NXT: One of the big potential risers of 2006? 3M & others could make it happen

WOW!!

Despite all my posts I can never put into words my thoughts and feelings re NXT and its prospects as good as this:

****************************



bicknoller - 20 Oct'05 - 16:56 - 839 of 846



Hello Mattd1

I find your logic rather hard to follow.

I believe that NXT have increased their royalty income by something in the region of 70% year-on-year for the last five years, and in the main this has come from annual increases in sales of flat panel speakers to replace conventional speakers.

I believe that the annual growth in this type of speaker replacement sales is likely to continue in existing conventional products, and it will be supplemented by growth in new conventional products such as the recently announced ipod docking system, the KEF home cinema system, and the Hitachi DAB radio. However in this past year, NXT licence holders have introduced many new products which are not conventional and in which NXT speakers will not be seen as bolt-on goodies. These include products such as:

 The NEC portable PCs which now come as standard with NXT enabled screens,
 Two mobile telephones in which the NXT enabled display displaces conventional ceramic speakers,
 The 3i DST systems in which NXT technology not only generates the sound output, it also senses user input by means of touch sensitivity,
 The replacement of conventional speakers with sound generating panels in the latest TVR car, Boeing aircraft, and conference hall ceilings

In each of the above cases, the manufacturers have provided for themselves a Unique Sales Benefit, and given the competitiveness of modern business, their competitors will put themselves seriously at risk if they do not respond with a similar product.

The continuing growth of conventional products plus the royalty income which should come from the additional products suggest that total royalty income might increase by considerably more than 70% over the next 12 months, and as Lisa has pointed out on numerous occasions, the strengthening $ will of itself generate a considerable increase in Stirling income over and above this increase.

Your point about the additional royalties from a few 787s is valid and probably correct for the next year. However if the Qinetiq system produces comparable quality to conventional loudspeakers, and it is cheaper to install and maintain, then other airlines will want the system, and aircraft manufacturers will offer it on all new aircraft.

There is also the retrofit market. Extra weight in aircraft results in enormous increases in costs for airlines. An aircraft on a transatlantic run might log over 1 million air miles per annum. Saving a few pounds on the overall weight of a jumbo jet can result in major fuel cost savings given this sort of mileage, and it may well be the case that the cost of replacing conventional speakers and the speaker and earphone wiring with a NXT enabled panel could be recovered by reduced fuel costs within less than one year.


I have only been a NXT shareholder for a couple of years, I doubt that they will need to make another cash call, but even if they do it makes no difference, because you cannot turn back the clock. NXT technology is like a large rock rolling down a hill which is getting steeper with every passing day. I believe that it is inevitable that at some stage income will exceed costs, and I believe that this point is likely to be reached within the next 12 – 24 months.


I am sorry that you have chosen to sell your holding at this point, partly because I believe that the current price is unreasonably depressed, partly because I believe that you will miss out on the enormous earnings potential for technology and for the company, and partly because I believe that when breakeven does occur, the frustration following many years of very slow progress will be replaced by the hope that tomorrow has finally arrived, and the jam is being collected in lorry loads.
***************

Thanks bicknoller,hope you do not mind me reproduceing your post,it deserved to be put next to mattd.

Lisa