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SDI - SDI Limited

Discussion in 'Stocks Q-Z' started by JeSSica WaBBit, Jan 31, 2008.

  1. JeSSica WaBBit

    JeSSica WaBBit

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    Hi ASFers,

    I wanted to begin a thread on SDI - Southern Dental Industires to discuss this stock and get your opinions.

    I do not hold any stock in this company but i have it on my watch list.

    Its been a real dog of a share over the past four years and its share price has dropped from about $2.20 to 26 cents where it languishes today.

    I understand the decrease in share price is due to delays bringing to market a new product it has dveloped called 'Riva'. Its a tooth filling material made from sand/glass.

    I also understand that the company will not see profits from this product impact on the bottom line for some time to come, possibly 2-3 years.

    I reckon its one of those shares that might be able to be picked up very cheap in the next 12-18 months and could potentially provide great returns 3 years down the track.

    I like these long term plays and have done well on similar before.

    Anyone have any comments to make?

    :cool::):cool: JW
     

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  2. resbequoi

    resbequoi

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    Re: SDI - Southern Dental Industries

    Hi Jessica,
    Well its been a long long time that I've held onto my sdi shares, I bought in at $1.80!! Sheer stubbornness has me holding on, and I'm a long termer too.
    I have been 'cheered up' by the fact that after the faulty battery issue that dropped the share price initially, the continued downward trend is due to the strengthening dollar and the increasing expense of materials. Also that it is family run company with the family owning most of the shares, so out of sheer need to survive they are committed to turning the company sp around.
    Maybe I am wrong and stupid, but it's for those reasons that i still continue to hold and support this embattled company.
    I have been through some lows with this - see my post on dud shares!
    But I still havent sold.

    good luck to me i suppose:confused:
     
  3. JeSSica WaBBit

    JeSSica WaBBit

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    Re: SDI - Southern Dental Industries

    Hi Resbequoi,

    I am still watching this company and if i can free up some money i will be looking to buy a few at or below 25cents to get things rolling. Depnding on how they go i will look to accumulate, but at present i am invested elsewhere.

    Its been a real dog but thats when i like to buy them, when no body elses wants them or is remotely interested. I am happy to buy and hold, if i was to buy at 25cents i would be hopeful of an exit around $1.00 and looking to hold for 12 months to 5 years if necessary. Not a bad return for sitting on your hands...................

    I just have a feelng they will turn things around but, who knows what will happen.

    Good luck with it, if i take a position i will post on here, meanwhile i will be keeping a close on on it.

    JW :cool::D:cool:
     
  4. tm220

    tm220

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    Re: SDI - Southern Dental Industries

    hi guys,
    just adding to this thread. I've had this stock on watch for a little while now and am wondering if anyone thinks now may be a good time to get in. I know this co. is adversly effected by exchange rates (due to the bulk of income being derived o/s) however I think with the negative markets worldwide the aussie cant stay as strong as it is for longer than another 12 months.
    may be one to sit on for some time but from what I understand the business is strong.
    any thoughts?

    tm
     
  5. JeSSica WaBBit

    JeSSica WaBBit

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    Re: SDI - Southern Dental Industries

    Hey TM220,

    i am still watching it, but, surely it must be near bottom now. I hear the company is relatively good, i have a contact.

    I do not hold but i think if you are willing to sit on them for a few years they could be a good thing.

    But DYOR, good luck with it.
     
  6. Country Lad

    Country Lad Off into the sunset

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    Anybody note the hint?

    Cheers
    Country Lad

    SDI vs Silver 11 Jul 13.gif

    sdi 11 Jul 13.gif
     
  7. shouldaindex

    shouldaindex

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    Just a bump for 2015.

    Doing some research and noticed SDI has had a bumpy journey.

    At the same time it's revenue has steadily increased year on year, so variations on cost/margin seem to have been the issue in the past.

    Reached company high profit and revenue last FY, and seems to have some growth factors to the business.

    The main issue for me would be unpredictability of earnings, given it's an industry which I'm not familiar with, otherwise it has a lot of the fundamentals I look for.

    Any opinions welcome.
     
  8. levin123

    levin123

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    It looks like the market misinterpreted this announcement?

    The announcement reaffirms FY17 guidance, but states that 6 month results to December will be between $2-2.5m, compared with $3m last FY. But due to historically strong 2H's the company remains confident of hitting targets.

    However the price has tanked 33% on close.

