Sdi Share Discussion Threads

[sweetunicorn] 09/9/2021 13:14

SDI Chell Instruments

Chell Instruments Now Distribute Mott Gas Purifiers Across UK and Scandinavia

They are trusted across multiple industries, providing complex filtration systems for aerospace and defence, chemical processing, microelectronics, energy and more.

Mott promise critical precision and iron clad reliability, supplying filtration and flow control engineering for leading companies including NASA, Samsung, PepsiCo and General Mills.

[sweetunicorn] 07/9/2021 18:29

SDI SENTEK

7.September 2021

GREAT LETTER! From Founder and Technical Director, Kenny Petrie

"...Today Sentek Ltd is in a position of strength due to our ongoing commitment to offering flexibility to our customers in the areas of design, innovation and chemical support and the proven ability to excel and grow in the face of one of the toughest years’ the world has had to endure.

In deciding who should take the business forward, we wanted someone with the right mix of business acumen, organisational skills, and industry experience. With that in mind I am extremely pleased to announce we have appointed Paul Cook as Managing Director....."

[sweetunicorn] 07/9/2021 08:40

SDI Monmouth Scientific Mobile COVID-19 Lab Case Studie

As the COVID-19 pandemic spread and the UK’s Mass Testing Capacity increased, Open Cell developed a low-cost rapidly deployable COVID testing lab inside a shipping container. As part of the all-in-one diagnostic solution, Biological Safety Cabinets were required to carry out testing.

[sweetunicorn] 05/9/2021 16:09

I think SDI is increasingly coming into the focus of large international quality investors. But as the last months have shown it is a problem for large investors who are used to invest large sums and like to take strong positions (3-5% of the company shares) to invest in SDI. SDI is still a very illiquid microcap with a market capitalization of less than $200m. The shares are already mainly held by strong long-term investors. Shaky small investors who often tend to less rational, strongly emotionally driven sales move only small volumes. The strong hands are then quick to buy.

Danske Bank recently had problems getting its targeted 4% stake in SDI, so they had to approach SDI management.

It is almost impossible for large investors to take large positions or invest large amounts in SDI.

But I think SDI will be able to increase the FCF in the next years. I expect that in 5y SDI will be able to generate FCF of at least 20mio annually and the MC will increase to over 500mio.

If the MC increases and SDI gets more and more into the focus of big money, the multiples will increase and investors will be able to invest larger amounts in SDI due to increasing liquidity which will make SDI more interesting for big investors.

I think the valuation close to fair value is still very attractive in the long term.

[ymaheru] 05/9/2021 15:53

Hi SweetUnicorn, thanks for the explanation and the links. I’ll get listening later.

I think SDI is less known because it is smaller and because it has more recently gone public. My experience is that the big gains are when these companies are being discovered by institutions. So, for SDI that means being invested right now, as you say.

[trident5] 05/9/2021 15:17

Thanks - It was just a quick question trying to clarify what growth target your post referred to.

[sweetunicorn] 05/9/2021 11:56

It is important to listen to the presentations yourself to understand the context! The CEO and CFO explain the Targets they pursue and how they implement them. A lot of very good information about growth targets and also profitability factors like ROIC. How it is measured etc.

You have to dig deep to see the great potential of SDI

Watch the presentations and listen to what the CEO and CFO tell!

Interim results for the six months ended 31 October 2020



Here is the very infomative current IMC presentation with Q&A on Results FY21.

[trident5] 05/9/2021 11:34

Could you clarify what growth is being targeted please - sales, profits, cash flow?

[sweetunicorn] 05/9/2021 09:54

In SDI's Investor Meet Company IMC presentation on interim results for the six months ended October 31, 2020, in the Q&A, CEO Mike Creedon describes long-term growth Targets.

In question 23 he is specifically asked about the 28% growth target and he confirms the target.

Listen to the IMC presentations and you will get it in black and white.

The CEO recently reconfirmed this long-term growth target.

If you study SDI and management you will find that management is very cautious and cautious in their forecasts and forward looking statements and everything SDI does is very far sighted, intelligent and safety minded and there is a very strong understanding of growth and shareholder value.

I think 8% organic and 20% M&A growth per year which SDI management is targeting is very realistic.

SDI has strong growth factors and can strongly increase FCF. The framework conditions are excellent and SDI fully reinvests the FCF with a high ROIC of over 30% because they do not pay out dividends.

Halma or Judges pay out ~45%% of the FCF as dividend. Judges even uses Tool of special dividends to pay out FCF. Judges or Halma show much weaker FCF growth compared to SDI, but are valued much higher. SDI is still trading at a massive discount to Halma and JDG on an FCF basis.

I think the conditions for SDI are excellent. SDI seems fairly valued with strong double-digit FCF growth in expansion and high reinvestment rates at high ROIC.

I think the biggest mistake is to unbreak a compounding machine by paying out a large part of the FCF as a dividend.

This factor that SDI can reinvest 100% of FCF at ROIC >30% is neglected by many investors in the valuation.

