SAE19 Nov 2021 20:20
Lots of buys showing as sells today. It appears the main reason for the decline in the share price since IPO, has been dilution. I read sae floated at £0.94 around £70m market cap.. it's unfortunate those who bought in early days have been diluted over the years, but it's worth saying shares in issue is still relatively small. And of course the company has progressed since IPO so it's no doubt worth quite a lot more today than it was at IPO. Indeed, NAV per share is reading as just over 12p on this site, compared to a share price of just 1.5p so it appears this stock is way undervalued. The decline in share price being largely due to dilution, although long term holders may not agree, it isn't necessarily a bad thing - better the decline be largely due to dilution/requirement to raise funds, than for it to be due to anything materially wrong with the company - which is absolutely not the case here . Tidal power is relatively new and getting this new green industry going was never going to be a quick process. All things considered, SAE has come a long way since IPO and have achieved much. It's unfortunate those who bought in at IPO and may still be holding unknowingly and incorrectly assumed tidal power would be a multi billion dollar industry by now.. it's taken much longer than perhaps many thought, but you can't blame that on SAE, it's the fault of circumstances outside the company's control. Shares in issue is still relatively small and the company has progressed quite a lot since IPO. Market cap is £10m versus net asset value over 8 times that. And tidal power is (finally) being taken seriously with some real signs the industry could soon be well and truly up and running in what could eventually be a multi billion dollar industry. From what I've read about Simec Atlantis, I have to say I like the company, its assets, it's turbines, it's plans and aspirations. And I also like tidal power - I like the way it's largely hidden beneath the waves, no unsightly blot on the landscape unlike wind and solar. I also like the way tidal power is predictable and reliable, unlike wind and solar, because it utilises the power of the moon which is constant and never stops. If tidal power really booms over the coming years, there's every reason to believe Simec could one day become a billion pound company. With considerably less than a billion shares in issue at present, the long term potential upside from 1.5p is clearly enormous if all goes well for the tidal industry. In the meantime, the company has cash generating assets and various projects going on around the world, the tidal industry is only just getting going and has the potential to be absolutely huge.. what's not to like?
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