what is to be done?

Throughout history, people have often asked What is to be done? It is a common refrain.

The problems for the retail shareholders of SDL are many-fold

1. We have been kept in the dark for too long, with totally inappropriate disclosures through media outlets, rather than full disclosures through proper channels.

2. We have had a Board which has got into bed with a party with a dubious history and, unsurprisingly, the deal has gone south. When you lie down with the wrong type of dog, you pick up the wrong type of fleas. And to think only a few months ago one of the principals spoke of working for Hanlong after the deal went through.

3. Our shares have been effectively locked up for 22 months waiting for a resolution, while some of the principals of the firm have generated substantial remuneration for themselves, without commensurate accountability.

4. And now apparently, we are no further advanced than we were in July 2011, execpt we have the two permits and we have the resource upgrade.

That has been the cost of Hanlong. And anyone on HotCopper defending the Board is kidding themselves.

But as with all negatives, there has to be a positive. In my view

1. I think we can still get at least 45 cents, simply because this appears to be as much a political transaction sensitive to China, as a financial transaction.

2. The Board can afford to be patient. Their main mistake before was to accept the first offer. Whatever happened to due diligence?

3. Hanlong stands to lose 23 cents a share currently. They now have an interest in reversing their own manipulation.

4. And then there is the possibility of a JV which I would not discount.

My sense is that the project has been signiificantly derisked through the removal of Hanlong. And now is the time for proper due diligence. But I would like to see the Board start to be straight with us for a change!