Hi YUMYUM,
I watched it on the train home yesterday, What I heard was a confident claim of $420m of contracts to be closed before the year-end. Great news certainly, but undoubtedly price sensitive.
Yes, they're not certain yet, yes ST has a long history of over-promising and under-delivering, but the price is up 40% since the webcast and there should have been a trading statement. |
If those contracts are signed then the days of an independent SRT may be short |
EC, what is your take now that you have seen the webcast, or did you not have time to see it yet ? |
I don’t want any dividends or buybacks as I bought for growth. Perhaps if SRT ends up in the FTSE .! |
The fire was detected by guard personnel in Bakamla RI, which is thought to have started from the 6th floor," said Gugun, Sunday, September 29.Gugun said that the 6th floor was used by the National Commission (Komnas) for Women. Meanwhile, the other floors that caught fire were used by the Bung Karno Foundation and its parties. |
@goodapple 14770 - maybe not - if the short circuit that apparently caused it had anything to do with SRT kit or installation :(
Fingers crossed. |
And in other news: it seems there has been a fire in Bakamla's HQ.
Replacement kit required? |
C5: The only dividends from SRT that I have managed over the past decade or so, took the form of several very nice cakes, a (vintage) jar of jam and an SRT ball pen.
A £ dividend would be very nice, then share buy backs later. |
Hopefully we'll get what we all appear to want. However, the evidence is that our UK shareholders are not interested in holding onto a company until it becomes large and certainly not interested in size, if it involves placings for working capital, even for signed contracts. |
YUMP. If the half dozen major shareholders collectively refuse to sell, the UK can have its own 'significantly sized tech. business'. I will only sell if MR T convinces me that it is the right thing to do.
I am anticipating vast amounts of cash at year end and the debate will be
A. Dividends. B. Share buy back. C Dividends + share buy backs. |
I'm pretty sure that the UK will never have a significantly sized tech. business that continues to grow into anything major, for more than a few years, unless we have some protection from takeovers.
The US vulture funds are strategically on it all the time, looking for anything that has captive markets and especially anything with recurring revenues.
Our only hope is if our government do what the French did a couple of times, and declare such a company a 'nationally strategic business' and block it. (I forget the exact phrase.) |
 LAV... You have nailed it. Airbus. Leonardo and the Israel company know that SRT is the global leader.(any news about CLS these days?) The obvious way forward for one of them is to buy out little SRT, which has developed such unique technology and an impressive customer base. However, the major shareholders are not sellers. Ocean Infinity would also like to buy SRT. I suspect that they approached Mr T and he probably knew the thoughts of his major shareholders. Offer £500 million and we can talk. Mr T knew he needed more cash to see the company through to the 'sunny uplands' and allowed O I to take a major stake. This allows them to get to know SRT properly and also places them in pole position for the eventual buy out. I would not be surprised to see O I participating in future contracts. Did you note Mr T mention 'beneath surface' operations in his webcast today? Will O I have an offering in the forthcoming M E contract?
Although the major shareholders are not in a hurry to sell, we might see a strategically unsolicited takeover approach. If someone offered 60 p tomorrow, they would probably pick up 15 to 20% of the company which would be a good platform for the eventual take out.
Interesting times lie ahead. Luck those who bought recently. |
I think that opportunities come their way anyway as no-ne else has a system. But if someone else were to be awarded a contract, say a defence company who said that they would adapt their milspec Navy system so that it became a more civil platform and they succeeded, then SRT would be in bother.
As yet, no-one has developed a rival and no-one will just for the sake of it. They will not spend money without a contract and hopefully will not get contracts without the finished product. |
A useful warmer upper before the 2024 accounts are released later this week-let’s hope the jam is still fresh. |
Agreed plus the more installs they have the more reference sites they have and the more opportunities that will come their way, snowball effect.
But they have to sign them up and get moving !!!! |
Agreed plus the more installs they have the more reference sites they have and the more opportunities that will come their way, snowball effect.
