holland44
22 May 2019
SDX - Q1 Financials Good final question, and PW, Mark Reid and Co will probably say they have no idea either! They could point out that sentiment has been terrible towards small-cap O&G explorers and explorer-producers for a couple of years now, especially on AIM, and seems to be getting worse: there’s just very little appetite for risk in commodities, notwithstanding the rising oil price. See www.thesharehub.com for some useful thoughts by that investor in miners and oilies on the current market and the increasing departure of institutional investors from commodities and AIM, in favour of ETFs, algorithms, and tech and private equity. It is frankly ludicrous that SDX is valued at £50 million, given its turnover and potential profitability if it didn’t spend everything on capex, but if there are very few investors looking at companies like this, perhaps it is perfectly possible that the normal, supposedly sensible models for valuing productive assets can be simply ignored, perhaps for years. PI shareholders will have to be extremely resilient to keep holding in such a market environment. I would hope that the incoming CEO would look at the market cap, the money coming in, and the prospective returns from South DIsouq, and say you know what, it’s time we cut back on our capital investment and paid the shareholders a dividend! That would help the market sit up and take notice. A stronger share price would also help see off takeovers and reduce the dilutive effect if the company does ever seek new capital by issuing shares.
holland44
22 May 2019
SDX - Director buys I suppose it’s better than nothing, though putting in £20K is hardly a ringing endorsement.
Ripley94
22 May 2019
SDX – M&A activity SDX… XXXX I could of waited and got cheaper ( G ) likes it today. Directors have bought as posted in below post . Can buy for 24p maybe.
Small_Holding
22 May 2019
SDX - Director buys Following on from Friday’s purchase of 50,000 share by Timothy Linacre, good to see our Interim CEO Mark Reid bought 84,185 shares yesterday.
Small_Holding
22 May 2019
SDX - The investment case Apart from PW giving wild inaccurate timeframes, most of the rest could just be bad timing. I don’t have a problem with de listing from TSX if it has been done purely to cut costs. PW has been giving us BS for quite a while and he was always going to get found out. The timing just before a TSX de list and at the same time as this complete debacle called Brexit, it is a pretty awful cocktail. Nothing is going to happen until after the de list from TSX and with the European elections tomorrow/results Sunday markets will remain fragile. If, as expected, the Brexit Party wins big, the fear of a no deal will rise and we should get more market turbulence. As I said above I would average down but the whole of my portfolio is pretty depressed at the moment and I’m sure that is true of many retail investors, especially if they invest on AIM. With a market cap of around £50m or US$64m, SDX are generating around US$50m in revenue without South Disouq and they probably have US$10m in cash. I fully appreciate that revenue is not profit but they have enough reserves to sit on their hands for 12 months if they so wished. With sale forecasts for Morocco appearing to be flat they don’t need to drill 12 wells. Now they have cleared the decks of bad news I am confident a good CEO should turn this round quite quickly and with such a low forecast for Morocco it shouldn’t be hard to beat it. Every investor in SDX can see that all SDX’s efforts should be focused on getting South Disouq online. If the new CEO can’t see that he shouldn’t get the job. Things would look so different if SD was going live July 1st 2019 as promised.
