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Great summary...the efrect that Perpetual and CRUX had one the share price was magnified due to the fact that out of the 80mln shares in issue they held essentially 12% BUT effectively was about 25% of the free float (because CEO has 44% etc
Pretty sure Rox intention is to effectively steal this on the cheap, fine tune it into a proper business - something Curren clearly wasn’t capable of - and re-list/sell off in the US at many multiples of the current value. I’ve bought in at the low 3’s and sure there’ll be an opportunity to at the very least double that trade. For the longer term if one was comfortable enough to hold stock, even in an unlisted company, the chance of doing 10x that is a real prospect. As has been said here, and many other places, AIM isn’t functioning right now, it’s probably the worst I’ve ever known it in 3 decades of trading and companies are exiting daily because support and liquidity is almost non existent. There is a real opportunity here to take advantage of that. Perpetual, CRUX etc have had to liquidate and that is why we’re where we are now.
Don't know if you saw this, those was posted about 2 weeks ago :
Neuralink could be one of the
interested parties circling embattled British chip maker Sondrel. Recently it is believed that Sondrel solved some of Neuralink problems with their recent human brain implant which other chip suppliers could not solve. Neuralink Corp. is an American neurotechnology company that is developing implantable brain–computer interfaces, based in California and founded by Elon Musk and a team of scientists and engineers.
Neuralink had recently livestreamed its first patient implanted with a chip playing online chess.
By way of context, Sondrel is one of only a handful of firms capable of supplying the higher-spec chips required, others are in Asia but are considered vulnerable to Chinese interference.
Excellent summary
In similar situations MEN has done x 4 (i have now sold) and REDX x 2 ( I hold)
I believe SND can easily get to 10p-15p particularly now that CRUX asset mgmt are now out and the resulting bounce back was evident to be starting on Friday
For first time in 2 weeks there was buy limits in place into the close
Thankyou Smart Money
I agree and sorry its fallen so much for previous holders
What REDX, C4XD SND etc had I common was the fact that
1) they were needing £10mln+ per annum of funding
2) had BOD and /or II holding majority of shares which left private investors at the bottom of the heap
3) funding on this scale (last 5yrs) with no sign of profits/breakeven was unlikely yo be indefinite
But I agree, the SND story is far from over
With regards to the delisting proposal, I absolutely get it. AIM is not only expensive (£500,000 per year to maintain a listing), it’s completely broken and closed. And the lack of UK institutional investor interest in tech stocks makes delisting an even more compelling proposal given that Sondrel could quite easily IPO on the NASDAQ market at 20x its current market cap, and have access to a broader universe of investors and, accordingly, a larger quantum of future funding to execute their strategy.
And the flight of good quality, UK tech (inclusive of biotechs) stocks to the private sector (unlisted) and, eventually, to Wall Street, is equally astonishing. However, rumours surfacing last week in the City indicated urgent regulatory modifications being fast-tracked by the UK financial watchdog to stem the exodus and enhance the country’s appeal for business and investment. So it’s worth watching this space.
https://www.ccn.com/news/business/wall-stree-stock-exchange-undervaluation/
In the meantime, Sondrel shareholders have the luxury of time before a definite decision, and timeline, is provided for the delisting proposal which, for all intents and purposes, could be reviewed on a strengthening share price (closer to the TP). Who knows?
What I do know is that, having been invested in SND for the last 14 months, I strongly believe this is an incredible opportunity to buy into a remarkable business at bargain-basement prices.
Or put another way, the current market cap of £2.9m (3.5p per share) represents a glaring undervaluation in the market, and which is likely to be corrected at pace.
AIMHO.
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Now, by way of background, and like fellow AIM-quoted nano-caps ETX, REDX, C4XD, and MEN, the announcement to delist from AIM initiated a statutory liquidation action from Sondrel’s institutional investor Perpetual. This, alongside panicked private investors, sent the company’s shares crashing from 11.2p to 3p. However, once Perpetual had notified its exit, and once Lansdowne (another II) had announced their reduced position, value investors swooped-in on the 11 and 12 April 2024 sending the shares up from 3p to 3.5p. I believe this is just the start of the recovery as the shares are currently grossly mispriced.
And with the stock overhang (6,559,632 shares or 7.5%) now removed, the share price should stage a strong move to the upside as the market finds an appropriate value of the company. The share subscription at 10p per share sets a new floor for the share price and should serve as the first target ahead of a comprehensive rerate of the company’s shares.
House Broker Cavendish slapped a conservative Target Price for the company’s shares of 20p per share back in February 2024 based on Sondrel’s UK peer group’s EV/Sales of 2.2x. This target still stands.
Nevertheless, and even at 20p per share, Sondrel’s valuation is paltry when compared to her peers in North America. Last week, Hailo Technologies Ltd, an Israel-based artificial intelligence chipmaker, raised £96m in funding — the latest sign of US investor enthusiasm for bespoke businesses manufacturing advanced chips that can support the intense data processing needs required to develop AI tools.
