SCT - Scott Tech

[Snoopy]

Nice rebound yesterday, up 7%, good news for all of us who have been buying in the recent dip. Be $2 soon, maybe !.

My recent purchases were at $1.75 and $1.51. So average purchase price was $1.63. But that 7% rise yesterday was on tiny volume. And it would be reversed if the price goes back to the bottom of the bid offer spread (currently $1.63 buy, $1.75 sell). I would say $2 by the end of the year was a near certainty. My crystal ball is a bit hazy in determining what that year is though!

SNOOPY

discl: Long term holder, with average overall purchase price now 69c.

[In4a$]

My recent purchases were at $1.75 and $1.51. So average purchase price was $1.63. But that 7% rise yesterday was on tiny volume. And it would be reversed if the price goes back to the bottom of the bid offer spread (currently $1.63 buy, $1.75 sell). I would say $2 by the end of the year was a near certainty. My crystal ball is a bit hazy in determining what that year is though!

SNOOPY

discl: Long term holder, with average overall purchase price now 69c.

Yes I think you might be right, $2 might be a while away. I happy to wait a year. My avg is 1.51c

[Lizard]

Yes I think you might be right, $2 might be a while away. I happy to wait a year. My avg is 1.51c

I bought a few more at $1.59 on Wednesday... not many going and I didn't want many for now. Still, happy to see the bounce. Watched the selling for a long time and it felt like a reasonable bottom as it came off the low $1.50's, but guess we will see. I don't hold out a lot of hope for the exchange rate helping them out any in the short-medium term though.

[percy]

The acquisition of RobotWorx should offer good opportunities for SCT.
Liked the announcement so much I brought some shares at $1.82.!!!!

[Snoopy]

The acquisition of RobotWorx should offer good opportunities for SCT.
Liked the announcement so much I brought some shares at $1.82.!!!!

Welcome on board Percy. So you finally followed your mate Mark Waller across. You took your time, but then again no-one can accuse you of not doing due diligence!

I had never heard of "ROBOTWORX" before today. But the acquisition does fit within the wider vision of Scott's becoming the world's leading automation company.

Here is what SCT said about 'Robotworx' in the press release:

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RobotWorx is one of the most well-known industrial robot integrators in North America, with an internet presence that dominates its competitors worldwide. Their internet presence is driven by an extensive portfolio of URL's including www.robots.com. RobotWorx has the capability of integrating multiple manufacturers’ robots, such as FANUC, Motoman, Kuka and ABB, and has implemented thousands of successful robotic installations for applications ranging from welding to palletizing

RobotWorx has been in business for over 21 years and is unique and differentiates itself from all other integrators and from their competitors in their industry. While most robot integrators in North America focus on the automotive industry, RobotWorx is more diverse.

Currently many enquiries are received from businesses looking to install robotic solutions which RobotWorx is unable to supply because it is beyond their current level of expertise. These enquiries provide opportunities to grow the business by applying the vast skill, expertise and experience gained by Scott in providing its innovative solutions to the appliance, mining and meat processing industries.
RobotWorx also receives over 270,000 foreign visits annually to their main website that they have not catered to in the past. These foregone opportunities show great potential to be converted into engineered solutions with the additional skills contributed by Scott.

By applying the RobotWorx digital marketing strategy to the Scott business model, Scott will also have the ability to dominate the internet in areas of Scott expertise, significantly raising its profile in both its key North American market and beyond.

The robot industry is expected to grow substantially, due to its promising output of high quality products at a lower price. With the ability to offer robotic automation for a wide variety of industries RobotWorx, together with Scott, have significant ability to tap into this profitable growing market.

RobotWorx’ CEO and owner, Keith Wanner, will be working closely with Scott to ensure a smooth transition, while the staff at RobotWorx are looking forward to working with the Scott team and to the opportunities that lie ahead.

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SNOOPY

[percy]

Taken a very very long time.Ian Urqhart told me about the company a good number of years ago.He was a pretty big shareholder at the time.I have certainly done very well following Mark Waller at EBO.A businessman I greatly admire.
I went straight to the net and looked up RobotWorx, and putting it together with SCT's announcement ,I can see the sense of it.
I look forward to seeing which performers better over the next 5 years, CCC.ST .Cavotec [SEK 30.20] or SCT.

[Snoopy]

I had never heard of "ROBOTWORX" before today. But the acquisition does fit within the wider vision of Scott's becoming the world's leading automation company.

The acquisition of "Robotworx" is for US$5.4 million, funded by a combination of bank debt (US$4.5 million) and 646,301 shares in Scott (US$0.9 million). I should point out that this will easily be handled by the Scott balance sheet. But it nevertheless signals a clear departure from the 'no term debt' policy of previous Chairman Graeme Marsh. I am not worried, but I would suggest to SCT shareholders that Marsh's fiscal conservatism has served them well through many cyclical industry downturns of the past.

The new policy of diversification is the now evolved board's answer to managing the ups and downs of the various markets that SCT now finds itself in.

The first step in this diversification was the acquisition of Rocklabs, which in hindsight was a master stroke. This acquisition had a very similar structure to the acquisition of 'Robotworx' announced today. Namely, some cash, some shares and an additional basket of shares that would be paid to the company founder if certain earnings targets were reached. Founder CEO of Rocklabs Ian Devreaux, basically worked his butt off during the acquisition period to the extent that prior to FY2014, Rocklabs entirely drove the earnings of SCT for the earn out period to last year. Will this effect be repeated at Robotworx under founder Robotworx CEO Keith Warner? As a shareholder, I sure hope so! Nevertheless I must express some caution at this stage of the acquisition process.

SCTs other attempts at diversification into meat industry and milk industry robotics have so far not developed any material profit at all. Yes I know new things take time. But is still staggers me that upteen years on, and despite the obvious technical success of the automated boning room, the return to shareholders has been effectively zero. I am realistic enough to know that not all technological breakthroughs are easy or make quick profits. Some by the law of averages I expect to fail. But so far all of SCTs diversification success has been achieved thanks to the hard work of Ian Devreaux, former CEO of Rocklabs. SCT have yet to develop any commercial success with any of their other diversifications!

I am now watching SCT with increased viligence.

SNOOPY

[percy]

I prefer viligance.!! lol.

[Snoopy]

I prefer viligance.!! lol.

"Viligence". A combination of 'viligance' and 'vengence' ;-)

SNOOPY

[percy]

"Viligence". A combination of 'viligance' and 'vengence' ;-)

SNOOPY

Right, viligence sounds perfect.!!