Sondrel (holdings) Share Discussion Threads

[richman777114] 17/4/2024 21:15

I agree with your analysis but a leap of faith is required re the possible disapplication of statutory pre-emption rights (special res passed by the two largest holders post raise) and resultant dilution to other holders-possibly more than once

[researchguru1] 17/4/2024 07:58

POSTED ON LSE BY SM1

Sorcerer, your description of Sondrel as a business with “market leading capabilities, contracted future revenues of $200m, and a strong sales pipeline in a pivotal growth industry”, is bang on the money.

The company’s ultra-complex chips offer significant scale improvement when it comes to latency, privacy, security, and increased efficiency; making it one of only a tiny handful of companies out there that are able to do this, and which explains why Elon Musk’s brain implant start-up, Neuralink™, called on the company for its expertise in designing its brain chip.








Now, let’s just think about that for a moment. Why has a $5 billion-capped US biotech sought assistance from an off-the-radar British nano-cap? What kind of expertise does it have that is clearly out of the reach of the thousands of US chip makers accessible to Elon Musk? And what’s the inherent value of this expertise/business?

The answer to those questions is the reason why institutional investors Otus Capital Management (7.28%), Joh. Berenberg, Gossier (4.66%), Herald Investment Management (4.16%), and Lansdowne Partners (4%) are still here, and why an estimated 17% of the stock is currently held by private investors.

But a £3.3m market cap (3.85p per share) simply does not cut it!

Which is why I remain fully invested because, as you rightly put it, there are several possible outcomes here; some pretty spectacular, but none that is likely to value the business anywhere close to where it is today.

And a quick glance at the recent ‘delisting stocks’, and how they have performed since their delisting announcement, paints an interesting picture of a fast-evolving, private investor perception of these stocks. Put simply, nearly all the stocks have staged a strong recovery meaning that, private investors are prioritising value over exploitative ‘engineered fear’ by some greedy actors within those businesses.

Take C4X Discovery, Molecular Energies, and Redx Pharma for example; a week after their delisting announcements, the head honchos (Clive Dix, Peter Levine, and Lisa Anson) swooped-in and picked-up stock at ‘fire-sale’ prices, and after unsuspecting private investors lost their shirts through panicked sells. Utterly reprehensible! But that is capitalism for you. And the stocks are now trading significantly higher than their ‘delisting’ trade prices, despite inching closer to delisting. This means that, investors are now prepared to hold privately marking a significant step change in the investment culture.

So private investors are not going to fall for the copper-plated nonsense being spouted by some of these greedy actors who want to steal the business under their noses.

And Sondrel, which is incredibly undervalued across all industry benchmarks, and probably the most undervalued chip maker in Europe, is going to trump all these companies and change the narrative. Watch this space.

And yes, I agree – this is what makes the current situation with SND so interesting.

AIMHO

.

[tia01] 16/4/2024 10:13

So do we expect a decent rise in this. Yesterday showed some excitement but today seems a bit subdued!.

[source] 15/4/2024 12:11

Outstanding post & analysis. Thanks ResearchGuru1 ;)

[source] 15/4/2024 12:08

If the private equity company Rox find a ready buyer in their network/USA before October they could flip it very quickly for a big number. Given how massively underpriced Sondrel is right now compared to any of it arguably worse competitors. HmmmIt no doubt a company many high tech firms would be VERY interested in (maybe even some of its blue chip customers & huge order holders)....

[bensdad2] 15/4/2024 11:35

Plus Crux sold their holding down to zero last week (it appears) and Perpetual are probably out by now as well. CEO holds 44% of the shares and I doubt that he will be selling. So, if the buying continues with strong volume, the rise could well continue for the next few days.

[bensdad2] 15/4/2024 11:33

This is one way traffic at the moment. All buys are very few sales. I have just tried a tummy sell and was quoted 4.1p. I'm hoping for double that if possible.

[someuwin] 15/4/2024 11:15

Remember that Sondrel is one of the few companies that can design chips down to 3nm. And the only one in Europe! This is a crazy price for such leading edge tech. Someone will buy this out surely.

