Sdi Share Discussion Threads

[hastings] 26/11/2022 11:30

Interesting Tweet from ATIK relating to the CMOS camera, stating "shipping kicking off a massive project".Concludes with, "preparing for high demand from this project". Sounds very positive.

[hedgehog 100] 17/11/2022 17:30

steeplejack 28 Oct '22 - 05:49 - 1662 of 1676 0 2 0
" ... It becomes more difficult of course for the likes of an SDI to make a ‘game changing’ acquisition the bigger the group becomes as the history of a BTR or Hanson confirms.(Nonetheless,Halma continues to defy the sceptics). ..."


Readers may be interested in a new such company arranging to float, via RTO into shell company ROC, announced a couple of days ago:-

15/11/2022 15:56 UKREG Rockpool Acquisitions PLC Potential Reverse Takeover & Suspension of Listing

"Rockpool Acquisitions Plc, the Special Purpose Acquisition Company ("SPAC") formed to undertake the acquisition of a company or business headquartered or materially based in Northern Ireland or alternative transactions with suitable targets, including those that may not have a direct connection with Northern Ireland , has entered into heads of terms ("Heads") relating to the proposed acquisition (the "Acquisition") of the entire issued and to be issued share capital of Amcomri Group Limited ("Amcomri"), the holding company of a fast-growing, acquisitive group of quality UK Engineering and Manufacturing businesses.

The group consists of nine SMEs acquired over the past five years in those industrial sectors, and has a wealth of experience in optimising business performance. ...

The consideration for the Acquisition if it is concluded ("the Price" ) will be GBP22,340,625 (based on the forecast pro-forma aggregate EBITDA for FY2022 of GBP5.401m, an agreed EV to EBITDA multiple of 6.84 and net debt of GBP14.6m) ...

Mike Irvine, co-founder and Non-Executive Director of Rockpool, said: "I am delighted that we are able to announce the potential acquisition of Amcomri which is intended to see Rockpool transform from a SPAC into a profitable trading enterprise. Amcomri's track record of successfully acquiring businesses and its wealth of experience in optimising business performance when combined with the opportunities for further acquisitions that a listing should provide, make the Acquisition a transaction that should create value for both the Rockpool and Amcomri shareholders.""

[davidosh] 15/11/2022 13:10

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[davidosh] 15/11/2022 12:32

Just to let shareholders and prospective investors know that SDI Group will be one of the companies presenting at MelloLondon, the two-day investor conference on Wednesday 16th and Thursday 17th November 2022. The event will also feature top quality keynote speakers such as Lord Lee, Katie Potts, Andy Brough, Gervais Williams and many more. You can also expect educational workshops and panel sessions; 50 exhibiting companies; and over 100 company presentations.

For more information, click here:

[rivaldo] 03/11/2022 11:20

Agreed hastings - the implication is that SDI are trading nicely in line with the 9.9p EPS forecast for this year. Which puts SDI now on a particularly low multiple both historically and against comparator JDG.

SDI always guide their brokers conservatively as we know. Forecasts are usually on the low side in terms of core trading, and upgrades are still on the cards as in the past from further acquisitions.

Plus Finncap in their latest note say regarding China/Covid it's "quite conceivable that Atik could win future contracts and forecasts will be raised again".

[hastings] 03/11/2022 08:08

No, we only had one in September and the results are out now in a matter of weeks.So, I think we can deduce from that all is on track and in line with the broker forecasts released last week.

[arregius] 03/11/2022 08:04

No trading update

[steeplejack] 31/10/2022 18:24

Indeed,a chronic lack of research for which the best intentioned 'road to hell' has been paved by MIFID 2.There is no reservoir of research now,no banter or reasoned debate surrounding the smaller caps and contrary to popular belief of your average punter,the marketmakers prices don't reflect some pool of clandestine knowledge.The modern day MM is nothing like the stockjobber of old ,he is a day trader who wishes retire at the market close with a square book and why not.Stock prices simply tack with order flow and sentiment.I suppose this throws up very real opportunities if you've got the courage and funding to back your judgement but hey....we're NOT clairvoyant and there's always the real possibility that a self obsessed nutter like Putin can upset the best laid plans.

[gopher] 28/10/2022 23:10

In some of these small caps definitely as there are people with industry knowledge amongst all the dross and often limited broker research.

