Sdx Energy Share Discussion Threads

[scrutable] 28/8/2018 14:12

Incredible results! Where else can you buy shares of such a strongly growing company yielding approx £36m/pa net cashflow for as litle as £125m cap.

Is this the absolutely cheapest growth available on the LSE? - or anywhere else in the world?.

In the building of assets they surely have another record drilling in six months, 23 gas and oil wells, most with commercially extractable hydrocarbons, - for $45m?

With the share price down 3.5p this morning forgive me for justifying the further investment of all my own free cash in extending my position. I don't think I could do better despite many attractive alternatives in the rest of my portfolio.

[haideralifool] 28/8/2018 14:00

One of the features (dare I say) risk factors with SDX is that is can be thinly traded for many days.

Based on that observation, here's my 2p:

What this means is that when there is a significant news release people who want out have one of the few chances of doing so. If there isn't a barnstorming case to buy, I guess it'll lead to some weakness.

Happy to be corrected on the above.

[tournesol] 28/8/2018 13:12

Small top up by me.

[saucepan] 28/8/2018 12:57

shakeypremis: thanks for your thoughts.

[hiddendepths] 28/8/2018 11:28

I think there was a hefty seller this morning and it was unconnected with the figures.

It looks as though the overhang is being gradually mopped up and when it's gone, quite possibly later today, we could easily be back up to the 60p mark in short order.

[hiddendepths] 28/8/2018 11:28

double post.

[erinvale] 28/8/2018 11:22

Thanks to all for some useful perspective.

[sleveen] 28/8/2018 11:22

shay

I don't disagree with the bull case, perhaps the share price is taking a breather following a steady recent 15% rise?

[shakeypremis] 28/8/2018 10:59

Saucepan, I would say that the share price doesn't really include any valuation at all for upside to come from near term expected production at South Disouq. But that doesn't mean the market isn't selling this off because of that uncertainty. Still it seems irrational.

Sleveen, they just connected 3 extra customers - one being Peugeot - which are expected to add another 1.3mmscf/d demand which will increase production to 6.7mmscf/d from the current 5.3mmscf/d. So they would seem to need an additional 3 similarly sized customers or 1 or two with greater demands and they would then hit the lower end of the 8-10mmscf/d target. The customers will come, I don't doubt it. $10-$12/mscf vs $16-18 for bottled gas. No brainer for a company in Kenitra. This extra 1.3mmscf/d demand will add around $4.5m revenue gross per year or about $3.5m net to SDX (after their 75% WI) with most of that $3.5 being profit. That's at a gas price of $10.5/mscf (which might be on the low side of what they get for these new contracts) and for 340 days production a year.

[saucepan] 28/8/2018 10:46

SDX has still to resolve the price it will be able to charge for gas in Egypt. That continues to add some risk/uncertainty.

[sleveen] 28/8/2018 10:43

erinvale

sp fall might be due to doubts over reaching the 8-10Mscf/d sales target.

[darola] 28/8/2018 10:42

If SDX doesn’t start to achieve fair value soon, surely it becomes an acquisition target, rather than it seeking out M&A opportunities?

[tournesol] 28/8/2018 10:38

Same here. Looks like a management team which is delivering on its promises and a company which is forging ahead. Either I'm missing something that the sellers have spotted or vice versa.

[shakeypremis] 28/8/2018 10:16

Yeah, results do look really good. Receivables still quite high but are coming down. Most recent 3 months to end of June only circa $1m was paid down.

[hiddendepths] 28/8/2018 10:12

I must be missing something..... All looks really good to me.

[erinvale] 28/8/2018 09:58

Surprising to see 7% fall in share price after what seems an excellent and positive RNS. Any views?

[plentymorefish] 24/8/2018 18:47

I was thinking more about introducing fireworks into all that gas!

[franki8] 24/8/2018 17:55

eh guess we'll find out. Swings and roundabouts!

[plentymorefish] 24/8/2018 16:32

I'm really not sure that's a good idea!

[ih_680539] 24/8/2018 16:25

topped up a few today, hoping come tuesday we'll have some fireworks

[onlyroadtoheaven] 23/8/2018 16:12

Looking good here. Shhhhhhhhhhhhhhhhhhhh.

[darola] 23/8/2018 13:48

I like that SDX is quiet at the moment - as far as forums, twitter etc, is concerned. Ticking up on low volumes and quietly going about its business out in the field. Can see us getting a nice steady rise from here.

[hiddendepths] 23/8/2018 12:48

Hopefully that's the end of the seedcorn investors selling out!