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Hmmm very interesting!
Puts in £20k…
Agree. Shareholders have been stitched up royally. Rox wants all. Wouldn't surprise me if they were scooping up all the existing outstanding shares they can grab at 3p with the share price deliberately sabotaged by the announcement to delist in conjunction with the fundraising.
Absolutely astounding.
09:55
If two large shareholders hang onto their holding leaving a small number for us plebs, then the SP will rocket upwards.
P
“The company has entered into an exclusivity agreement with ROX on 5 March 2024 granting ROX the right to participate, ALONGSIDE EXISTING SHAREHOLDERS, in the Fundraise.”
“Under the terms of the agreement, ROX has confirmed, depending on the level of existing shareholders' participation in the Fundraise, ITS WILLINGNESS TO SUBSCRIBE FOR ALL THE NEW SHARES IN THE FUNDRAISE.”
Or put simply, assuming zero participation from the current cohort of institutional investors, ROX Equity Partners are ready to subscribe for all the new shares in the fundraise.
Longfell, your rationale assumes zero participation from the current cohort of institutional investors in the forthcoming share subscription. This is highly unlikely as they would want to protect their positions.
My speculative prediction is that, ROX end-up with 25%, Curren with 30%, and the existing cohort of II increase their holdings accordingly.
Either way, there’s nothing to stop a hostile approach from an opportunistic player.
AIMHO.
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Edging up - someone loaded up with £20k's worth, surely not just punt money.
Great posts SM. However what bothers me here is a stench of corruption. Between Curran and roxi they seem to have a stranglehold on the company. I don't believe they have the best interests in the company at all and with the % of shares they own can lock out any potential bidders. Am I wrong?
Jamrock, further to my post, here are some of the company’s current fundamentals:
• City heavyweight David Mitchard has been appointed CEO of the company. Mr Mitchard, currently a Director at BAE Systems Integrated System Technologies Ltd, comes with a deep understanding of complex technological environments like Sondrel’s, and an impressive track record of business-building, stakeholder engagement, and hard-nosed leadership.
• The company’s ultra-complex chips offer significant scale improvement when it comes to latency, privacy, security, and increased efficiency; making it one of only a tiny handful of companies out there that are able to do this.
• The company notched-up a Compound Annual Growth Rate of circa 20% per year for 22 years with no external funding!
• The company’s medium-term target of annual revenues of £100m remains intact.
• Current production pipeline sits at £165m of prototype and design opportunities, of which £90m is booked in the US with 18 potential customers.
• The company has landed a significant order worth £18m to design and supply a next-generation video processing chip for high-performance video streaming solutions.
• The company has landed a further four new orders with two existing customers and two new customers. These contracts will generate a combined revenue of £0.75m in the current financial year.
• The company is currently in advanced negotiations for significant new business. European and US market demand for the company’s services remains strong.
• The worldwide semiconductor market forecast to reach $1 trillion by 2030. ASIC market alone is expected to make up 40% of that market.
• The company’s focus is on AI, Automotive, and High-Performance Computing.
• The company’s unrivalled expertise 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, etc.
• The company has a strong institutional investor backing in Otus Capital Management (7.28%), Joh. Berenberg, Gossier (4.66%), Herald Investment Management (4.16%), and Lansdowne Partners (4%), whilst an estimated 17% of the stock is currently held by private investors.
• House Broker Cavendish has a Target Price for the company’s shares of 20p per share based on Sondrel’s UK peer group’s EV/Sales of 2.2x.
• Financing is currently secured with private equity firm Rox Equity Partners at 10p per share – a 180% premium to yesterday’s closing price of 3.60p per share.
AIMHO
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Sorry it said 10.25p not 10.5p on IG. Anyone else see it.
Showing as 10.5p for some reason
Can only wish lol
Bounced nowow
Jamrock, if your investment strategy is predicated on the signals emanating from Britishbulls.com then I strongly suggest you have a re-think on your investment here, or any other value stock that requires patience and conviction in the fundamentals. Unless, of course, you’re a Day Trader? In which case, and as you probably know, time is never on your side. And no matter how much time you spend trying to decipher intricate patterns and strategies, the odds of being correct are notably slim.
