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There have been a couple of references on here recently to 10p being a floor for any kind of takeover offer, but I personally think that kind of number is the least likely outcome here.
We already know that ROX want the company to delist, so they have a plan to take the company private that would work very well for them thank you very much. It's not clear what the out-turn for any smaller investors who held onto their shares would be in that situation - they could find themselves squeezed out by ROX and Curren (who would then have close to 75% control) steamrollering through new share issues in a way that disadvantages smaller holders and dilutes them out of the picture. Or, it could simply be that smaller investors are effectively shackled to Rox and Curren until they decide to create an exit event (sale or re-listing), which could be done quite quickly if SND grows as we expect, or it could take 3-5 years or longer. Neither is a very attractive proposition for most small investors, as they either lose most of their money, or have absolutely no control over when they get their money back (although in the latter scenario, they could do very, very, well if there has not been the dilution that investors fear). What we don't know is what ROX and Curren intend, or how much their reputation with smaller investors matters to them (either personally, or commercially).
There is also a further option that has also been suggested - namely that Rox might consider an additional offer to buy out any remaining smaller investors who wish to sell ahead of the proposed delisting. Not sure how likely that is, but it would certainly provide for an 'orderly exit' and would presumably be pretty well received, given where we are today.
And then there's the other possibility - a new player comes in and makes an offer for the whole company. This is what I personally believe the changes to the ROX deal were designed to protect them against, but if it happens, I think we can be pretty certain that it wouldn't be at anywhere near 10p. Why would ROX accept anything like that kind of offer, when all they have to do to make shedloads more than that is take it private and watch the value grow exponentially? But that doesn't mean that they wouldn't be willing to consider an offer (they will likely sell within a few years anyway), it just means that any offer needs to be attractive enough to give them enough of a return to cash in (risk-free) and move on to the next deal. I have no idea what that would be, or which / how many parties might be interested in making a bid, but you'd have to imagine that it would need to be several multiples of 10p to make it more attractive than paying £8.5m for 50% of a business with market leading capabilities, contracted future revenues of $200m and a strong sales pipeline in a pivotal growth industry. That's what makes the current situation with SND so interesting.
Good post there. it would tally up that it would be an U.S. Company that would buy SND. I believe that is why the CEO has stepped down to open another private Company. He will obviously take some custom from SND over a period of time.
Everyday more buys than sell by 4-1 so surely it must break higher at some point if supply and demand is a formula
ROX understand that, it’s only a matter of time before one of the many circling predators makes a move on Sondrel – especially at the current lowly market cap (4p per share) which considerably underrepresents and undervalues the business. So open season it is. Or as our North American brethren aptly put it – Game On!
But word of caution; don’t take your eye off ROX, who are renowned for their ‘surgical’ strikes:
https://www.finextra.com/pressarticle/94965/silverbridge-acquired-by-uk-pe-firm-rox-equity-partners
https://itweb.africa/content/DZQ587V8oKJqzXy2
Thus, Sondrel is fast growing into a big pay day for the private equity firm.
Howard Stanley Marks, the serial value investor and founder of the multibillion, wealth management firm Oaktree Capital Management, once opined that:
"All intelligent investing is value investing; acquiring an asset for less than its value means seeing what everyone else sees and thinking what no one else thinks."
AIMHO.
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Avid chartists would’ve spotted the trend line on the Accumulation Distribution Indicator (ADI), for the Sondrel stock, moving steadily upwards. This bullish signal points towards investors actively accumulating stock.
During yesterday’s trading, the ADI rose, indicating that accumulation is taking place with a possibility of an upward break out. To this end, and experienced traders would know this only too well, it’s pure folly to sell in this phase as the MM’s will repeatedly drop the stock (triggering ‘stop losses’ to flush out day traders) to allow them to gather scarce shares, only to release the price back up to its optimal (reflective of supply and demand conditions) point.
That aside, and as indicated in my previous posts, the company’s shares are changing hands at a significant discount to both its Enterprise Value (£10.1m or 11.5p per share) and it’s ROX-underwritten share subscription price of 10p per share. And that’s before we talk about the order book – currently estimated to sit at circa £165m.
For the record, ROX’s key strapline is “Long-term investors in disruptive technologies.” This accurately describes their modus operandi and also helps shareholders understand why they’ve taken a material interest in Sondrel – a company that is targeting a £230bn market, and one that is growing at circa 20% per year.
And only today, TSMC, one of Sondrel’s key strategic partners, advised the market that, first-quarter profits were expected to rise 5% on strong AI chip demand. This is after it received a $11.6 billion grant (a combination of direct funding and loans) to establish an advanced chip manufacturing facility in Phoenix, Arizona.
https://www.reuters.com/technology/tsmc-first-quarter-profit-expected-rise-5-strong-ai-chip-demand-2024-04-16/
https://www.bobsguide.com/tsmcs-receives-grant-to-leap-into-us-chip-manufacturing/
But I suspect the real attraction here, for ROX, is the company’s unrivalled expertise (130 IC Engineers and a staff retention rate of 95%) in the design and manufacture of ultra-complex chips that has allowed it to sign-up some of the most admired blue-chip brands in the world as it customers – Apple, Google, Sony, Samsung, Tesla, ARM, Siemens, Mercedes-Benz, etc. These companies turn to the Reading-based nano-cap because they want chips that are smaller and more powerful than off-the-shelf varieties, use less energy and stay cooler for longer. And demand is soaring, as technology becomes ever more sophisticated.
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Think we will start to see some moves upwards now
End of June?? I was thinkingnend of week.now that no-one heavy selling
Company received loan from other company, means ,to me, business is viable, will generate cash, so I m expecting a revenue increase, we might hit 9-10 towards end of June, more than likely
Any thoughts for today
Not a problem Wado
L
He really is an ambulance chaser
He said same on MEN ( 4p to 22p and I then sold)
REDX 4.5p and now 9p (I hold)
SND already up
RQIH next as for £10mln cap they have a £400mln asset sale coming to pay off debt and leave with probably over £50mln in cash
Still great buying so hopefully tomorrow is another positive day!
Currently dropping. But withnthe way demand was this morning im sure a huge bounce is imminent. And there is still thenmatter of a possible big buyer who needs to disclose a TR1
Will be a good week i believe
I'd be surprised if he had any kind of b@lls let alone a crystal ball
Dummy run to buy more. NT. Cant be many in float as it was only for £1k worth.
Just borrow petroinvestors crystal ball. I mean he turns up day in and day out on high rising shares with exactly the same message each time. Don't know how he does it. Frigging genius!
If only we had a crystal ball
Most.of the people who come here saying that, wish for a lower entry.
Got a nappy ready to fit this baby. Wait until it releases its S@*T....
Ready for next leg now metro has woke up.
Most of the people who are posting non-stop here are traders taking their profits, and the newbies end up getting scammed and left holding the baby here.
Strange UT at a premium
Always cautious our ZAK, that will be surpassed quite easily once mm lets it wriggle.
Https://zakstraderscafe.com/bulletin-board-heroes-april-15/9172/
Zak is suggesting 5.75p looks like a near term possibility!
Will he be correct!