SDS-Under the radar

[lewinsky]

Keep an eye on SDS. They have recently announced their first quarter result. NPAT for the three months of $3,545,000. this included a one-off partial recovery of $800,000 relating to a damages claim.
They expect further improvements in the second and later qtrs of the financial year. They are 36% geared.
The profit for the full year last year was $1,972,000.
They are in a great sector. Drilling equipment supplies to the mining sector.
By my calculations they are on a pe of around 5.
They have been groomed for sale.
Can't see much downside here.
Someone may have information as to why they are so low?
Falls into a similar camp for me as IMD and PCG.
Disc: hold all three.

[Z_Man]

I also looked into SDS after their last quarterly report.
They do look very cheaply priced financially.

I did some research and came up with a few unanswered questions/issues:
1. The company has been "On the market" for some time. Why if they are such good value?
2. Past conflicts between the main shareholder and management.
3. Family court order (marriage breakup?) requiring transfer of shares from main shareholder to his wife.
4. Other large shareholders have been unable to sell at a reasonable price. Perhaps this is the reason for them being offered for sale.
5. In the past, the comany has been a buyer of other companies. I am surprised at the way they are now being offered for sale.

Overall there seems to be alot to divert managements attention from the core business. I am concerned that if a take over is not offered for the company, the core business may suffer in the long run.
Alternatively, there could be some bad news hidden somewhere.

[davidrob]

quote:Originally posted by lewinsky

Keep an eye on SDS. They have recently announced their first quarter result. NPAT for the three months of $3,545,000. this included a one-off partial recovery of $800,000 relating to a damages claim.
They expect further improvements in the second and later qtrs of the financial year. They are 36% geared.
The profit for the full year last year was $1,972,000.
They are in a great sector. Drilling equipment supplies to the mining sector.
By my calculations they are on a pe of around 5.
They have been groomed for sale.
Can't see much downside here.
Someone may have information as to why they are so low?
Falls into a similar camp for me as IMD and PCG.
Disc: hold all three.


Thanx for that tip ... Lewinsky....

Will quietly put SDS on my Watch List.

Kindest Regards,

Robbo. :):)

[lewinsky]

Cheers Robbo and the Z Man.
Remember I am based in Auckland so I may not have my ear as close to the ground as you in AUS,so any feedback or information is appreciated.
I have been very happy with my investments in IMD and PCG. And very happy with your tips in SEN and BMX. Not so sure on MTN. I'm in there but theres a hole in my pocket right now.
Cheers,I owe you some cold crownies if I ever get to Melbourne.Actually thinking of getting over there in Feb with the golf clubs under one arm.
Regards
Lew

[Lizard]

Just started looking at this too Lewinsky.

Presentation out today.

[Damo79]

Very timely in bringing this to our attention Lewinsky. Up 14% from yesterday at the moment. Wish I'd had money to take the plunge 'cause it looked very inviting. Still considering getting in at the current price, but I'll give in most of the day to see where it's heading I think.

Good work

Damo

[lewinsky]

I hope that some sharetraders did some research on this and followed me in. Currently sitting at 87.5 cents. Currently up over 40% since I posted late November. The half yearly for this should make interesting reading. So to should IMD and PCG.If you are in doubt about the mining company finding minerals,buy the company that supplies what is needed to explore. IMD,SDS,ASL,PCG,BNT all should benefit. SDS has the added bonus that it is being groomed for sale. More to come I think!

[Lizard]

Hi Lewinsky. It jumped up pretty quickly with that November presentation, so I didn't get in. I went with STS instead - another one you might like. It has also gone up by 40% in the last two months...

[lewinsky]

Takeover at $1.14 which was a bit lower than expected,however I substantial gain from where it was in November.There have been bigger movers but looking back over the news on this rarely do you get your profits underwritten!
Time for a couple of crownies this weekend.

LEW

[Lizard]

Nice work Lewinsky :)