Sdi Share Discussion Threads

[shanklin] 23/8/2021 14:30

Surely, the share price is falling due to the forecast EPS reduction from FY22 to FY23?

Not currently holding and sadly missed the big rise but less committed holders may well have exited due to the fact that, superficially at least, its gone ex-growth and currently fails GARP filters.

If the share price continues falling, at some point, SDI is going to become an absolute bargain.

[az4hr] 23/8/2021 14:00

SP really getting on my nerves. Like everything else in my portfolio o getting absolutely smashed first Playboy, then Botb, Slp and now this 🤬

[garbetklb] 23/8/2021 13:33

Hi Mammyoko
I hold a lot of SDI.
I'm a bit mystified by the strong sell. Firstly, by clicking on the "broker" button in Stocko, you can see tat there are 2 analysts are (names witheld), but that there is a single strong sell recommendation; no other view shown.
On SDI website under Investors, then Equity Research, there are 2 brokers shown :
Finncap (Free access if you register) - 20/07/21, target price 195p, looks good going forward
Progressive Equity Research (Free access if you register - think this is paid for reserch)- 20/07/21, no target price, but v positive (as might be expected if it's paid for....)

So no obvious source of a strong sell. Could it be anything to do with Stocko's algorithms??

TBH, I subscribe for Paul Scott's writing plus basic stock info, rather than any of the stock ratings etc.

Andy

[mammyoko] 23/8/2021 11:21

Stocko has analyst consensus recommendation of 'strong sell' - 2 analysts both with 'strong sell' notes.

Anybody had access to the notes?

Disclosure: I hold SDI

[steeplejack] 23/8/2021 11:20

Meanwhile Judges Scientific is hitting new all time highs.

[arregius] 23/8/2021 10:57

Weak hands to strong hands

[rivaldo] 20/8/2021 08:34

Interesting new Q&A with Sentek's original founder, including this in particular about SDI:



"In so many companies, when they are sold, they go wrong. The owners may want to change processes or personnel, but we haven’t experienced that with SDI Group. Since 2015, they have supported us where we needed support, and have let us do our thing as we have been doing for 30 years now."

[sweetunicorn] 19/8/2021 16:29

Monmouth

"We've got some incredible footage of our new HQ, it's really taking shape now!

Thanks for letting us borrow your drone Beeston Media !"

[sweetunicorn] 19/8/2021 16:17

SDI works like a reliable swiss watch. SDI will continue to do what they have been doing for years and what they are very good at. They will continue to buy quality companies at reasonable prices and they will continue to grow the business organically (regional and sector expansion).

SDI will continue to recruit high quality staff and continue to invest for organic growth.

I look forward to the next trading updates and M&A RNS. In the waiting period, I am collecting the SDI pearls that no one wants.

SdI long-term growth target of 28% p.a. with 8% organic and 20% M&A growth intact.

Over 30% potential to ATH over 15% potential to FinnCap PT and at 23x fwd FY22 FCF multiple a massive valuation discount to peers.

SDI is currently severely undervalued by the market and the indicators show an extremely oversold condition on the technical side.

I am doing what I always do. Ignore the noise of the prices and concentrate on the fundamental long-term developments.

I trust SDI management at all levels.

I am looking forward to the new Monmouth video which is in the process of being completed...


No investment recommendation always check the data yourself

[hastings] 19/8/2021 15:56

I don't think or believe there is anything awry here. Visited the Cambridge arm earlier in the week and all appears to be going well!

[fozzie] 19/8/2021 14:10

What an opportunity to buy for lth. Just carp markets at the moment is all, red everywhere as small caps go risk off.

[steeplejack] 19/8/2021 13:54

Ironically,the stock has been weak ever since the Shares magazine reiterated its buy recommendation at the end of July.The stock has fallen on lowish volume but is now down a quarter from the years high..The forward multiple is demanding but the PEG very attractive.When a stock falls like this (even in thin trading)the concern is that someone might have got wind that somethings gone a bit awry and compromised earnings forecasts .The technical support is indeed around 160p.I think we've got an AGM in a month or so that might clarify things.

[johndoe23] 19/8/2021 13:20

Looks like 160p support might be tested soon. Adding/buying opportunity!

[sweetunicorn] 09/8/2021 19:47

Great developments and impressive work of #GraticulesOptics management and staff.

Following the announcement of a major multi-year investment program at Graticules Optics Ltd.

Neil Blackford Director GraticulesOpts

via linkedin 5 days ago:

"... are now on target for a record year, by far."

[rivaldo] 09/8/2021 13:31

Nice £59,000 buy at 195p just reported - 5p above the current 190p offer price.

[arregius] 09/8/2021 07:35

I could ve my hole portfolio here. Very calm

[fillspectre] 06/8/2021 17:32

Strange drop today - nothing warrants it. We need to clear Summer and get to normalised conditions.

[sweetunicorn] 06/8/2021 09:19

Yes Hastings really very good video of Monmouth and the homepage very well done. Michael Skidmore Digital Marketing Executive at Monmouth Scientific did a very good job.

I also like the introduction video of ChellInstrumens:





Monmouth was really a great acquisition. A very strong and intelligent growth-oriented management. The add-on acquisition of Uniform was an extremely smart move. I really like what Mike (CEO) said in the IMC presentation about Monmouth of USA expansion and the Uniform acquisition. I like the way they are managing the portfolio at SDI. They don't get stuck in sectors but are free and open to M&A. The two sectors only give a rough framework in which SDI wants to move, but at SDI they are open to breaking into adjacent markets. Mike describes the manufacturing sector in special niches like Uniform as a vertical market for SDI with cross-selling and scalability effects.

