Member Info for JMUK26

Agree with Shearclass that it appears there is at least some dialogue going on between the 2 parties which is positive. If there was zero response and GOI were not even willing to respond after 3 months then LCM would not be waiting a further 3 months to file the arbitration claim. 6 months is just a reasonable amount of time to come to an agreement when you are in dialogue with each other and if you cant agree within that timeframe you never will. If there is zero dialogue it doesn't matter if you wait 1 month or 10 years it isn't going to make a difference.

Surprised it didn’t edge up higher than this today. They have sold a part of the business for basically what the market cap has moved up to today. There is therefore no allowance in there at all for the remaining business which is arguably the better bit. Even then there could be an approach for that and another big premium. Even after today’s rise I don’t see much downside here in the short term though it may be a bit choppy! Suspect we’ll see 20p before long. If the various managements of this business hadn’t been so bad at capital allocation this would have shot a lot higher today.

Looks a bit of a no-brainer providing the sale goes through. Just quickly disposed of a number shares in order to make a fairly sizeable purchase (for me). Can't see this below 20p for very long so pleased to have got it considering I tried and was unable to pick up anything an hour or so ago.

Why would you want to petition against short selling? Just because it can drive share prices down?

If there is nothing wrong with a business and there is no shady practice, short selling is unlikely to have any major impact in the long term as fundamentals will ultimately drive SP performance and good businesses won't really be targeted by shorters as it's too risky. I tend to think of shorters being good for the market personally in that they provide extremely in depth research and uncover many of the big frauds or malpractice over the years. If you know the SP performance of a company has been unfairly bombed out due to shorting it's an opportunity rather than a negative surely?

My take is people don't like shorting simply because they don't like to be disagreed with and they like their shares to go up.

Well deckchair I'm actually an optimistic but realistic person but regardless there's no need for the petty little jibes just because it isn't what you want to hear. There is a lot of completely unrealistic optimism regarding timescales on this forum and when I read posts with incorrect info I will point out to be helpful and informative to others. If you don't like it just ignore, but being blindly optimistic won't make things go faster I'm afraid.

Ejt777, the arbitration will not be held within 2 months of it being lodged if that is what you are suggesting? We have to be realistic. Arbitration may be constituted within 2 months, but will likely be heard a year or so after lodging realistically. Then maybe another year or 2 of waiting for a conclusion. Then more waiting for payment and appeals. Could be 5 years+ and that is what I based my investment timescale on having seen this all play out before. I made a similar response to deckchair earlier but he was talking about hoping a claim will be settled out of court by June. Apologies if I’m telling you stuff you already know, but wanted to clarify just in case you think you’ll be a millionaire in a few months 🤣

Unless an out of court settlement is made, there is zero chance this is going through arbitration and concluding by June 2024 Deckchair? If management have in fact stated this, it's a bit worryingly naïve. You can add at least a year to that, but likely much more. Even if you have to sit on the shares for 4 years, it should hopefully be worth it though.

Disappointing update, and explains the downtrend in share price over the last couple of months, suggesting we might have a few leaks. Having gone years without putting a foot wrong, that's now a couple of updates in short succession that has brought bad news and unexpected costs. Lets hope management can get on top of things. The SP seems a bit of an over-reaction.

Completely agree with what you are saying coffee to clarify. By growth I meant showing that the existing businesses can be run profitably and return to organic growth. The last thing SDI need to do right now is more acquisitions IMO. They need to steady the ship, pay down debt and then go again only when they have proven the existing businesses are being run well otherwise it's pointless. Still don't think the SP will get anywhere near £1.20 in the short term though. It's not cheap on current metrics at this price, and if there is any hint of missing the already reduced forecasts then it will get hammered.

Very much doubt we'll see £1.20 anytime soon. Management need to prove everything is ok, and growth back on track before this is going to gain any traction in my opinion.

We could have been saying that for years, as the SP has been sliding down. I think it's just that they grew such a big debt pile, and then interest rates went up just at the wrong time for them. I think that's the main reason the SP has been hammered. If they can show they are increasing cashflow and paying down that debt as a priority the SP will bounce. If debt goes up again, it will go to the 40's as investor patience is wearing thin. The continual director sells over the years also doesn't help, but it doesn't necessarily mean there is something bad around the corner in my opinion.

Some management competence I suspect. Whilst this looks cheap, there is absolutely nothing to suggest the sp won’t keep dropping like it has done for years, and profit gradually eroded.

Just ignore DrJD as it is wildly incorrect. Must be using incorrect financial data, and as it is all AI driven no sense check to validate before publishing. Forecast PE ratio is 10. However, allowing for net cash of £6.8m on £35m market cap this is reduced even further to about 8. Still looking very cheap given the growth. Could almost double from here simply from multiple revaluation and definitely a good chance if they announce a trading ahead at some point in the next 6 months.

They will get a few months to respond most likely. I don't expect anything to happen here until April personally.

Trading updates don't generally contain numbers to be fair. However a statement to confirm debt is still being reduced would be appreciated. If debt goes back up, this is rightly going to get hammered again.

A badly worded RNS. "The Board is pleased to announce that the Group is trading in line with management forecasts and that pre-tax profit for FY 2023 is expected to be broadly in line with market expectations." The forecasts typically come from management guidance so not sure why companies say this. Clearly a slight miss on current forecasts, but hopefully nothing major. Like Trendz says, debt is what the key focus is here and they should be including a figure as that is why the SP is so depressed.

Agree with everything that you are saying Rivaldo. On ADVFN the usual members are saying that Mike did a terrible job and only did what any other CEO in his position did using cheap finance for the last 10 years and that performance wasn't extraordinary. I would say that is complete nonsense as each company had access to this said "cheap" finance and did not come close to matching SDI's performance both on financial metrics and SP. He did a really good job, but like you say he may not be the man to properly structure the business and get them cross selling and working well together.

I think if it's a categorical no from India, and no room for reasonable negotiation, then PAT won't need to wait for 6 months I wouldn't think. That's just a advisable and reasonable time to allow for negotiation, and if you can't meet in the middle after that period of time, arbitration is probably going to be the only solution.

PK73 it all hinges on what constituted means and maybe to a lawyer it is clear. In plain English I would take it that it means a tribunal is undertaken/complete. However having followed a few of these over the last few years, it never gets done that quickly so I think it probably means that a tribunal will be formed, but it could actually be held much later on.

Thanks private punter. I’ll keep a close eye on this one as it was one of my favourites but would need sp to drop a fair bit more for re-entry to make up for the risk imo. They have had unexpected write downs on the last 2 updates having said on both occasions that trading is in line with expectations so I’d take whatever they say with a punch of salt. I do want them to succeed, but the comms have been misleading over the last year or so which saw me reluctantly exit. Mike was the critical cog for me but I look forward to your write ups to see how it pans out here and if you are still comfortable holding. Appreciate your website btw, always a good read.

Very surprised it has only dropped 5% so far. Needs a trading statement alongside this RNS otherwise it seems that they are hiding something. CEO's don't just quit with no notice, he's been pushed and shareholders really need to know why unless it is just for the general underperformance over the last year or so, even then I'd expect him to work a handover period.