Put simply, the world is going to need a lot more chips if artificial intelligence (AI) is going to become a ubiquitous technology. And Sondrel is set to play a big part in that transition with its higher-spec chips built on the most advanced semiconductor technologies. It recently unveiled its latest chip – a chip designed on a 5nm process node with more than 50 billion transistors!
https://industrialnews.co.uk/sondrel-poised-to-support-the-evolution-of-intelligent-cars-with-ultra-complex-chips/
The real kicker here, however, is that, the ultra-complex chip shortage is not going anywhere soon and, with data from SIA showing that a finished chip can take up to 26 weeks to manufacture, the investment case in Sondrel should remain strong for at least the next seven years.
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Yes OTP
The cash flow difficulties have been well documented BUT here at £2 5mln and with the parasitic ROX offering g to fund at 10pence but then triggers the takeover code the surely 10pnis the floor
The main cause of the drop was that with very few shares in issue and 44% held by the CEO who supports the ROX move it means that ehe CRUX sold their whole 8%it had a disproportionate effect, combined with other sellers since the March 28th announcement
CRUX finished selling on Thursday with a large after hours £110k sell, myself and Rocket both believe those shares have gone to another entity
Also about 2 weeks ago In one day there was 15% of the shares traded and yet no TR1
Jamrock et al, if the stock market was the perfect arbiter of value, then anomalies such as Sondrel just wouldn’t occur.
The reality is, the stock market is often wrong, and sometimes very wrong. The reasons can be many. But human psychology and poorly informed participants are often the causes.
This is not always a bad thing as it creates substantial opportunities for the shrewd investor.
So, what’s the story here?
Sondrel, a leading provider of ultra-complex chips for leading global technology brands, and whose tech is reputedly part of Elon Musk's Neuralink™ brain chip, recently advised the market of the following:
• It had secured some interim financing with private equity firm, and cornerstone investor, ROX Equity Partners for £2.9m whilst it finalises a fundraising for an additional £5.6m, also with ROX.
• The fundraise will be fully subscribed at 10p per share. That’s a staggering 185% premium to Friday’s closing price of 3.50p per share.
• The £2.9m interim loan will be convertible into ordinary shares, at the discretion of ROX, and at a conversion price of 10p per share – a 185% premium to Friday’s closing price of 3.50p per share.
• Post the fundraise, and to finance the company’s ‘Transformation Plan’, ROX has agreed to provide additional funding of up to £1.5 million which will be subscribed at 10p per share – a 185% premium to Friday’s closing price of 3.50p per share.
• The Transformation Plan features the appointment David Mitchard (ex-Director of Maritime Services at BAE Systems) as interim CEO; the appointment of Graham Curren as CEO of Sondrel Ventures (a newly-established subsidiary of the company which will focus on strategy and business development); the appointment of two non-executive directors; and the proposal to delist from AIM. The AIM cancellation (delisting) resolution will be put to shareholders within six months of completion of the fundraise.
• The company has landed a significant order worth an estimated £18m to design and supply a next-generation video processing chip for high-performance professional video streaming solutions by an unnamed customer.
• The company has observed a strong demand for its 3nm design services for custom ASICs. 3nm is needed for the next generation of products, particularly AI-based designs that require immense compute power to process the huge amounts of data being processed.
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No worries, I’d suspect they would be interested also if the previous links are there and neurolink see a value .. not sure if SND takeover would fall under NSI and neurolink would have to go through that (not that it wouldn’t but can take some time). Do think there will be some sort of recovery play, if a buyer comes in shortly then could be a steep rise.
Thanks onetimepost
With SND having Tesla as it's client and with SND helping Elon Musks Neuralink company in Feb it surely puts them in the frame too ?
Sounds like talking about ARM who softbank purchased a while back (20 plus billion valuation I’m sure) sounds like it would interest them.. synergies is the key word, if they can add value or see it.
Thankyou Phrontsist
Who are ARM please ?
Real information about thinking of SND staff/director shareholders is non existent.
A hedge fund or financial operation is not going to buy SND because key staff will wander off to greener fields.
A technology company takeover from abroad will also have difficulty holding the business together.
A microelectronics company like ARM could easily make a success of a Sondrel takeover. There is synergy there and Sondrel staff would see a good future in staying.
Plus ARM and Sondrel are geographically close.
Phrontist
Whenever company says its going to potentially cancel share price tanks, but could be a great buy opp as cancellations need majority vote and no actual specfic date has been set here as of yet beside 6 months and needs majority shareholder approval ....DYOR
So if it’s funded at 10p why has the share fallen to 3p.
Am I missing something
Very much q buying opportunities as they are being funded at 10p by the long term funder BUT in 6mths they will then vote to stay listed or go private
All explained in the March 28th RNS
Hope that helps
In similar situation MEN has done 4p to22p and REDX 4p to 9p
I know nothing about this company but noticed a lot of buying. Can someone update me so I can understand the fundamentals as to how it fell from 75p to such a low share price.
Is it a buying opportunity!
Hence the possibility of a third party entering the fray
Could be 6 months away the share very cheap now
Not sure your question Onions ?
So what is happening then Einstein?
Elon?
That's not what is happening.
It's all in the 28th March update
If they have agreed to raise funds at 10p why sell at 3p? The Ceo will one day want out and best to just stay a shareholder and wait it out rather than sell for 70% less than placing price coming