I am a newish holder here, the sales mean this is a less strong hold so MM response is reasonable and understandable

[steeplejack] 28/10/2022 09:05

I wish i was clairvoyant :)

[steeplejack] 28/10/2022 09:02

Classic opening......roper doper.Do you think the MMs scan the bulletin boards!I'd guess that the MMs book are still carrying some of that director selling from yesterday and will want to push the price on if they can.

[worldwidet] 28/10/2022 09:00

If China's Xi backs up his words with action and attacks Taiwan, many investors will wish they had the foresight and risk management of a smart guy like Mike Creedon.

[bigbigdave] 28/10/2022 08:52

Think a few mugged out early doors today, happy to hold all mine.

[steeplejack] 28/10/2022 08:04

There's never a good time for directors to sell.According to the 2022 R&A,Mike Creedon holds 713/- options,more than any other director,so along with his remaining stock,he still has a lot of skin in the game.

[alphabeta4] 28/10/2022 07:58

To be fair the Finn note seemed to be more on phasing out the Atik camera Chinese OEM orders to derisk 2023-4 as there is little visibility on it. This then concludes the covid order bounce making the numbers more clean going forward.

SDI have always been very cautious on forecasts with 'surprise' upgrades later. This latest move seems to follow the trend.

[hastings] 28/10/2022 07:33

Is there ever a good time for an exec to sell shares? I suspect that whenever they do sell, people will jump to or arrive at their own conclusions.The same applies to placings which SDI have done a few of over the years. For example when one was undertaken in the low teens a number of investors here berated Mike who at the time was both CEO and CFO. Needless to say the share price duly doubled in less than a year before storming on.As I said earlier, I'm relaxed about the sale, others of course may see it differently which is fair enough.

[steeplejack] 28/10/2022 06:49

True and SDI has expanded exponentially through earnings accretive acquisitions BUT also through organic growth and organic growth is clearly not pencilled in for the 23/24 financial year.It would be something of a surprise if it was given warnings coming from all and sundry with such a dire economic global backcloth.It becomes more difficult of course for the likes of an SDI to make a 'game changing' acquisition the bigger the group becomes as the history of a BTR or Hanson confirms.(Nonetheless,Halma continues to defy the sceptics).I think Mike Creedon's sale is more driven by real concerns about the state of world equity markets than concerns about SDI per se.I hope so anyway!I retain a high level of cash in my portfolio,in some instances near 50%.Most of my forages into equities in recent months have been unsuccessful.Cash is king.

[tkamp] 28/10/2022 06:15

People forget that the way brokers forecast SDI earnings into the future does not include potential future acquisitions. So its not necessarily true SDI wont grow earnings. If they acquire new companies the earnings of those companies would come on top of existing forecasts. As Hastings writes in his blog SDI mgmt said they are still looking at multiple takeover targets so in reality there is a good chance earnings will grow to at least some degree in FY24

[melody9999] 27/10/2022 23:12

Thanks to Hastings for his report which highlighted the lack of earnings growth and prompted me to sell out yesterday. Great company and management and I will be back.

[bsdjj] 27/10/2022 19:38

Looking from afar seems like MC is very underpaid in relation to the value he has created.Given he has been granted new options recently can see why he would want to sell some of his existing holding.Netherless it is a significant sale and somewhat perplexing...

[tkamp] 27/10/2022 18:04

Steeplejack is completely right. Anyone pretending that a CEO selling almost his entire stake is not a big deal is absolutely fooling themselves. This is a bad look.

[steeplejack] 27/10/2022 17:30

Hastings excellent brief did alert me to research projecting a flat earnings forecast for 2024.That’s not a concern in itself,especially in these markets,but its an outlook that suggests a rerating might be hardwon,even on a pretty unexceptional forward multiple in the mid to high teens.


Ken Ford last sold stock back in May 2021 around 185p.I followed him out of some of my holding then and haven’t had cause to regret it.Ken retains a substantial holding of course but not Mike Creedon as mentioned earlier.I’ve always paid great attention to ‘insider’; trading.Its an opportunity cost decision afterall and the director selling clearly feels his money might be better employed elsewhere.I rarely feel that i’m knowledgeable enough to argue with such informed thinking.

[fuji99] 27/10/2022 16:41

Selling almost his entire holding for a CEO is not a good example. He will buy them back half price probably after the crash next year. - Someone told him there will be a market crash early next year ...

[fozzie] 27/10/2022 16:29

He is and they are but it still isnt a great look with the shares trying to rise after a year in the doldrums.

[hastings] 27/10/2022 16:27

He's as entitled to sell shares, personally haven't got a problem with that.