Srt Marine Systems Share Discussion Threads

[yumyum] 08/8/2016 16:45

Agreed TP, LaVal...SRT management deserve good rewards for excellent performance. I am perfectly happy and feel all three are very deserving.

[trident5] 08/8/2016 16:44

...only if share price targets are met…

Well that's simply not the case is it. 75p and 125p are targets - 50p is not.

[the prophet] 08/8/2016 16:43

LaV

completely agree with your take on this.

[lavalmy] 08/8/2016 16:41

And Peniket, if not more so.

Ftt, you don't use options like you think. They were granted options previously and it is up to them whether to exercise them or not, as long as they have vested.

But the real stuff here is that these schemes are in effect salary, taxed efficiently, and only if share price targets are met. They don't get much basic salary, and Tucker and I laughed at the AGM about how his bonus had quadrupled and nobody had mentioned it. For reference, that was from £6k to £24k.

SRT are very parsimonious, including with director renumeration, precisely because the non-execs have such large personal stakes.

[the prophet] 08/8/2016 16:29

imo, all three are fully deserving of this, esp Mr Tucker.

[yumyum] 08/8/2016 16:25

SRT board meeting - ''Hmmm...share price has gone up much faster than expected seeing as we have not yet signed any of those contracts on the dotted line. Hmmm...shall we wait a bit before pricing those share options we agreed to give our excellent management as incentive and reward ? Hmmm...better do it quickly before we announce any juicy contract awards!''

[fft] 08/8/2016 16:21

They already had over 4m option between them, nearly all at single figure exercise prices (2.5p and 9p mainly). You would have thought they could have used those first, and then had some more options starting at 75p.

I don't think I have ever seen a remuneration committee issue options below the current market price that could be exercised immediately.

I sincerely hope that there is no talk of a salary increase or a bonus for many years for the execs.

[yumyum] 08/8/2016 16:11

a filtered tit

[eezymunny] 08/8/2016 16:04

Hmmm... lovely 2.7m share options. Virtually nil cost (0.1p/sh)

Should be illegal IMO.

Oink oink!

[lavalmy] 08/8/2016 15:32

Of course, SRT is hard to value. The way I look at it, and have done from the beginning, is as follows:

1. Fixed costs should be covered by the gross margin on 'core' sales. This has never happened, but even Lapping repeated the mantra at the AGM.

2. Projects should be valued as one-off's. So £200 million pipeline plus £70 mn order book at 50% gross margin, taxed at 20%, gives 85p a share. Those projects further out I don't include but offset against the risk of some of the pipeline not showing up.

3. Recurring revenues which haven't shown up at all yet, but are dependent pretty much on number two above. It is the scale of these that is the really big unknown. ABSEA revenues at practically 100% margin, software maintenance at high margin, service revenues at say 50%, all fairly predictable and long term. My guess is that we will see between 5-15 p per share of this combined, at the end of five years. So 75p to £3 for that depending on P/E etc in the future. For now, it is more at matter of faith, so call it 25p until we see some of it showing up, e.g. Ecuador.

That doesn't mean that I would be happy to pay £1.10 today, not that I would have to. But it does give me a lot of comfort adding at current levels, as, to my mind, there is sufficient margin for error in my calculations for me to be materially wrong and still come out okay.

[fft] 08/8/2016 15:27

What is good is the volume. It enables people to buy in size, but also enables those who want to get out to do so quite easily.

IMHO, the price looks toppy on current revenue/earnings and especially on this years forecasts from WHI. It is all very well trying to beat expectations, but when the broker forecasts don't include the Indonesia deal(afaik), then the situation is a bit crazy.

Of course, one or two more decent contracts and the valuation looks under cooked, but we should really get some estimates before knowing how undercooked.

[2vdm] 08/8/2016 14:58

Well as long as they haven't bought solely on T trades with a view to making a quick £,then they will be alright eventually. The share price has been on a huge run recently and we need more news to keep it going fwd on a sustainable basis. I suspect that in 12 months we will have much more information to be able to value SRT more accurately. All fellow LTHs know its a great little company in a niche but now expanding market with a product way out ahead of anything else currently. On top of that it has landed a great contract with more in the vsp. But how do you put a true value on it at this stage? It will depend on investment perspective. For those who have spare cash, can wait and believe that SRT will be the stock to hold,then whether they buy at 50 or 60p is probably largely irrelevant. Le Val explained his views about acquiring 3% recently. For the like many of us who aren't in that position and have also been taking the longer term view, the questions will be at what level do we sell/part sell if/when we see surges like today's and/or at what price do we top up.Hard share to trade and not sure that I want to. Apparently Xylos (not sure who he/she is/ see post 3142 above)says add at 49p.Did he say why he thought 49p is the price?

[the prophet] 08/8/2016 14:30

baaaaaaaaaaaaaah!

[effortless cool] 08/8/2016 14:26

As one new flock of sheep arrives, another lot departs.

[the prophet] 08/8/2016 14:22

thanks for that Xylos, a doubler plus is very possible in the next two years.

Looks like the MM's have played a blinder today in terms of sucking them in and spitting them out!
or perhaps that's the IC/ST effect, not sure what time his column comes out?.....

[loobrush] 08/8/2016 14:21

Simon Thompsons column today says Sell price risen too high.

[a0469514] 08/8/2016 13:21

Here is the conclusion. Penny shares are not meant to own 90% of a global market. But srt is doing it. Srt is the only company on the planet capable of delivering these AIS systems and much of the world is suddenly realising they need them. I am forecasting it to more than double in the next two years. But AIS is clearly catching on, and the total addressable market is some Ludicrous numbers like 26 million vessels worldwide. Who knows where this could go? Add at 49p.
Xylos

[yumyum] 08/8/2016 12:52

.....there's always second hand....with sticky seats (old jam).

[dieseltaylor] 08/8/2016 12:49

"If we get to £2 and I have let it all run, I'll be popping down to the Aston dealership."

It never hurts to look : )

[lfc4ever] 08/8/2016 12:30

If we get to £2 and I have let it all run, I'll be popping down to the Aston dealership.

[yumyum] 08/8/2016 12:12

Mine is £2+

[lfc4ever] 08/8/2016 12:00

A..14- what are his targets?

[yumyum] 08/8/2016 11:37

It may be quite helpful for SRT to have this higher market capitalisation, when discussing with potential term contract entities.

[a0469514] 08/8/2016 11:34

I am a subscriber to the Penny Share Letter and the new chap Sean Keyes seems very good. I am also a long term holder of SRT and his article is accurate and super bullish. In fact I would definitely have bought more, based on the article, if it was not already by far my biggest holding.
Xylos