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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 .
Hi Polinvest, think you misunderstood, I said why didn't they buy AFTER these results? If they had a grasp of the financials they would have known that the market wouldn't be happy with another profit warning so could have got them cheaper. My worry is that it's because they didn't see it coming given they gave an on target update just 2 months ago, so they no longer have a good grasp of the financials. After 5 years of holding I reluctantly sold yesterday due to the misleading updates they have put out twice in a row now. A solid return overall, but sat on my hands too long and trusted the management to deliver long term. It's still at a premium to a lot of other decent stocks, so may have further to fall yet.
JMUK26 director can't buy at least 90 days before financial results publication. This is one of AIM rules.
Oversold. Added for 6k today. I predict at least 10% bounce tomorrow otherwise more director buys to come.
So the directors were pleased to update the market on disappointing investors and viewing attractive opportunities. In an era of high inflation and interest rates they should be selective in pursuing their buy and build strategy. Economic environment has now changed .
Don't know why they didn't wait until after results to purchase, because they were definitely to reassure the market. Worryingly it suggests they thought they were on target or exceeding market expectations and didn't have a full grasp on the actual financials.
Don’t know what message directors token buys were intending to convey to shareholders…..must have known that results would not meet some shareholder's expectations!!
After a good few years of holding SDI, I'm now becoming a little frustrated with management. Every business can have rough patches or growing pains, but as long as that is communicated effectively and transparently each shareholder has the opportunity to assess and evaluate and do what they wish with their shares. At the moment, the management are saying one thing and the business is reporting something else, so potentially some blind optimism is going on. It was only in September that they updated that market to expect results in line with market expectations. Only 2 months later we are being downgraded 20-25% if the revised target is to be believed. How did management not foresee this just 2 months ago? We had the same on results day with Monmouth seeing a huge write-down after SDI had again previously confirmed that they would meet market expectations. I think management need to be more realistic with targets, and be transparent about any issues within the business. Repeated surprises like this really do not help with market sentiment towards their ability. The mark down this morning is probably fair, but I will continue to hold for now as I think it will recover somewhat.
H1 results are pretty mediocre and the outlook sees destocking, hopefully temporary, causing a downgrade for this year.
Cavendish now see 5.7p EPS this year, rising to 7.5p EPS next year. They've reduced their target price to 175p (from 200p).
Cash generated by operations increased nicely to £3.3m and net debt is stable, so there's still plenty of headroom for acquisitions, with one already added post H1 and more "under review" so perhaps coming to fruition soon.
Marked down heavily by the MMs this morning, but looking at 7.5p EPS going forward, with further earnings-enhancing acquisitions likely, at 89p SDI looks very good value imo.
I guess the interims don't quite meet FY24 expectations based on initial trading this morning
Interims will be out on Dec 7th per today's RNS, with an Investor Meet the next day.
Good to see no caveats, so we should be able to expect results at least in line with expectations as previously confirmed in the AGM update on 29th September.
When do you think they will do another buy?
Good to see the CEO buying almost £50,000 of shares at 116p:
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Director-PDMR-Shareholding-and-Total-Voting-Rights/92477058
Nice earnings-enhancing company acquisition announced this morning. £2.4m buys £367k of PBT, so pretty good value.
Importantly, the CEO is staying on post-acquisition, and the acquisition is
"in line with the Group's strategy of acquiring businesses with complementary scientific and technology products, with capable management teams in place and with opportunities to grow further under the SDI Group structure. Peak will join SDI's Sensors and Controls division. The SDI Board considers that there are long term growth drivers for Peak's products and services internationally".
Https://uk.advfn.com/stock-market/london/sdi-SDI/share-news/SDI-Group-PLC-Acquisition-of-Peak-Sensors/92463549
Based on 2022 timings, we should also see Notice Of Results soon, for the 6 months ended 31st Oct and the results themselves, in the first half of December. That will hopefully underpin the “in-line” statement from the Company and as a consequence, fuel more upwards momentum into 2024.
Continuing to rise. Just now there was buying at 112p when the published full offer price was 110p, so quite keen buying too.
Good to see - now up 35% in the past month since the 80p lows.
SDI have already confirmed at the end of September specifically that they expect trading for the current year to April'24 to be in line with expectations, so presumably this has given the market/institutional buyers the confidence to invest.
WorldwideT/Sweetunicorn brings up some valid points in his posts, but the relentless nature of the negative posts does little to reinforce his argument. He just repeats the same thing over and over in an attempt to de-ramp. Previously he was incessantly positive about SDI and continually ramped the shares. Since he went negative on SDI, very little has changed in the business, so either he got it wrong, or he's playing games. I wouldn't take too much notice personally.
As Chelsea says, many of the high valued small caps have come crashing down in the last year. Some of the quality expensive stocks on my watchlist are in a similar position to SDI, having come down from a peak of around PER2 of 20+ to around 10-11 today. I think a pay down on the debt and some director buys would help things immensely here. I'd prefer them to hold off any further acquisitions until they can get the debt down and reduce interest payments.
Definitely a hangover from the £3.5m Monmouth impairment charge imo but also fair to say I think, that a large proportion of Small Caps have dropped, or are dropping and there is a wider market malaise than the drop just being unique to SDI.
WorldwideT/Sweetunicorn on the other board has an opinion on this and on management. However the usual cheerleaders have no comment on latest fall in SP. SDI may be ripe for a takeover at current valuation . Some of the institutional investors over the past year or so may be a little concerned if they have to crystallise their loss’s .
Anyone know why this has dropped so much?
Yep and Stephen Brown now finally has his feet under the table and can begin to positively impact the future of the Company. All good.
Excellent - SDI have confirmed that they expect trading for the current year to April'24 to be in line with expectations.
It's encouraging that they already feel confident enough to state this halfway through the financial year.
And it's also good to see relative to the adverse trading statements being issued by so many other companies in the current market.
SDI are on a P/E of 14.4 falling to just 13.1 for the year starting next May. And this will fall further with any acquisitions prior to the year end.