I like how SDI first looks for interesting companies that are a good fit/complementary to SDI and existing companies and if value can be created for SDI and shareholders. Only at the very end does SDI look at which sector to put it in or open a new one. This way you keep a wide TAM open.

This open M&A concept, where SDI is less driven by fixed sectors, distinguishes SDI from JDG, which is very focused on the scientific sector.

[hastings] 06/8/2021 06:50

That's a really good and informative video by Monmouth on the new website, certainly a cracking acquisition for the Group.Looking forward to seeing what shape and form the next SDI addition takes.

[sweetunicorn] 05/8/2021 15:46

Monmouth Scientific via twitter:

"We’re excited to announce that our new and refreshed Monmouth Scientific website is live at



We hope you like the new site, and if you have any feedback, please let us know!"

[sweetunicorn] 05/8/2021 10:58

Applied Thermal Control ATC growing and is hiring!

Great to see! New ATC distribution networks regional expansion into South Africa appear to be driving further growth.

"ATC is growing and we are on the lookout for an engineer to join our technical team. If you have a passion for quality engineering and continuous improvement please check out the link below."

[sweetunicorn] 05/8/2021 06:46

I think the FinnCap/House Broker forecast has caused a lot of uncertainty. The forecasts are absolutely incomprehensible and do not match the fundamental development. The forecasts are very cautious.

FCF FY21 9.2 £m - minus change in working capital (One time orders) FY21 FCF £m 5.9

FinnCap FCF forecast
FY22 6.1 £m
FY23 5.3 £m
Acquisitions excluded

FinnCap expected growth (organic)
FCF based forecast
FY22 4%
FY23 -13%
Acquisitions excluded

If I take the long-term organic growth forecast by SDI management of 8% per year as a basis, which is already a very conservative estimate, I arrive at a different FCF forecast.

For FY22, FCF would be 6.4 million excluding acquisitions.

For FY23, FCF of 6.9 million excluding acquisitions.

FinnCap's FCF forecast for FY23 would therefore be 30% behind the long-term forecast of SDI management on an organic FCF basis.

I expect 3-4 acquisitions until the end of FY23, which should result in ~15% M&A growth per year. Including M&A 15% p.a. + 8% p.a. organic growth, this would result in FCF of GBP 7.4m for FY22 and GBP 8.5m for FY23.

SDI would thus trade at a current price of 195p at 12m fwd MC/FCF 26x and thus still at a strong discount to the peer group.

When I look at the statements of the CEO CFO and Chairman on the FY21 results and assess the outlook they give, I come to a very different personal forecast for FY22 and FY23 than FinnCap does. SDI management speaks of an expected organic growth. But FinnCap considers only 4% organic growth for FY22 and for FY23 they forecast -13% organic growth. i think a FCF forecast of 5.3mio for FY23 is very unbelievable and much too low.

We will see how SDI develops but I think we will see a lot of upgrades.

The SDI management should be aware that a housebroker who is repeatedly encouraged by the SDI management to much too low forecasts loses credibility in the long term and a reliable analyst discount is missing, which leads to uncertainty for shareholders.

A cautious outlook is okay. But I think one should not be too overly cautious in the long run because by now SDI management should have enough confidence in its business.


I think we will see who has done their homework and will be rewarded in the long run. The shaky hands will throw down while the strong hands will do their homework and be rewarded. You saw in February what can happen with positive surprises after a TU and SDI has shown in 2019 with 5 acquisitions what M&A growth they can mobilize quickly. And with an expanded credit facility, 0 net debt and strong cash flows, SDI now has great firepower for investment and M&A.


Ken Ford Chairman:

"The outlook, thanks to our agile business model, is positive and we are planning for further organic growth, including from one-off COVID-19 related orders, and appropriate acquisitions during 2021-22."

No recommendations. Always check the data yourself.

[fillspectre] 04/8/2021 22:59

Strange how the SDI share price is lurching around at the moment. Next acquisition RNS should settle us back into an upward trend. I'm really impatient to see what sort of Company Mike Creedon will buy next. Can't help but feel there will be a new acquisition before end of calendar year. Fils

[sweetunicorn] 04/8/2021 16:38

Nice to see great developments at #ATIKCAMERAS. Introduction of newly developed TE-77 CCD camera will set new standards + put AtikCameras as strong $SDI.L company in even stronger position to meet high demands of demanding OEM customers worldwide with special #OEMSolutions.


A great example of #customisation that perfectly showcases Atik's brand new TE-77. The TE-77 is the first of ATIK's advanced scientific CCD cameras and here ATIK has equipped it with a custom front panel to make integration easier for the customer

Jason Evans the Sales & Marketing Director - Atik Cameras, Quantum Scientific Imaging & Opus Instruments writes on linkedin:


"As promised in my last post... Great to provide a sneak peek of another new product thats almost ready for release in to the wild!

Utilising Teledyne e2v's CCD77-00 sensors, the TE-77 is due for launch imminently and we are looking forward to releasing all of the supporting information and literature shortly. This will be a fantastic new camera that will make high-end scientific imaging more accessible (and afforadable) than ever. It's also a development that further strengthens our position and belief that CCD will have a place in the market for many years to come, especially when companies like Teledyne e2v commit to the long term future of the technology.

Please don't hesitate to get in touch should you have any questions or want to get hold of a demo camera for testing with your application."