The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I have also seen delayed reported trades that match the volume of previous reported trades published in the following days after such a large transaction, I believe there is no obligation for Market Makers to publish trades on the day if they are above "normal market size" for POLX this is 15,000 shares.
I've had a couple of conversations with market makers many years back and my overriding impression was their main concern was balancing the books.
Price manipulation will usually be due to someone who wants to buy or sell a large position and there were people who specialised in getting the best results with trading software.
Serica have no control over this so what can they say.
I see this as a buying opportunity as I doubt the seller is exiting because they think SQZ is overvalued.
OEM 9 is the next likely candidate from recent presentation information, two models for 2022 are planned with one an option and the other a standard fit from memory, there may be delays but the comments at the time of the fundraising give me confidence that they will be using our brakes at some time in the near future.
For those not familiar with the directors its worth clicking on the "our team" tab on their website, David Bundred for example led the industry introduction of anti lock brakes.
Your welcome Guitarsolo,
I agree there is much to like about SCE.
As far as the margins are concerned i was thinking back to one of the recent presentations, from memory a new production cell costs about £10 million, each new cell adds £15 million revenue , and the payback on investment is 15 months at full capacity, this would suggest something close to previous margins.
Hi Guitarsolo, the 20-25% is net profit, the gross profit on the discs has traditionally been just over 60%. Although we probably can't expect this much from multi million OEM contracts Kevin mentions in the presentation that he was pleasantly surprised at the margins they have been able to achieve for signed and potential contracts, the £75 million revenue prediction from full factory capacity is an upgraded figure.
SCE do hold some patents but have said the main protection is the know how and barriers to entry.
With electric vehicles being a good fit for ceramic brakes and OEM's now being able to duel source I think expanding quickly enough will be our biggest headache.
BMW will probably not be an option for now due to them being part owners of Brembo, I see this as a positive though as this must encourage other German OEMs to duel source for more than just security of supply reasons.
The Surface Transforms BB's across all the investment sites are quiet but of good quality, I always wonder how much hype is in the share price of a busy BB stock. SCE is under the radar for now but i'm sure that will change when the 2021 results show a R&D company has now become a fast growing profitable production company.
I listened to the presentation yesterday, it was aimed at potential investors so no new news. Delivered confidently it explained how we had got to where we are today and how many barriers to entry there are. SCE also showed that they are ready to expand production as new contracts come in, this was followed by 30 minutes of Q&A. The quality of the product and management came across well in the presentation.
Bought in myself this morning, i was doing some research on the company but with the price surging i decided to jump in, glad I did up 10% from my buy price already. Looks very interesting and still relatively under the radar for now.
At the agm it was stated that a phased approach would be taken starting with an inspection of the R3 well in August, BP were happy to send a rig straight to R3 but Serica do not want to take the chance that an expensive rig will be on site but waiting for a problem to be resolved.