Recent research by the FT's market team revealed that even the most skilled professional Day Traders were correct only 47% of the time, while average traders fared even worse at 6.5%.
By the way, and just in case you were unaware, the aforementioned site is commonly referred to as ‘British bull***t across most brokerage houses for its staggering inaccuracy. And Zak Mir’s daily ‘pearls of wisdom’ is not far behind that.
As for me, I have, and always will be, a Value Investor. And for a good part of my 25 years in the game, and working for a few start-up brokerage houses in that time, I have largely done well on this strategy.
Remember, risk comes from not knowing what you’re doing.
And in the realm of AIM investing, conviction can be a double-edged sword. Leverage it properly, and it becomes your strongest ally, leading you to investments that can alter your financial course. Misuse it, and you can find yourself drowning in a sea of losses.
Thus, the Value Investor's biggest adversary isn't the unpredictable market, but rather their own reflection. The fear, greed, doubt, and impatience it mirrors can be more detrimental than any bearish market trend. That's why mastering the ability to hold firm to high-conviction investments is crucial.
Howard Stanley Marks, the serial value investor, provides an essential nugget of wisdom here; In an era where social media often spreads baseless rumours or inaccurate assessments of stocks, it's easy to be swayed by public opinion. However, a true conviction investment is one where you have an unshakeable belief in your position, even when the consensus is against you.
Jamrock, do you have an unshakeable belief in the fundamentals (of Sondrel)? EVEN WHEN THE SHARE PRICE IS NOT BLUE? If you do, then the noise emanating from Britishbulls, ZM, or any other Day Trading platform, is utterly immaterial. Which means, you don’t need to keep tracking the share price every hour. Just be patient. The fundamentals will eventually come through. However, remember, NOTHING EVER GOES UP IN A STRAIGHT LINE.
AIMHO.
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This is the problem. We don’t know if a bounce is truly the bottom. Usually most bottoms are a double bottom at least before the real bounce
Https://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=SND.L
After a promising start this week the British Bulls have today issued a short recommendation which is a bit worrying. Shame because I really hoped we’d be above 5p by now.
Thanks for your reply. If I could ask Curran is why will there be no facility to sell as with the likes of redx. It's almost purposely trying to wipe out all the small investors.
Longfell, I haven’t decided yet. I already hold shares in three unlisted companies, so I am not unfamiliar with that situation. However, those are pre-listed (i.e. IPOs to come) rather than delisted, so are a bit different. I don’t have any basis on which to judge ROX and Curren by, other than what we have been told. It’s been presented as a fairly low key thing to date (i.e this is what we’re planning and we want an orderly transition) and Curren has seemed a fairly strait-forward chap to me in the video calls he’s done, so I’m hoping we may get the chance to ask him to address it directly before we have to decide. Well, of course, I’m actually hoping we don’t have to decide at all, because another party makes an offer they can’t refuse!
No I do not.
Rox with probably have 75%of the company anyway,(with a few more monthly cash loans and the big placing). They can do what they want. Any existing shareholders will be obliterated. There are ways and means..further dilution etc.
Only consolation is that the directors will probably be obliterated too as Rox will take everything imo.
@Sorcerer, thanks for your insightful posts. I was wondering do you honestly intend to hold these into a delisting? I'm quite concerned by the goings on here. The board seems to be colluding with Roxi here to steal the shares for nothing. Once this is private anything could be done and can you honestly trust them?
Curren has made a balls up of running a public listed company - tech guys often do - has lead the company to the brink and now has little choice but to take what’s on offer. 55p IPO 18 months ago, 3p today and near bust - what a muppet. In return he still has a shareholding and now gets to run his own Sondrel ventures sub - or in other words he’s been offered a role where he can doing techy things without doing any more damage and harm to the grown up proper business. That’s the brutal truth. Rox will turn this around and sell up, for multiples and maybe even vast multiples of its current value…
The puzzle for me is why the principle owners of the company are ceeding control and effectively selling the majority of the company( the exact proportion of the their ownership is increasing with every monthly fundraising as well as the big placing) for such a pittance. Rox is effectively taking ownership for 10m ( approx 100m shares at 10p ( and more besides if they are picking up millions at 3p ish after the company announced a delisting at the same time as a fundraising??????? and thereby trashed the sp ????????
