Sdx Energy Share Discussion Threads

[roman2325] 07/11/2023 20:19

Investing is about evaluating everything on the table - you don't ever get the 'benefit of the doubt'.

If they don't strike gold it is irrelevant who's on the board - this is going under. That's why its worth less than the car park next door.

Check the share price if we want to know what the market thinks of the new BOD lol

[littlened] 07/11/2023 17:44

Roman stop looking through your telescope backwards.We have a new BOD with enough financial acumen to avoid past mistakes.Give them a chance before forecasting gloom and doom

[roman2325] 07/11/2023 15:27

It doesnt matter how many wells you have if you cant afford to get the product out of the ground. If you don't manage your cashflow you go bankrupt regardless of what you're selling.

And the burn rate is high, Egypt will go in no time

[winnet] 07/11/2023 12:22

not sure it goes to zero based on Morrcco wells. I think the risk is the continued existence of Egypt in the portfolio.

[littlened] 07/11/2023 12:05

We won’t need to borrow once Egypt has gone

[roman2325] 07/11/2023 11:21

Exactly why i'm invested here! The taps wont be turned off tomorrow and of all the smaller guys SDX are strategically in a strong position but they're all chasing the same pool of shrinking capital so you need a bit of luck. The smart ones (I invest in others) take the financing when its on the table...the others (who think they know better) don't and are left with Aleph.

If they strike it big on these wells I'm a happy holder, if they don't this goes to zero

[winnet] 07/11/2023 11:12

but all the evidence shows we'll need it for the rest of the time I'm above ground.

[roman2325] 07/11/2023 10:42

Haha - but try and find a lender who isn't in Russia or India willing to finance a new hydrocarbon project. They're not allowed to. And no one on the planet wants to held liable to a lender in India (assuming you can find one)

There is no market for drilling for oil even BP and Shell will tell you the game has changed

[littlened] 07/11/2023 10:01

You old cynic !!

[roman2325] 07/11/2023 09:24

All companies have to rebrand towards hydrogen/renewables because you cannot get financing if you're using it to drill for hydrocarbons. So you raise and say its for renewables, but spend it digging for oil.

[aspect100] 07/11/2023 00:45

I didn't know it involved hydrogen,but I see they call it "a new strategy".

I think they should stick to what they know.

[roman2325] 06/11/2023 22:01

He cleared that with the Egyptian Treasury did he?

And Winnet I agree: its pricing no deal and no plan. The deal goes through, just not as richly as maybe we would like. As for the plan...they have a fortunate position in Morocco but rebranding towards hydrogen etc that they know nothing about is a mistake. Hopefully these wells come good....they can start approaching lenders again and the share price gets a comfortable re-rating. A lot of 'if's there

[littlened] 06/11/2023 17:07

Roman SDX can expatriate ALL the proceeds from Egypt.CFO confirmed this to me today

[winnet] 06/11/2023 16:23

Say it does go through, the key question is what then... without any plan, we are technically in no better position. I am sure they have a plan, but it would be nice if they communicated this a bit better.

I hold a significant amount and the reason for this is I am comfortable with the downside. The risk-reward here is compelling. The market is pricing in no deal and no plan!

[roman2325] 06/11/2023 15:42

And the big question being what they can get out of the country. No point selling for $100m if you need to convert it into Bitcoin

[littlened] 06/11/2023 15:13

We know that the price is substantially above the 3/4 cap threshold which is £6m .What is substantial ? Who knows but it represents a lot more than 4.2p per share in my book

[roman2325] 06/11/2023 14:34

Firstly if you're a distressed seller (which they are) you will always find a bidder. They could have offered $5m for all we know. Secondly multiple means more than one.

My point being if $25m were on the table they would have had a line out the door of possible lenders - they had Aleph. And where are the insiders buying if its undervalued 5x etc?

Again, all questions for the next shareholder meeting. I have a position but i'd rather better understand my downside than guess the upside

[littlened] 06/11/2023 12:13

In that case why did anyone bid ? Egypt needs hard currency and having a multinational increase its presence is a good deal for Egypt.No doubt incentives were given and why would SDX accept anything less.Remember there were multiple bidders

[roman2325] 06/11/2023 11:38

If you do business in Egypt you'll know its incredibly hard getting paid and the situation has got worse, not better since the last update. The deal still has to be signed off by the government hence why the market isn't pricing it any higher. No one (and highly likely this includes SDX) knows how much they will get paid, and when. No buyer is going to pay anywhere near NAV when its surrounded in so much risk

[littlened] 06/11/2023 10:18

Now confirmed by SDX.Up to 100%

[littlened] 06/11/2023 09:23

All of it.These assets are being bought by a multinational who will bring in as much as going out

[roman2325] 06/11/2023 09:07

How much of that do you think they will get out of Egypt?

[littlened] 04/11/2023 17:14

Egytian net assets worth $25m as at 30/06.I have never heard of a businesss being sold for less than asset value.This will solve any cash flow problem

[roman2325] 04/11/2023 08:38

A question for the next shareholder meeting. They have new management who will want to stamp their own authority on it so the last thing will be shutting and divvying it up

[aspect100] 03/11/2023 12:37

This company should be sold,and the proceeds returned to stock holders.

I wonder if they have considered that.