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

isis - 21 Dec'06 - 20:06 - 13542 of 13545
None of these products are anywhere near the mass markets needed to breakeven, this is where investors lull themselves into a false sense of security.
A Plasma 42inch screen may look the business, but NXT would need them to sell in their milliions and for a highly priced premium product costing several thousnad pounds all they will get is a ridiculous 20p's worth.
This is where Bose's business model is so much better and make it a profitable Company - NXT has a completely flawed business model run by an aloof and very expensive Board.

[nod] - To use an analogy... not long ago Wolfson were selling audio chips to Apple and Sony in very low numbers. Gradually the products became mass market and turnover is increased 100 fold in just a few years. As you know, the most important piece of any business is to get new strategic clients - get a foot in the door and spot the winners. If the client is highly successful you will be dragged along in the wake. The risk is always that the client goes elsewhere to source the component. To mitigate this risk you need to have several feet in several doors and be leading edge.

NTX has got the foot in the door with strategic clients such as Toyota. The small manufacturers matter diddly squat to NTX as NTX royalty will be much the same for 5 million units as 5 thousand units.

But, IMO your point is correct that NTX have had a flawed business model which is why their turnover is so tiny going into 2007 even with leading edge technology.

The best thing for NTX would be a takeover.