Srt Marine Systems Share Discussion Threads

[baynet] 18/1/2024 11:42

recording on website

[yump] 18/1/2024 11:41

Pinkfoot are you having a competition of your own, to mention cash more often than ST says “imminent̶1;.

Only I reckon you’ve won !

For goodness sake take the prize and give yourself another challenge.

[pinkfoot2] 18/1/2024 11:32

Thanks Baynet

[baynet] 18/1/2024 10:43

After listening to the recording He said since placing "Very strong balance sheet" and "very secure cash position"

Just noticed 3 new jobs at srt all posted yesterday on Linkedin

Principal Systems Engineer - Infrastructure
SRT Marine Systems plc · Cardiff (Hybrid)

Principal Systems Engineer - Sensors
SRT Marine Systems plc · Cardiff (Hybrid)

Senior Computer Aided Design Engineer
SRT Marine Systems plc · Midsomer Norton (Hybrid)

[pinkfoot2] 18/1/2024 10:36

Did he mention cash/debt CM?

[countryman5] 18/1/2024 08:40

Over the years I have watched several of these web cast. This is the most relaxed and informative that I have ever seen.On the various parts of the business we kept hearing 'we are just at the start....' I will be very surprised if he does not hit the forecast for the end of March. What PE will the market award to such a fast growing company that is the global leader in a new industry? 30 times historic PE? I noticed that he mentioned East Africa for the first time. Africa and South America have such enormous potential with coastal waters supporting large economies and their fish stocks are being enjoyed by China and others. Obviously finance is a problem, but now that Indonesia has cracked the UKEF nut, the model is ready to roll out across the world where there are stable governments. My thoughts on East Africa are Kenya where the US is building a base to allow the US navy to have a presence. I suspect that next door Tanzania is also stable enough to warrant UKEF support. I suspect that Anthony Clake knows the company EXCEEDINGLY well. When is he going to pounce with a knockout bid?

[alter ego] 18/1/2024 08:27

Just watched the web cast. ST seemed extremely coy about saying anything much about OI. Curious, I thought.

[yumyum] 17/1/2024 22:37

plus options of course. wtf? Options as well? wtf?

[yumyum] 17/1/2024 22:31

£225,000 per year for a part time job. I suppose the company makes a lot of money.

[supernumerary] 17/1/2024 21:50

The runes are always accurate - it's the reading that's tricky.

[buck581] 17/1/2024 21:47

I hope it’s more accurate than the last one.

[goodapple] 17/1/2024 18:46

Read the runes time tomorrow 08.00

[pinkfoot2] 17/1/2024 18:25

Excellent post Kinbasket

The reality is the shareholder base comprises middle Englanders who want to see a British company punch above its weight.There are no institutions because they left a while ago-got bored/fed up with the broken promises.

It’s clear ST has some good connections in sunnier climbs but nobody is going to buy this without some tangible evidence of profit and cashflow-those old chestnuts that make the world go round and provide something tangible to value.

We live in hope but the year end is rapidly approaching again-given the lumpiness, it’s another one down to the wire for me

[fft] 17/1/2024 01:24

To expand the above.(since profitable companies have gone out of business)"Turnover is vanity, profit is sanity but cash is reality"And SRT have had a shortage of cash for many many years. Just look at the number of placings there have been and the amount of debt placed via the Cayman islands. If the contracts had all come in within 6 months of being imminent, things would be very different. But, at the moment, there is a possibility the company will be cash constrained again later this year. Rather than SRT going off to the Caymans again, OI could buy some convertibles. Takeover by stealth.....

[pugugly] 16/1/2024 20:05

kinbasket:- Too true - Or in the words of the late Sir Jack Cohen (Tesco)
Turnover is vanity but profit is sanity - Unfortunately SRT has neither and as you say too small to register on any institutional screens.

Unfortunately the days of cheap money have gone.

For yump - Still on my watch list but still can see no reason to get back in while getting some 5% on cash,

[yump] 16/1/2024 18:51

I suppose we can hope that there are enough pi's still in search of growth stocks, that they will spot SRT once it gets going. There are precious few to choose from except the usual latest thing shares and those blow up. So its possible that a % of pi money chases a smaller and smaller group of shares.

Agree about institutions. They are often quoted as buying in when they haven't and won't - its just wishful thinking by investors. Until there's actually a holdings RNS, although there are still hand-picked SME funds as far as I know !

[kinbasket] 16/1/2024 17:33

In reply to C5s 13884 and this bit in particular.

