Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Continued...
On the business front, Simon again walked us through the system contract delivery cycle and 'bundling' of multiple interlinked phases. He sounded confident that existing facilities offered enough headroom for the resultant potential 'lumpiness' of cashflows.
In terms of MDA pipeline, there appear to be 3 x liveish prospects aggregating $ 140m (pls correct if I misheard this); as to transceivers, Simon referenced the US market (18m of the 28m leisure craft in the world?) and a newly appointed sales person there.
More generally, the Ukraine conflict and migration towards Europe seem to be moving SRT's product range up the political agenda, even (again, if I understood correctly) the UK was showing more interest than hitherto.
Last observation : very informative and enjoyable, meeting both the SRT 'team' - Directors and staff - and my fellow investors.
It's a shame only 20 -30 turned up...and the absence of 'suits' (representatives of the City) was a bit disappointing : SRT still seems to be under the radar, if things go to plan, I'd expect to see more institutional presence at the next AGM!
E & OE, NAI, DYOR, AIUI etc etc
ATB
My first AGM and visit to the 'command centre' in Midsomer Norton.
Overall impressions positive. My observations :
- informative walk-through the premises. All staff 'primed' and 'on message'.
- connectivity issues (Q w/Cardiff?) meant no interactive display took place. Unfortunate, but- if this can happen here- it's a salutary reminder of the technical and logistical challenges there must be in less developed environments;
- Nexus display v impressive, esp. the 'Apple-like' focus on quality, not just technical (H/C tolerance and functionality) but also 'personal' stuff like clarity of visuals and the 'feel' of button operation. Latency is critical to the experience. Unit retail price ($ 1,500) seems high but - in context of the target market - immaterial. It will also allow good margins ('blended ca. 40%' we were told later).
The unit can handle - if I got this right - up to 30 connections (a mix of interactive communicating devices anywhere on board and passive trackers like AirTags ), with commercial or leisure applications.
One feature in particular - a 'man overboard' instant alert (and location) when a device drops out of the pre-determined base unit perimeter - seems a compelling argument to convince even the die-hard traditionalist VHF user ('this is your Captain speaking') to switch over to Nexus- whether it helps save a deckhand of a fishing crew or a child (or tipsy adult) on a leisure boat.
There'll be a soft launch at an upcoming exhibition, with 50 or so units provided to a representative 'target market', with a mid 2024 target general roll-out.
For ATONs, there's a similar Japanese-like policy of 'continuous improvement', tweaking the offering with incremental features/add-ons, eg allowing some remote maintenance diagnostics.
The software team were conspicuous by their absence - a couple of rows of empty PC banks as 'place-holders' for staff all working from home.
The hardware /R + D area looked OK to this layman (and my more techie son) and I liked the investment in an owned testing unit to reduce/mitigate somewhat dependency on Flextronic.
The AGM business was handled well and the presentation + Q and A and conversations throughout the day gave me a more nuanced understanding of the business, in particular the 'soft' info re potential interdepartmental 'turf wars' (Navy vs Coast Guard vs Fisheries, for instance; 19 fiefdoms in Indonesia) and the domestic politics - in Philippines - of commercial vs 'artesanal' fishermen.
There's a lot at stake (fish both as food / livelihood and for export potential : a possible doubling of exports (USD 1 Billion+) if fish are 'EU compliant' . Pres.Marcos seems to be taking a 'hands-on' approach to sorting this out, with the current legal wrangle hopefully resolved in the next few months.
Customers often want a snazzy Head Office for their command centre, there may be a bit of 'mission creep' - certainly time invested - by SRT in massaging egos.
Contin
Possibly because a large section of the Conservative party are very much in favour of mass migration as they think it boosts GDP . Never mind it wrecks everyone's per capita GDP
Can I ask any LTH's if they can clear up something for me - why haven't SRT been able to secure any major contracts (that I am aware of) with HMGov? Being a UK company and all that and given boatloads of traffic across the Channel and so on. Seems to me there is an open goal there and would help foreign sales - "if your own government won't buy your kit, why would we?..." as well as potentially being logistically easier to deliver on.
Can't say I disagree Hardboy! I also met extrader who was also positive and a LTH. I said to several people " Can't quite see what can go wrong now" and neither could anybody else I said it to! All agreed we were poised for success. There was a round of applause at the end of the meeting.
Soft launch of Nexus soon and 50 organisations around the world, including the RNLI, are going to be given a Nexus for testing. The idea is that it will be used in various testing conditions by demanding people. Makes sense to me. Onwards and upwards folks
Attended the AGM - had the honour of meeting Truro Trader. SRT looked after us very well and gave a very informative tour and presentation. I think both Truro & I came away even more optimistic about the future than before.
Discreet badges might be handy :-)
Hope So - I'm coming with a friend who's also a share holder. we're both in our 70s (I like to think I don't look it and am only just there.) I'm tall and used to be blonde. My friend is more average height and usually bespectacled.
