/Strategy

Pinned straw:
edgescape
Last edited 2 months ago

BAE systems has made the first STRIX VTOL test flight PWR Holdings involvement in this project is for the cooling system.

Reference of PWR Holdings initial involvement can also be found on the BAE systems website - https://www.baesystems.com/en-aus/blog/how-pwr-went-from-f1-to-drone-technologies

I think this project with BAE systems has been the only thing supporting the share price lately although the price appears to pump in the morning before getting dumped late in the day. Interesting this bit of news was not announced recently to the market.

Hard to say where the market demand for this drone will be in the future.

Being a test flight it is still early days so we shouldn't expect what is on the latest AGM presentation below

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Slomo
Added 2 months ago

@edgescape, I've heard it said that amateurs open the market and professionals close the market.

If this is true, it might account for enthusiasm in the morning driving prices up only to fall later in the day as jaded pros trim.

None of this should impact longer term holders.

However, the Founder effectively exiting 40% of his position after today's close might dampen the enthusiasm of even the earliest of birds flocking to this stock tomorrow morning.

Announcement here - https://www.marketindex.com.au/asx/pwh/announcements/change-of-directors-interest-notice-kees-weel-2A1572559

Not sure exactly how to read this, but "Kees Weel has renounced his interest in the" Trust that held 6.7m shares (40% of his total holding).

Seems he received no compensation for this despite forgoing a share of $54m in the process?

Kees was formerly " a director and shareholder of the trustee and a beneficiary of the KPW Holdings Trust".

This sort of thing might make sense if it was part of a divorce, family distribution (outside a will) or some other business / partnership settlement.

Would be nice to know why this happened or some sort of context but that's not required information for the ASX filing and comms has not been PWH's strong suit, especially when delivering bad news in recent times...

Disc: Held

22
edgescape
Added 2 months ago

@Slomo

Looks like interesting bit of news. Wonder who else would be running that trust?

Noticed that short positions have started increasing as well

I hope that BAE systems news wasn't the news the market was waiting for from PWH.

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15
Slomo
Added 2 months ago

Looks like this is Kees and his son Paul, but possibly others too?

The 4th Mar-24 ASX announcement - https://www.marketindex.com.au/asx/pwh/announcements/change-of-directors-interest-notice-kees-weel-2A1509579 notes that "KPW Property Holdings Pty Ltd ATF KPW Property Trust, an entity associated with Mr Weel and his son Mr Paul Weel"

This does not say they are the only directors / beneficiaries.

Also Paul was previously part of PWH but has not been for a while.

So I think this is probably a family style trust as opposed to a business related trust, but I could be wrong.

If it is Paul only, this would be a tax effective way to bequeath these shares ($54m worth) to his son.

This takes CEO Kees' holding from 16.7% to 10.1%.

But why do it now?

We might see announcements of this substantial shareholder (KPW / Paul Weel) selling soon, so this could bring some selling pressure.

Paul would want to have a good use for the funds IMO with PWH trading at Aug-21 levels.

Price only got lower than this for a couple of months in mid 2022.

Disc: Held

15
edgescape
Added 2 months ago

@Slomo

Thanks for following this story closer than myself. I've been a bit slack lately :(

Couldn't exit in Strawman here in time but I'm fully out in real life after it popped a few times above $8.10 (with each time the share price flopping at the end of the day) and parked the money elsewhere.

I should note that the VTOL drone project with BAE systems Australia seems small in comparison to the BAE parent company based in the UK who are involved in the Eurofighter Typhoon and a joint strike fighter concept (GCAP) with Japan, Italy and UK.

If PWR Holdings can get some attention from the parent then that would make the stock more appealing.

I have also noticed there are lots of VTOL projects around the world when I do a search. So it looks competitive but also an evolving sector.

13