Sdl Share Discussion Threads

[essentialinvestor] 20/1/2020 08:16

Had a small amount.

[cravencottage] 18/1/2020 15:16

Techno20

My best guess is a positive trading statement (possibly next week) and the market's got a sniff of this..

[techno20] 15/1/2020 19:45

Anyone Any idea on reason for the recent strength?

[cravencottage] 02/12/2019 21:37

Yazz - The only way is up!

Good luck to all holders.

CC

[cravencottage] 14/11/2019 21:37

There]s an underlying reason for the current Sp

A bid aloof possibly?

Atleast £7.50p if this is the reason..

Quality Co

[cravencottage] 11/7/2019 22:35

Some big buys going through today..

Not long to wait now before we see the MM's begin to walk the price up and all of a sudden whoosh = In anticipation of decent numbers early Aug.

All the best

CC

[cravencottage] 27/6/2019 22:37

Essential Investor..

In answer to your statement - I'm convinced at some stage SDL will be bid for as the barrier to entry in translation software co's is off the richter scale..

Meanwhile they are returning to the arena of being " A growth Co" coupled with an increasing divi ( which always appeals to institutions such as Schroders etc)

Also I note directors' have picked up shares at prices higher than current levels which imo bodes extremely well..

The cherry on the cake being the latest broker note targets 650p..

I think it's fair to say the share price at current levels is considerably off the mark..

No doubt we'll see some turbulence along the way but with results due in early August I think it's fair to say the SP's behind the curve.

[essentialinvestor] 27/6/2019 12:14

Interesting company. Surprised they have not been bid for.

[cravencottage] 25/6/2019 22:24

Looks like the end of the sell off today...

A few days of consolidation and then the old grand duke of York marching up to results..

Watch this space!

[robow] 01/2/2019 11:09

Canaccord says BUY with 650p target

[robow] 07/11/2018 13:41

from tThe Daily Telegraph
Questor: buy translation firm SDL for its high barriers to entry, rising sales and improving margins
Questor share tip: SDL's technology and huge team of translators give it strong protection from competition
A good question to ask if you want to gauge how well a company is defended from competition is: how long would it take to build it from scratch?

If the answer is many years, potential rivals are likely to think that returns would be too long delayed to justify the cost and effort.

This week’s stock would take a long time to replicate. SDL, the translation firm, has been in business for 26 years and during that time it has built up a team of about 1,200 in-house translators and 16,000 freelancers.

“That kind of network takes a very long time to build,” said Stuart Widdowson, manager of the Odyssean investment trust. “That, on top of its proprietary technology, would impose high barriers to entry on any new competitor


In fact SDL has just two rivals of any size, along with a large number of smaller outfits. And in the translation market size confers advantages, Widdowson said.

He said the large multinationals among its clients – which include 88 of the world’s top brands – typically wanted to disseminate the same message in all their markets globally.

“The internet has brought about an explosion of content and companies want it to reach customers in more and more countries. That involves communicating in many different languages simultaneously, but managing that process is difficult as you will be using multiple platforms in multiple countries,” he said.

“A large firm such as SDL will have the resources needed – the process management software, the project managers, the automated translation engine – but smaller rivals won’t; they will be more geared to operating in one or two countries.” SDL has operations in 35.

As a result, its customers tend to stick with it. “It is the market leader and in some niches it has a market share of about 90pc,” the fund manager said.

Despite the business’s inherent strengths, there is scope for improvement. Widdowson said that in the past it had been “undermanaged” – “it was built via multiple acquisitions, which weren’t as integrated as well as you’d have expected”, he said.

There is now a new management team, which is working to improve efficiency. “The company will use better ‘middle-office’ and ‘back-office’ technology. For example, until recently the scheduling of translators’ tasks was managed on a spreadsheet but there is now dedicated software in place,” Widdowson said.

The improvements should lead to higher profit margins. “The company is committed to a rise of 1-2 percentage points in operating margins every year,” he said. “They are now about 10pc but we think they should reach the high teens over time.”

When higher margins are combined with the growth in sales that Widdowson and the company expect, there is scope for double-digit earnings rises every year. As capital requirements are light, profits tend to feed through to cash generation. Odyssean expects the firm to be debt-free at the end of the year.

The investment trust likes to value this kind of stock in relation to its sales and said on this measure the valuation (an “enterprise value” of 1.1 times next year’s expected sales) was “not demanding” given the scope to improve sales and margins.

Questor says: buy

Ticker: SDL

Share price at close: 484p

[danieldanj] 05/8/2018 13:21

SDL plc (SDL) Earnings-Reaction to Keep an Eye

[phillis] 19/7/2018 11:57

one of my old favourites (before RWS) and it is now back to basics

and I'm back in at 420p

[phillis] 12/1/2018 16:25

why would a major shareholder (Schroders) buy the day before a trading update?

[deadly] 15/12/2017 19:52

Guess the risks have come home to roost. Maybe overdone?

[phillis] 24/11/2017 11:22

returned this morning with a small purchase
Was a holder for many years in the early days

[hedley2] 16/11/2017 17:28

Anybody any thoughts as to why this share/company is out of favour?

[zipstuck] 01/9/2017 10:19

Margins to improve next year

Sales increasing

Investement this year.

CASH IN THE BANk.

A GOOD ENTRY POINT AT THIS LEVEL

[she-ra] 09/8/2017 19:09

Bit overvalued compared to its peers though. P/E still a bit ridiculous.

[hedley2] 08/8/2017 20:25

Severely punished for the interim results with a lot of investors/punters abandoning ship. As always the drop in the share price seems over done and will be a lesson for the board. New man has always said it's a 3yr plan so happy to give him a chance, but have to admit the £2 a share drop hurts!

[buoycat] 01/8/2017 10:56

Not sure why the share price has reacted so badly. Quick glance shows plenty of positives

[deadly] 01/8/2017 08:55

Poor results.

But nobody following?

[robow] 20/1/2017 08:15

very quiet here. Good turnaround and expects to be slightly ahead of mkt expectations