You can see why companies are leaving aim and why trading is much lower than it was with the way they conduct themselves here with no regulation
So as a novice in this share can some explain why it’s struggling to pass 4p with all the positive tone. I have took a small punt here based on !. I truly stumbled on this and only hope all pans out. Am I correct that shares are to be purchased at 10p!.
Thanks Smart Money - you’ve made some very considered posts here over the past couple of days.
The following caught my attention on ROX’s website “Our approach hinges on forming strong partnerships with visionary management teams and co-investors to create substantial value by anticipating disruptive trends in carefully selected fields. Through shared financial interests, we build robust alliances, valuing these relationships as pivotal to our success.”
SND obviously perfectly fits with their strategy, but I also thought the emphasis on partnerships and co-investors was interesting.
I’m still fully invested too and feel there’s a lot going to happen in the coming weeks. Not least the next contract announcement. We know there was at least one more significant US deal in the final stages of negotiation a month or two ago, so that could drop any day now. How is the market going to react when another deal that could be worth $20m to $100m lands?
Take C4X Discovery, Molecular Energies, and Redx Pharma for example; a week after their delisting announcements, the head honchos (Clive Dix, Peter Levine, and Lisa Anson) swooped-in and picked-up stock at ‘fire-sale’ prices, and after unsuspecting private investors lost their shirts through panicked sells. Utterly reprehensible! But that is capitalism for you. And the stocks are now trading significantly higher than their ‘delisting’ trade prices, despite inching closer to delisting. This means that, investors are now prepared to hold privately marking a significant step change in the investment culture.
So private investors are not going to fall for the copper-plated nonsense being spouted by some of these greedy actors who want to steal the business under their noses.
And Sondrel, which is incredibly undervalued across all industry benchmarks, and probably the most undervalued chip maker in Europe, is going to trump all these companies and change the narrative. Watch this space.
And yes, I agree – this is what makes the current situation with SND so interesting.
AIMHO.
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Sorcerer, your description of Sondrel as a business with “market leading capabilities, contracted future revenues of $200m, and a strong sales pipeline in a pivotal growth industry”, is bang on the money.
The company’s ultra-complex chips offer significant scale improvement when it comes to latency, privacy, security, and increased efficiency; making it one of only a tiny handful of companies out there that are able to do this, and which explains why Elon Musk’s brain implant start-up, Neuralink™, called on the company for its expertise in designing its brain chip.
https://www.thisismoney.co.uk/money/markets/article-13062751/Tech-minnow-Sondrel-doubles-value-reports-played-key-Elon-Musks-Neuralink-brain-chip.html
https://markets.businessinsider.com/news/stocks/elon-musk-neuralink-value-tech-chip-stock-trades-ai-brain-2023-6
Now, let’s just think about that for a moment. Why has a $5 billion-capped US biotech sought assistance from an off-the-radar British nano-cap? What kind of expertise does it have that is clearly out of the reach of the thousands of US chip makers accessible to Elon Musk? And what’s the inherent value of this expertise/business?
The answer to those questions is the reason why institutional investors Otus Capital Management (7.28%), Joh. Berenberg, Gossier (4.66%), Herald Investment Management (4.16%), and Lansdowne Partners (4%) are still here, and why an estimated 17% of the stock is currently held by private investors.
But a £3.3m market cap (3.85p per share) simply does not cut it!
Which is why I remain fully invested because, as you rightly put it, there are several possible outcomes here; some pretty spectacular, but none that is likely to value the business anywhere close to where it is today.
And a quick glance at the recent ‘delisting stocks’, and how they have performed since their delisting announcement, paints an interesting picture of a fast-evolving, private investor perception of these stocks. Put simply, nearly all the stocks have staged a strong recovery meaning that, private investors are prioritising value over exploitative ‘engineered fear’ by some greedy actors within those businesses.
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