Member Info for Sm66

Sham

Seriously, you’re getting desperate now harking on about debt.

The company has reduced its debt from $3B over the last few years. I’d say lenders will be fighting to provide funds. You’re going to have to do better son.

Suggest you go back and read the RNS’s that state no material impact on cash flow or ability to raise cash. It’s an in depth review into reported figures in each division and appears that projects have withheld some information. The rest of the business is doing just fine. Previously reported EBITDA and EBITDA for 2022&23 will be corrected but 2024 appears unaffected therefore current EBITDA of £450m stands.

Current Mcap£170m equates to less than 50% EBITDA.

Takeovers are typically priced at 4-6x EBITDA in the oil and gas industry and that’s why we’re all here shouting it from the rooftop.

Deloitte have been working on it since November, I can’t see it taking another 3 months?

That’s called investor fatigue, it’s what the shorts are counting on.

Worst case for the SP is sidara walk, price will drop, shorts clear off and SO rises again how high, hopefully towards fair value. The potential suspension just adds to uncertainty and fear. Exactly what the shorts want. I’d suspect approaching suspension the shorts may start to exit if no bid has materialized. It becomes very risky for them if sidara get an extension into suspension.

Also, sidara approached Wood almost immediately after the 6 month ban from the previous attempt. They must have stated a figure that the BOD’s and II’s would consider prior to allowing DD to take place and costs incurred. What’s a fair price? Lots on here including myself consider 200p region to be fair value but there are also a lot of posters stating 50p/80p/130p/170petc. We’re all guessing but nobody in their right mind would value this business at 25p which is approximately £170m.

Spanishorange

That’s all very true however I believe that an activist investor called for the business to sell. And whilst over the medium term the value will return to fair value as long as they continue to improve on debt levels and accounting etc. Current SP is a victim of uncertainty due recent RNS’s and shorts pressure. IMHO the SP is unjustifiably low considering the fundamentals. The FT report stated an offer could appear but materially lower than the previous. Right now it’s 90% lower which I believe is way beyond materially lower.

Dow jones up 6%

S&P up 7%

FTSE up 5%

Happy to be corrected but aren’t a considerable amount of sports shoes and clothing made in Vietnam.

I suspect a lot more will be made there soon to avoid 104% tariffs. I have no idea of the percentage of goods coming from China into JD

Jock

Exactly

I lived in the UAE for 12 years and my opinion of them is they are hard negotiators but more importantly very proud of where they come from and the place it’s earned on the world stage. They will defend the above vigorously and with Wood winning contracts locally for Sidara they will want to be seen as the local leaders in size and success. Therefore I believe the bid will be forthcoming and a respectful number albeit below previous offer.

Hence why any bid below 100p will likely be rejected and frankly to come back to the table after 6 months and reduce your previous offer by over 50% regardless of what’s happening in the market is insulting and I doubt management would have wasted money on the approach unless they stated a reasonable starting point before DD and negotiation’s began, were 6 weeks in and they’re still negotiating. I’m confident

Now is the best time to get a cheeky bid submitted. They know the business and are back again after 6 months. They know the books inside out by now. The world has realized that the USA is open for negotiation. Panic over and confidence returning. I would suggest that the iron is as hot as it’s likely to be.

FTSE up, oil up pre open. Trump open to negotiation as per Israel and Japan.

Coldspy

As much as shorting can hurt they also provide opportunity.

I’m currently monitoring the FTSE which is showing up 2.07% from yesterday’s close.

Possibly due to Trumps tariff deal with Israel paving the way for other countries to follow. Even oil is up 0.9% which looks like it was trump’s target to make it harder for Russia to finance the war. There are games being played globally for reasons that appear insane to most.

Henson

Thank you, some excellent posts from you today. Trolls are working overtime to encourage weak hands to fold and intelligent support is needed.

Read the latest 8.5 RNS

SIDARA opening a new long ETF buying 500,000! Doesn’t sound like sidara are leaving the table

Positive cash flow was delayed until 2026. Debt is not spiraling out of control, they’ve admitted accounting errors in one department only.

Also, I’m pretty sure the large institutions will be in constant contact with management and they’re not selling!

Meant to say 120-130 range in November

It was 120-230p range in November before a deluge of poor RNS’s that stated no numbers but successfully destroyed sentiment. If sidara thought the business was worth 230p 6 months ago why would it be worth 50p today. The fundamentals haven’t changed, timing of reported accounts are out of whack but no fundamental change in the company’s cash position or its ability to raise cash as reported in the RNS’s. Don’t get me wrong, given the current state of the world markets I doubt the bid will equal 230p again but common, 50p values the business at 330m approx and that’s miles adrift