We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Hi lootgaloot, You're obviously fairly disciplined which seems to work well for you. SRT is at a breakthrough point. There are some £4/500 Mill other contracts in the Visible Sales Pipeline. The margins can be quite high and once ( oh alright if! ) the first contracts are announced this will move quickly. There's no profitable track record so definitely a gamble but could be worth a toe in the water?
SRT has created a prudent cash buffer ahead of the implementation of a number of substantial highly profitable contracts. In the Middle East, two new national vessel tracking systems awards and a smaller system upgrade contract with an existing customer were due to commence in March, but have been delayed due to Covid-19 lockdowns. SRT is in discussions with the clients to enable project implementation to start during the existing lockdown period. Prudently, SRT has allowed for a nine-month delay even though the clients only expect the start date to be pushed back by one to three months. The contracts are worth £70m in revenue.
In the Philippines, SRT’s game-changing government contract, worth £31.8m, to deliver a vessel management system for fisheries monitoring is also temporarily paused due to the Covid-19 lockdown. Installation had already started and SRT still expects to earn £17m in milestone payments in the coming year. Cash payments due in April will now be made in June upon recommencement of Philippine government activities.
Shares had hit 55p previously, offering a large upside from current levels when contracts and income begin after lockdown
no problem loot, it's what makes a market and we all have different approaches, good luck with yours :-)
Thanks for your replies TruroTrader and Surprised,
My investment style is to ‘buy and hold’ for several years. So I’m not looking for a quick 10% before moving on. However, I also employ stop losses and because of this I am cautious of buying shares that may have a lot of ‘hope factor’ already in the price. If these deals don’t materialise by August I could easily see my stop loss triggered.
Yes, it’s a case of risk/reward and my cautious approach has already cost me a lower entry price on this share but I am comfortable with missing out on opportunities because past experience has taught me that you can nearly always buy at a lower price at some point in the future; not always, but often enough so that I avoid feeling hurried into buying ‘the next big thing’.
I agree that the fishery protection and security issues continue to be relevant regardless of Covid-19. But these drivers have been relevant for a couple of years now and still the company has difficulty getting over the line.
I agree with everything that has been said about the cash position and the fixed cost base. In fact, this is what is attracting me to the company. I just don’t feel I can pull the trigger just yet and, no offence (I appreciate your advice), but I haven’t heard anything from either of you which assures me that this time it’s different regarding potential further delays.
For now I shall keep this on my watch list and look again later in the year. By then I will probably have missed the boat (sorry for the pun) but for the reasons given above, I’m OK with that.
so the risk is we stay around these current levels or we go much higher...as Trurotrader notes below ..'the fishery protection and security issues that are driving these contracts. They are both still relevant and will continue to be so. '
that's the element of risk reward...if you wait until after contracts announced and they have been flagged up, then you will certainly be paying a premium , sp id reasonably priced at current level pre contract news imo and with the details posted below re mcap, income , cash etc current sp is priced to tread water, one or more lands and it'll be over 40p in minutes imo and position patience is the key in this type of share, if it's a quick 10% and off to the next I'm sure that opportunity will arise, for those who can see an investment a little further on the current knowns all looks set for a trip higher over next few weeks and months :-)
Hi loot, I think it's the fishery protection and security issues that are driving these contracts. They are both still relevant and will continue to be so. The recent cash call means we a financially sound. Our cost base is largely fixed as once the contracts start the initial milestone payment pays for the initial manufacturing costs.
I've been reading back through old posts and doing some additional online research into this company. It's a good story and ST comes across very well in podcasts. However, there seems to be a bit of a history of over promising and under delivering.
Looking back on this board you guys have been talking about the Philippines project for about two years. In one webcast ST admitted himself that it's been a learning experience in terms of how long these government approvals take. Now, the latest delay is Covid-19.
Don't get me wrong; I believe the company are genuinely communicating what they believe to be realistic timelines. I also believe some/all of these projects will materialise at some point. However, buying in now would be paying a full price for the expectation of these deals coming through over the next couple of months.
A genuine question; what do other posters see as a likely percent chance of one or more of these deals materialising in June/July taking into account a track record of previous delays?
Hiya folks.
I'm tempted now too reading that excellent post by surprised. It's also looking like the initial covid shock to the Sp has gone away. Company has survived and we're ticking up steadily. I can see a 2 or 3 times rise from here as these projects kick off.
Hope so anyway.
ATB GLA
LB
Yes surprised, with a current MC of 58 Mill I can see £ a share if any of the other VSP possibilities come on board before our year end. Our cost base will not go up that much even if they do.
Well done TT...we only need one of the many contracts to start and or one of the first milestone pymnts to land this month and the sp should be offto the races, the contracts are substantial as detailed and will transform the company, either way over coming weeks far greater value in the sp awaits and my view is that current levels will appear very cheap once news flow begins...position patience :-)
Thanks for that surprised. You'd think that if these do start in June/July then our interims will look good in September!!
When they announced the fund raise I could only afford £1k but I'm now £400 in profit. ST's doing well then. Good luck to him because without his drive we wouldn't be where we are today.
Found it ..Here's part copy of the write up on SRT from IC
SRT has created a prudent cash buffer ahead of the implementation of a number of substantial highly profitable contracts. In the Middle East, two new national vessel tracking systems awards and a smaller system upgrade contract with an existing customer were due to commence in March, but have been delayed due to Covid-19 lockdowns. SRT is in discussions with the clients to enable project implementation to start during the existing lockdown period. Prudently, SRT has allowed for a nine-month delay even though the clients only expect the start date to be pushed back by one to three months. The contracts are worth £70m in revenue.
In the Philippines, SRT’s game-changing government contract, worth £31.8m, to deliver a vessel management system for fisheries monitoring is also temporarily paused due to the Covid-19 lockdown. Installation had already started and SRT still expects to earn £17m in milestone payments in the coming year. Cash payments due in April will now be made in June upon recommencement of Philippine government activities.
Shares had hit 55p previously, offering a large upside from current levels when contracts and income begin after lockdown
https://twitter.com/surprised_trade/status/1268198821965770756
expects to earn £17m in milestone payments in 2020. Payments due in April will now be in June on start of Philippine government activity. SRT has cash buffer ahead of implementation of a number of delayed (3 months from April) substantial Middle East contracts worth £70m