    From the update: There has traditionally been a skew in earnings favouring the 2nd half of the financial year, due to seasonality in the regions that the Company operates in. This year SDI expects an even greater skew because of the impact of currency. The Company expects net profit after tax to be in the range of $2-$2.5 m compared with $3m for the first half of financial year 2016.

    Has the market taken that $2-2.5m figure to be full FY17 forecast? A quick careless glance over could construe this due to the way it's worded.

    Or has the price just been trading at a large multiple due to expected growth, and now that guidance is wobbling, the market is reacting accordingly?

    Considering taking a punt.
     
  9. McLovin

    McLovin

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    I'm not really getting how a currency move can be considered seasonal, unless they are in the business of currency forecasting.:confused:
     
  10. galumay

    galumay learner

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    Classic misspricing by Mr Market, all this info was in the public realm already - and people still try to argue in support of the Efficient Market Theory!

    I missed the news until I got home just after the close of the market, so my order will have to wait until first thing tomorrow, hopefully it will go thru and I can double my holding with a nice average down!
     
  11. Klogg

    Klogg

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    The 1st half is generally weaker. I don't think they're blaming currency for the seasonality.

    More importantly, even after adjusting for currency, the top line is OK. Problem sits within the expense lines.

    Also worth nothing SDI have a horrible track record of reporting things properly to shareholders. FY15 NPBT/NPAT forecasts show this. Since recruiting MarketEye they've done a little better, but they really didn't address the reason for the profit drop here.
     
  12. McLovin

    McLovin

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    The way I read it, they're blaming ccy for exacerbating seasonality, but maintaining FY forecast. If that's the case then won't the ccy have to bounce back in 2H?

    I had them for a few years never really felt comfy with them and got impatient so flicked them. Of course then up they went.:rolleyes:
     
  13. McLovin

    McLovin

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    ...And they're back within 10c of where I sold. I'll have another look at them.
     
  14. Tightwad

    Tightwad

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    i've only had a brief look but haven't found any previous half year numbers. assuming 2-2.5 for a half, ideally you'd want maybe 5 for the second to beat last year, not sure if it's doable to have double in the second half.
     
  15. Klogg

    Klogg

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    I only feel comfortable with them because it's essentially a family business. The downside is they pay themselves very hefty salaries, but it does mean interests are aligned.
    I took bought at about 55c late last year and this quickly grew to become my largest position at $1.07. Not anymore, haha.

    Their wording is poor, so not really sure what they're trying to blame. But if you look at their figures:
    - Overall sales increase in AUD terms expected to be 3%
    - Overall sales increase in local currencies expected to be 9%

    Doing the math, I get a 5.5% currency movement. However, there's not enough operational leverage at play for a 5% movement in top line to impact 20-30% on NPAT - something else is going on.

    Given the AGM is tomorrow, why didn't they just wait 2 days??
     
  16. galumay

    galumay learner

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    DOH! Missed an opportunity to average down even further, while I was carefully doing my analysis of the impact of the recent announcement, and deciding whether to pick up some more now or wait until the next results, they bounced up 15% this morning.

    At mid 40c I thought they were pretty compelling, my range of valuation is significantly higher even allowing for a likely 20% hit on earnings this year.

    Sometimes thats the cost of being a patient and slow thinker - by the time I have got to a high conviction decision the horse has bolted!
     
  17. greggles

    greggles I'll be back!

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    Nice gap up for SDI Limited today following the release of their FY18 financial results.

    screenshot-www.aspecthuntley.com.au-2018.08.21-17-36-49.png

    SDI finished the day up 16% to 58c and is currently sitting just below resistance at 60c. With SDI predicting continued growth in sales of non-amalgam products we may see further short term share price gains.

    big.chart-SDI.gif
     
  18. galumay

    galumay learner

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    A little surprising it jumped so much, it was pretty much steady as she goes and all to script. I guess it had been pretty heavily oversold on any reasonable valuation so some reversion was inevitable. I will probably grow to regret not averaging down more when the opportunity was obvious!
     
  19. galumay

    galumay learner

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    Its been a long and patient ride to see this play out, the conviction came from the financial strength, low debt, niche market, founders with skin in the game etc.

    Screen Shot 2019-08-28 at 12.56.49 pm.png
     
  20. galumay

    galumay learner

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    Solid HY report today, again I havent looked at it in detail but a cursory glance suggests its largely positive.
     

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