Guys, enjoy the lower share price. I have bought and am buying more and at a cheaper price which is great.
So ABV have advertised for a new marketing director to build a marketing plan to sell the truck brake. The last month or so has been a little thin on ASX news; however I wouldn’t be too worried about that translating in to no progress with the truck brake.
The personally believe the seeding of the 10 brakes in to the larger Australian fleet operators is a smart move allowing all concerned to do their due diligence and I don’t believe the larger operators will be able to hold ABV brakes hostage to leverage for free use for long.
Once ABV sells in to the smaller operators who need a financial advantage, these operators will be able to bank significant maintenance savings thus making them more competitive with bidding for future contracts. They could in-turn return those savings reflective in their tenders thus out bidding the larger players who current negotiate business through their economy of scales with their larger fleet efficiencies.
In turn once the smaller operators gain this advantage it may well force the hand to level the playing field of the larger operators to also purchase SIBS brakes.
The good news for us ABV shareholders is that we get a WIN WIN WIN situation. WIN for the shareholders of ABV, win for the operators in lower costs with higher profits or more competitive tendering and a WIN for environment with lower pollution levels; both brake dust and noise.
It may get to the situation where it is a case of not IF or WHO we can sell the brakes to, but a case of if you haven’t got the brakes and recognising the savings, then you company or fleet is no longer competitive in the industry.
ABV Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