But they have to sign them up and get moving !!!! |
My view is that the three long-awaited contracts will push the price to the record levels that we saw last year briefly. The real catalyst will be this new ME contract, worth almost as much as all three and with no lengthy gestation period.
Tucker was at pains to point out again that the bulk of what they are working on forms only a small part of their customers overall plans. If that is so, the real value of these initial contracts far surpasses the near-term monetary value. Incumbency is everything and it has long been a worry that the longer the wait the more likely someone with deep pockets could elbow SRT aside and become that incumbent. Conversely, the more SRT can get that initial phase delivered, the more likely they are to be bought out by a big player. I hope that they will not because I see more value running with the business than selling out early. |
Have been watching and waiting and although I feel we'll have a pull back over the next couple of days / weeks and when the accounts are published. I bought a starter position today and will add on those pull backs (and on contract news).
It's been forever jam tomorrow but maybe just maybe we're starting to see some actual traction. If so I agree with the sentiment that we'll be re-rating quickly.
I did a quick check on the directors remuneration and all looks very modest Tucker on £225k, share options priced at 50p, 75p 125p, 150p, 200p 250p 300p.
Cash looks tight, current projected runway to April 2025 and that will obviously be extended if one of the contract milestones is hit (£45m from Indonesia would be lovely) |
BTW I had a look at UKEF 23/24 accounts and in the Indo-Pacific region they only managed to underwrite £377 million of new business. SRT's £135 million is therefore significant.
I also get the impression that their political masters would like to see more action in that region (fast-growing economies etc) and that UKEF would too to diversify their portfolio.
They do a monthly milestones section at the beginning. I expect to see October 2024's entry to include £135 million for SRT's Bakamla project. |
C5
Oman had a dramatic change in leadership starting in 2020, which given COVID etc, is not that long ago. It also has a long coastline which borders Yemen on one side. Kuwait hardly has any coastline but it too has had a change of government recently.
From listening again, it would seem that Bahrain is to be signed before he goes to the other country tomorrow. I doubt that he would get the nod for two at the same time. |
Has anyone been foolhardy enough to do a quick calc as to what the share price might be by New Year if $420M worth of contracts get signed? 🤔 |
No RNS needed as nothing new. I've lost count of how many imminent/within weeks type statements we've heard. Let's hope this time is different, as if all four contracts start before year end I'd imagine we'll be off to the races! |
Any thoughts on the $200m ME country, apart from Kuwait?
Kuwait has been talking for about 8 years and has suddenly got its act together and appears to be pushing SRT for a signing. When ST says he is in the ME, I suspect that he is spending time in three countries. It will not be just ST from SRT visiting the ME. I sometimes think that shareholders fail to understand the amount of work that is entailed in educating / persuading potential customers about what the SRT offering is. Many Shareholders just look at the contract size and estimate the profit margin at about 28%. Some shareholders moan that the company has spent lots of money on development and fail to understand the amount of work that it has taken to create this world leading company. We should be VERY proud of the SRT team who, against very long odds, have created a global business that is beating the likes of Airbus and Leonardo.
I anticipate that there will be a brokers note when Indonesia and Saudi are finally signed. Because there is a lot of kit in stock there should be impressive cash flows for this half year. Hold onto your hat when you see those figures!!
When Kuwait? is signed, SRT will be the undisputed leader in MDM systems. Fortunately for us there are no institutions above 3% yet. There are a handful of shareholders who control in excess of 50% of the company. I understand that they know the potential of the company and are not sellers. When the cash starts flowing the company can increase its payroll to allow it to deal with all of the work. I once bought into a carpet company that grew 45 times. I anticipate that we shall see £3 per share and Mr T will get his well earned shares.
PS,
If oil rich Kuwait is spending $200 million on a system, how much will neighbour Saudi spend? Will MBS want Kuwait to have a better system? |
even after today's price rise the company is still valued at less than £60m ($80m approx). If those 4 contracts start in the next weeks (it looks like Oct/Nov for all of them really) and more following behind in the pipeline then SRT Marine looks very seriously misvalued at the current share price. |
Just watched the presentation and would whole heartedly agree with that summation |
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