The AGM will not be broadcast (difficult to do properly apparently) hence the webcast. Shame about the SP but the outlook is very promising. I too will be at the AGM. Might meet?
Hi Truro,
Yes I've noticed we fen get a short boost from webcasts, today is was a few hours only.
I can't be bothered to check back at the webcast but I think Simon said he wouldn't be there at the AGM. That would explain the webcast/AGM proximity but not coincidence.
Hoping to make the AGM (it's an early start for me, and sure we'll learn a bit more there.
SRT Marine Systems – These Shares Could Double
https://masterinvestor.co.uk/latest/srt-marine-systems-these-shares-could-double/
Hardboy,
In the past the SP has often had a few pence rise following the webcast. My guess is that both the webcast and the AGM will be good news and a good chance of an associated rise!
Not to sure why the webcast is just a couple of days before the AGM though? The AGM is usually filmed and broadcast anyway.
Monty I don't really want to get into an argument about something fairly trivial, but you said:
"This will be range bound between 52p to 58p for a year or maybe more"
I said the share price was more volatile than that and it would trade outside that range over the year. The sp is now 47.5 - way outside your predicted range and you are claiming to be more right than me. You've not gone to the Putin/Trump/Johnson school of truth have you?
let's all see what Simon has to say on Friday
Monty,
Don't think you've quite taken in the value of the recent contracts in relation to our past. The VSP is now really starting to build. It's been a long old haul. This financial year should see the breakthrough into profits.
The star of the show is the Marine Domain contracts but the transponder business is also making strong growth now. Last (and also Least!) Data sales should become meaningful in the next financial year.
Our costs are largely fixed with the main exception being wages. It won't surprise me that in the next 3/5 years the transponder and Data business's will actually provide the revenue and profits to run the business on their own.
If I meant tomorrow, I'd have said tomorrow.
Hardboy - Data is showing me to be lot more correct than you pal.
Revenue is nothing without bottom line profit sooner or later. Look at THG, investors thought it would very profitable very quickly was 800p now less than 100p. I might be deluded, my fair value estimates way above current SP might be too high. (Old adage “Revenue is vanity, profit is sanity”. Can the revenue create a really good bottom line, I hope so. But I will be doing is looking at the cash burn vs the bottom line and the EPS. Not emotionally ramping what are very good RNS’s but till it passes break even it jam tomorrow, when does it’s jam on the bread. The MM’s are doing their best to keep the SP at 50p to match the cash raising whilst they wait for the next results (Note the nasty spread).
That's a week tomorrow. Strictly speaking next Tuesday is tomorrow.
They usually release an update the morning of the AGM
SRT's AGM next Tuesday
My mistake.
Got mixed up with another of my holdings, SMS.
Half year results tomorrow.
Let's hope that they increase the S/P.
Monty:
The directors have a sense of humour - several years ago at an AGM, aware of the accusation of Jam tomorrow they gave all attenders a pot of jam. (And it was very tasty.)
As for your projection of it being range bound between 52 & 58p for a year or more. I would say you're in cloud cuckoo land - even if the next year's share price average as somewhere between those 2 prices - it does not need a lot of research - just look at the graph - it is a volatile share and can do that range in a week. Also this is driven by news - with a £1.4b pipeline, there is a lot of scope for very significant news to come in the next year. And that news will take the sp outside your range.
And here's a link to the whole story, mentions in passing that UK uses Portuguese Tekever drones.
'How are the mighty fallen' ;-<
https://edition.cnn.com/interactive/2023/07/uk/migrant-crossings-ai-small-boats/?utm_medium=email&utm_source=CampaignMonitor_Editorial&utm_campaign=LNCH%20%2020230816%20%20House%20Ads%20%20SM+CID_9db41cb1383867e8e61805a4eb1c3772
ATB
Hi Monty, A little pessimistic view perhaps? The sales team are, unusually, not proactive. Their initial decision is to decide which enquiry's are worth engaging with. Do they actually have a budget? Are we talking to the organ grinder? Is there a need that we can address? There are other criteria as well. The £1.4 Billion VSP is doing exactly what it says on the tin. Verified Sales Pipeline.
I don't know how the times article was actually initiated but I would be surprised if we called them. I would put money on the Border Force/Government contacting us.
As for Jam tomorrow - well yes. I reckon it's the next financial year that will deliver this. My guess is that this half year will match our full last year. The only uncertainty is the ability to deliver the escalating order book. I'm confident they'll manage it !
Cheers.
Interesting company, very hyped to make sure the 50p capital raise was fully subscribed before the results. The results show just how small this company actually is (Lots of jam tomorrow words). No room for project cancellations or errors in project pricing and on a higher P/E than all the top NASDAQ FANGS companies. High historic cash burn. This will be range bound between 52p to 58p for a year or maybe more is my feeling. 51p a good entry point for me…Keeping on my watch list.