Many investors still focus on the highly overvalued serial acquirers like Judges or Halma. But I think SDI should get the attention. In 5 years when the liquidity increases and SDI has grown to a >$500m company with >20mFCF investors will pay more attention to SDI.

I still see great potential for SDI. Regional expansion. Sector expansion. M&A. Buy and Build. Multiple Expansion.

No investment recommendation. Check the data yourself for correctness.

[ymaheru] 05/9/2021 02:46

Hi SweetU, you've mentioned twice (at least) that management are forecasting 28% "long term" growth, but I cannot see that in the annual report, and haven't seen it before.

It is higher than anything I'm predicting, and I'm hoping SDI management wouldn't over-promise. Do you know if they have anything like that in writing anywhere, please?

[sweetunicorn] 02/9/2021 17:05

#SDI ATIK CAMERAS looks busy!
Frederico Dias Key Account Manager at Atik Cameras via Linkedin:

"Not a lot of time to post anything since the #ATIK Lisbon team has returned from holidays but I would just like to say, to all of our customers & friends - rest assured, we are back to business as usual to fulfil your orders!"

[sweetunicorn] 31/8/2021 15:50

Business at Monmouth appears to be continuing very well

Monmouth Scientific is HIRING

[alter ego] 30/8/2021 15:48

thx for posting Sweetunicorn. As you say, very informative and objective.

[sweetunicorn] 30/8/2021 14:32

Another great write up by Martin Flitton.

He tries to put the sometimes somewhat confusing pricing events of the last week and the uncertainties that have led to some strange reactions/comments from shareholders into perspective.

As always, very informative and written with great detail.

[arregius] 28/8/2021 07:42

Hopefully atik chinese one off contract can continue but IF NOT the new acquisition will make for those revenues so either wau finncap will need to sdjust their 23 estimates

[ymaheru] 27/8/2021 22:52

I feel like there’s a witch-hunt on…partly for me.

I was just reiterating my belief. I said the same on Jul 20 at price 183 and now a month later. I was tempted at 153 but had no cash available and had been calculating only 20% near term EPS growths (including acquisitions). If I’m selling anything to buy SDI then I’m risking opportunity cost elsewhere.

Example is that LUCE is up 31% since that earlier post, whereas SDI was down until today. I don’t really look short term anyway, and I would love to have had the 25%+ bounce this week, but I’m not unhappy having backed a different horse instead in recent months. SDI doesn’t appear to have a huge discount to fair value ‘to me.’ It’s just my opinion.

To reiterate another point I make, SDI seems a very well run company. It is actually 25% of my entire portfolio. I just wasn’t keen to add at 155-160 with what I knew at the time.

I’ll try to check for that 28% growth figure, but even then I may feel there are better options.

And finally, congrats to the person that did nail SDI at 153 last week.

[steeplejack] 27/8/2021 17:01

No,i probably wont bother,i never have before.I find these BBs occasionally cathartic but rarely informative.Actually,sometimes they’re downright misinformed and misleading.

[trident5] 27/8/2021 16:41

"I’ll note the names". Really?

[steeplejack] 27/8/2021 15:35

Good to see the shares rising some 25% from the low point earlier in the week.Also interesting to note the luminaries who suddenly emerged to comment that the weakness was more than justified.I'll note the names of those commentators,some of which are workmates of proprietary books i suspect.Anyway,Danske got some cheap stock on the week.

[fillspectre] 27/8/2021 07:39

The news flows about Monmouth give off the impression that things are going well down in Bridgewater. Mike Creedon could well have his work cut out - to make his next major acquisition as good as the last. Fils

[rivaldo] 26/8/2021 12:14

Good to see Monmouth Scientific posting yesterday that they're supplying to Oxford Nanopore, one of the UK's "unicorns" likely to IPO in the near future and heavily involved in COVID testing:



"Monmouth Scientific
@Monmouth_Sci

The Class 2 Biological Safety Cabinet and a CT Filtration Fume Cupboard are two of our most popular products.

These two were both installed at Oxford Nanopore, playing a crucial role in their world leading DNA/RNA sequencing technology."

[gleach23] 26/8/2021 10:11

Yes steeplejack...it did seem as though the share price had been walked down for a fund to fill their boots in the 150s while PIs were left to go figure why the share price was tanking.

[steeplejack] 26/8/2021 10:01

I see Danske Investment Management has upped its holding to just over 4% an increase of 0.9%.This probably explains the shenanigans of the last few days as the marketmakers sort to shake out loose holders to fulfil the order.

[bigbigdave] 25/8/2021 17:57

Looks like that was the short term low point yesterday morning @ 7% off.
Onwards and upwards.

[steeplejack] 24/8/2021 13:52

Yes,almost has the look of a good old fashioned tree shake assisted with pithy comments on BBs by parties unknown espousing a fundamental overvaluation.Yet,i know the City to be staffed by honourable men so swiftly dismiss such crude,unsubstantiated notions.