My reasons for staying with SDA

Ok so being an SDA shareholder for the past year or so has sucked a little (but still excellent if you bought near the ipo). I've thought it over and I'm going to stick with the company and thought I would share my reasoning:

1. CEO is buying $1.7m worth of stock at today's prices. The only reason to buy such a large amount of stock is because he is confident that he will make money out of this transaction.

2. While organic growth was weak in H1 because of the well known collapse in spending by energy companies, the company is guiding to organic growth in H2 and we have seen the recent contract wins that will deliver this.

3. Energy is now a smaller portion of the revenue mix and the new acquisition gives exposure to a fast growing segment of maritime (cruise ships). Satellite communications is still a growing industry.

4. Valuation is attractive. I estimate close to the average for the market. I think SDA is an above average company and so I am happy to buy it on a market multiple.