Post on ADVFN27 Jan 2009 11:54
Rainmaker - 27 Jan'09 - 11:41 - 105 of 106
Will post a big buy recommendation with all my research + conclusions out on SDI Group(SDIG)in the next few days. Way,way,way undervalued,currrently 2.25p/2.50p. I think you will do very well in you are able to pick them up at 2.5p or 3p or even 4p. I would happily buy them if they were trading at 6p.The Directors(+Managers and Employees) bought £360k worth at more than 3 times the current share price less than 6 months ago.
In essence, the recent sale of their US business for just under £5mln(hey, isn't a weak £ just great sometimes)has killed two birds with one stone so to speak-secured the Company's future and offloaded a subsidary that was responsible for 94% of Co losses so remaining Company trades at pretty much break even.Net Cash by my calculation should be at least twice the current market cap of £3mln(I reckon about £7.5mln -that's even after taking into account US losses) They have a great franchise in that they design, building and support material handling solutions for retail, wholesale and e-commerce to increase productivity and retails sales margins. Matalan, Moss Bros, Primark,Moss Bros,George at ASDA are all Customers. There is huge business for them once them once retail picks up which it will sooner rather than later-we've already had two consecutive quarters of negative growth-officially a recession