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It wasn't 200p + in a high interest / high inflation environment. The price started tumbling from that high once it become clear inflation was materializing and the business had a fair bit of debt and no cash for acquisitions. It's been on a downturn for a couple of years now. Throw in the lack of director buys and the major forecast misses / write-offs in the last year or so and it's guesswork as to what fair value is here and whether they can get back on track. The next trading update which should be due anytime soon will be telling.
Agree and industrial demand in their key sectors is depressed, so cant see it improving anytime soon. Back to 30's perhaps.
christ this share is an absolute stinker, i knew i should have sold out on the first rns of bgf accumulating shares, given the buying volume it was barely holding the 70s, they were clearly holding it up. absolutely ****ed with an avg buy in at the mid 80s, how the **** this ever did over 200p in a high interest/inflation environment boggles my mind
News of yet more institutional buying.
BGF Investments have now gone above 13% with 14.375m shares. So they've bought another 1.24m shares in the last week and almost 3m shares in the last three weeks:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/93504938
Good to see the CEO buying another 14,000 shares at 71.25p:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Director-PDMR-Shareholding/93500745
BGF Investment Management are still buying. They now own 12.62%, or 13.134m shares - so they've bought another 1.66m shares in just the last two weeks:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/93455058
FYI Octopus AIM VCT2's results this morning had this to say:
"SDI Group disappointed a couple of times over the year due to the end of a contract with Atik cameras, which had been lucrative over the Covid period. However, we are encouraged by the recent change in the management team and the new CEO comes with a wealth of operational experience in the sector."
Completely agree with what you are saying coffee to clarify. By growth I meant showing that the existing businesses can be run profitably and return to organic growth. The last thing SDI need to do right now is more acquisitions IMO. They need to steady the ship, pay down debt and then go again only when they have proven the existing businesses are being run well otherwise it's pointless. Still don't think the SP will get anywhere near £1.20 in the short term though. It's not cheap on current metrics at this price, and if there is any hint of missing the already reduced forecasts then it will get hammered.
Someone just paid 75p afterhours
Plus theres an uncrossing trade for 75p as well.
£1.20 in its sights ...
November 2023 share price £1.20.
December 2023 £1.10
Couple of weeks ago 60p
Disagree,
It won't be growth it will he consolidation and increasing profitability and cash generation.
Making sure each division is a standalone profit centre that can also x sell its products.
Wouldn't surprise if one or part ofxa division is sold off to clear down debt as better to be a low debt biz in new economic environment
Very much doubt we'll see £1.20 anytime soon. Management need to prove everything is ok, and growth back on track before this is going to gain any traction in my opinion.
BGF Investment Management continue to buy - they now own just over 11% with 11.47m shares:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/93344879
Since early December they've bought just over 3m shares.
Its been nice for last few weeks.
Should carry on to £1.20 before it has a rest and gathers its strength for another bag.
Moving up nicely today - up 3.3p now. Hopefully BGF's and others' buying have cleared any large sellers.
BGF Investment Management continue to buy - they've bought around another 600,000 shares in the last week, and now have 10.18% (up from 9.57%), or 10.59m shares:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/93314256
BGF Investment Management have been buying - they now have 9.57% (up from 8.03%), or 9.96m shares:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Holdings-in-Company/93264096
Agree with everything that you are saying Rivaldo. On ADVFN the usual members are saying that Mike did a terrible job and only did what any other CEO in his position did using cheap finance for the last 10 years and that performance wasn't extraordinary. I would say that is complete nonsense as each company had access to this said "cheap" finance and did not come close to matching SDI's performance both on financial metrics and SP. He did a really good job, but like you say he may not be the man to properly structure the business and get them cross selling and working well together.
I've been away from the BB for a week, so just catching up comments-wise - the RNS was a surprise to say the least!
Ken Ford is a highly successful and experienced guy, so there are likely to be good reasons for Mike's departure. My gut feeling is that Mike has done a terrific job in getting SDI to where it is today, but that he's not necessarily the man who can extract maximum organic growth from the melange of businesses which have been acquired as he's perhaps always looking for the "next thing" and not necessarily running the existing business in the best manner.
Nevertheless, it shouldn't be forgotten that Mike has grown what was a tiny microcap to a now £67m m/cap company and taken the share price from 10p or less (where I invested here) to the current 60p+ and at one time 200p. And it's good to see Mike thanked in the RNS and Mike being similarly complementary in his comments.
With 5.8p EPS forecast for the year ending soon, and 7.4p EPS for the year starting on 1st May, it's possible that this is now a fantastic buying opportunity on an incredibly low P/E - if those figures are merely met then the share price could double or more.
On the other hand, if you believe Mike's departure presages a further warning then there may still be further pain to come. Certainly the macro background isn't promising. You pays your money....
And down she goes.
Thanks private punter. I’ll keep a close eye on this one as it was one of my favourites but would need sp to drop a fair bit more for re-entry to make up for the risk imo. They have had unexpected write downs on the last 2 updates having said on both occasions that trading is in line with expectations so I’d take whatever they say with a punch of salt. I do want them to succeed, but the comms have been misleading over the last year or so which saw me reluctantly exit. Mike was the critical cog for me but I look forward to your write ups to see how it pans out here and if you are still comfortable holding. Appreciate your website btw, always a good read.
Spoke with the company earlier, expectations remain the same.
Very surprised it has only dropped 5% so far. Needs a trading statement alongside this RNS otherwise it seems that they are hiding something. CEO's don't just quit with no notice, he's been pushed and shareholders really need to know why unless it is just for the general underperformance over the last year or so, even then I'd expect him to work a handover period.
Glad I got out of here when I did. Immediate departure of the ceo with no notice is never a good sign particularly one as critical as Mike. Let’s see if they kitchen sink the next trading update which I suspect is highly likely. Maybe some problems afoot.
A belated warning about investing in AIM stocks this am in the Telegraph/Questor …who published a very favourable article regarding SDI earlier this year / the chief analyst of Sandford de Land with a probable upside of 100% . Better DYOR and keep an eye on the directors who sold a large quantity of the free options they awarded themselves whilst making token purchases .