She speculates that 2024 will be the start of a substantial re-rating. There are three factors that will drive this change, No.1. There will be an increasing recognition of these undervalued stocks. No.2. Cheaper money assists company balance sheets and leads to No.3 which is a takeover upsurge which becomes self-fulfilling. As shareholders receive cash from takeovers, they reinvest in the smaller pool of companies remaining.

A few years ago I would have agreed with most of this. But one of the things I've learnt is to pay attention to which way the wind is blowing. "value will always out" is a long time classic but I think no longer true in the same way.

The last decade has seen the creep of passive management progress to a surge and lately a tsunami. The idea that markets are driven by humans sitting behind desks making judgments about value and investing accordingly is history. Almost 40% of the US stock market is owned by passive funds. Vanguard is the largest shareholder in 2/3 of the S&P. It's just computers taking in massive pension flows and allocating according to an algorithm. Buying and selling billions of dollars worth of stock daily, regardless of quality. Index funds, ETFs, Target date etc etc..

David Einhorn of Greenlight capital has spoken a lot about this in the last year. Greenlight is a fund built around seeking out value and waiting for it to "out" but he's had to change the way he works because of passive. There's a short clip here where he explains it. Well worth listening to.



It's also worth listening to everything Michael Green of Simplify has said on this subject. The market of today is not the market of five or even three years ago and it isn't ever going to be.

Anyhow, that's a long winded way of getting to my point which is that for SRT (or any other decent smallcap) to make headway in terms of shareprice, it needs one of a few things to happen. Recognition isn't one of them because no-one is looking. Even if some-one is looking, (the last active manager in a darkened room) given the nature of SRTs shareholder register (i.e all small privates and no institutions) an active manager with enough money to move the price isn't going to buy in the market and undermine their own position. So I don't think a deep pocketed buyer is coming here to push up the price.

For it to move it needs to make a profit and start paying a dividend or buying back stock. If enough of the profit starts making it's way to shareholders, eventually there will be competition to be a shareholder. But until then it's a story and see above, no-one is listening.

Or. Option B, it gets sold to PE or VC or industry etc.

Those are the outs.

I still have all my investment here although I flipped my new shares. I don't however expect it to rise gradually as the story unfolds. No one is reading it. I'm realistic that I either have to wait for my share of the profit or hope for a sale of the business.

[supernumerary] 16/1/2024 16:32

I share your concerns, but if OI was leading a project it would hopefully be a lot more successful at closing deals and getting them running. Of course if someone else is leading a consortium, they're managing the contracts and controlling the margins :¬(

It's a tough old world out there.

[lavalmy] 16/1/2024 15:22

Yes Super, I see your point, though I would think that effective technologies that already exist would be kept firmly under wraps and away from some of the countries where SRT is hoping to have some business.

It was with trepidation that I read part of C5's original clairvoyant post about a potential 'strategic' investor being able to jump-start SRT's presence above or below sea-level (I can't remember his exact phrasing). SRT can hardly do baby steps yet in their own segment and that only by falling over every year or so (six months this latest time). Their overheads creep up every year already such that whatever margin they might make, if any on some of these contracts, will get swallowed up. The last thing I would like to see is SRT going off on some tangent. Last time it meant that the 'core' wasn't selling in any volume and here we are eight years later with sod all and diluted by 50% or so. Not something I am prepared to put with again

[supernumerary] 16/1/2024 14:33

I think SRT are going to become more and more defence-oriented - inevitable in the current state of the world. I'd envisaged a port or perhaps a choke-point like the great canals as being a possible area for cooperation - Ukraine has demonstrated in the Black Sea that underwater drones can be a potent force in an enclosed area.

OI could do the underwater mapping and monitoring, with SRT doing the surface (and possibly even air, sooner or later) monitoring, and integration of the results. If you really want to protect a major port, that's what you're going to need.

[yump] 16/1/2024 14:20

Feels like a better investment for us and SRT, than it all coming from bucket shops (sorry, I mean professional bookrunning brokers).

[lavalmy] 16/1/2024 11:36

I really don't see much co-operation between Ocean Infinity and SRT. Swarming a area with orange submarines is diametrically opposed to pèrmanent coverage of a large area or a number of vessels. Any subsea surveillance system would be very military as well rather than SRT's civilian system.

Clake might find it difficult to extract the alpha from one of Finncap notes.

I suspect that their investment is a bit of a punt on a promising business.

[yump] 16/1/2024 10:38

Sometimes when I’m day-dreaming I imagine where the share price would have got to if a general bull market coincided with SRT entering the maritime defence market with what they’ve got and the widespread issues with maritime tracking around the world.

A world where entire garages were emptied to make way for jam storage.