"Reading UK – 22 March 2024. Sondrel (AIM: SND), a leading provider of ultra-complex chips for leading global technology brands, reports that there is an increasing demand for its 3nm design services for custom ASICs. 3nm is needed for the next generation of products, particularly AI-based designs that require immense compute power to process the huge amounts of data being processed.

3nm not only offers a significant scale improvement in power and area, but it also adds enhanced capabilities that leverage Sondrel’s significant investment in cutting edge SOC design flows, building on its expertise in designing ultra-complex ASICs at 5nm. This combination of performance, power and area improvement, enhanced by accessing best-in-class 3rd party IP, helps Sondrel’s chip designers to stay ahead of system-level demands...."

Sondrel is one of only a few companies worldwide that can deliver these complex chips and the only one headquartered in Europe.

[bensdad2] 15/4/2024 10:49

I'm in for the ride back up to somewhere close to 10p - that is the price at which ROX is going to provide £8.5m funding.I thoroughly recommend the postings from SmartMoney on LSE, for a very clear rationale to explain why 3 or 4p is far too low.

[someuwin] 15/4/2024 10:39

Highly susceptible to a takeover at these ludicrously low levels imo.

[lawson27] 15/4/2024 09:09

Joined you for a recovery here, GLA

[tia01] 15/4/2024 08:55

What the take on this one.
Some give me a lesson on history in it as I know little

[someuwin] 15/4/2024 08:42

Taken a few here. Very interesting situation.

[cyberbub] 02/4/2024 20:21

You know that Roxi have taken a decision to shaft PIs because they've said they won't be providing a matched bargain facility for unlisted share trading. Usually companies delisting will at least provide this facility as a courtesy, so that any PIs wanting to hold on will know that they can still sell in future, even if it involves taking a haircut. Roxi are trying to force all PIs out before delisting, they're probably picking up every PI share sold sub 10p, which will greatly reduce their average buyin price. Cynical? Moi?

[source] 02/4/2024 14:09

The poor treatment & planning has meant the share price has cratered 90% in two trading sessions AFTER they stated in the last RNS they would be raising at 10p and had allowed for plenty of time for shareholders who don't want to hold through to get out efficiently before delisting. Company needs to fix the mess they've caused.

[amt] 02/4/2024 13:55

Disgusting way to treat shareholders and another appalling AIM share.

[dennisbergkamp] 02/4/2024 11:33

Seems like a smash and grab
D

[source] 02/4/2024 10:45

Surprised the company is not out supporting the shareholders here given they said in last week's RNS they would be raising at 10p. I've also checked & it seems current shareholders can continue to hold their shares after delisting, but obviously you won't be able to easily trade them then. Rox are stealing it here.

[john henry] 30/3/2024 09:43

Agree gopher Curren is already being moved sideways.
And once private im guessing he will hold around 15% of the company.
Currens demise in the company has started, eventually leading to employment as a scientist.

[gopher] 28/3/2024 20:42

Sad day for the company but at least staff still have jobs. - the RNS told a clear story over the last 9 months, but not the opportunities Curren may turned down to save his company but lose his grip. I guess his big shareholders would have demanded change for funding, this will now be imposed by PE vultures.

[cyberbub] 28/3/2024 16:45

I never bought in here as I thought it was too risky until we got clarification on the financing, looks like I was right... A dirty delisting! Roxi want control for themselves without any pesky PIs! Very disappointing for holders. The management are to blame IMO for not raising enough money at IPO to give themselves a good cushion to reach profitability.Having said that, *if* the Roxi funding genuinely takes place at 10p, *and* PIs think that the company will return to profit and eventually prosper, then it could be a bargain to buy shares at below 5p on-market and just hold shares in a private company after delisting. Of course it would be a long-term investment as you probably couldn't sell until and unless someone (possibly Roxi) bought the company out completely, making an offer for any remaining PIs' shares. So it's risky... You would have to get a share certificate issued by your broker, and make sure the company secretary knew of your holding.No advice intended of course.

[john henry] 28/3/2024 15:34

ROXI will pretty much own SND as a private company