Encouraging announcement released yesterday and nice bounce in the share price.
With the multiples on this stock stretching has anyone got the balls to sell? I've been tempted many times but i am still holding and have been since 55 cents.
After the realese of the upcoming financials NET debt should be close to nill provided there is no significant capital expenditure.
The final dividend should at least be doubled to 6 cents and could be way higher but you have to allow a fair bit for the necessary increased investment in working capital when a company expands like SDI does, however the company is managing their working capital very well.
It's very rare you find a company that is growing at the rate SDI is with negligble debt and relatively low requirements of capital investment. SDI have completed their payment on the property they bought for expansion in the first half so the second half should only have minor expenditure for fitouts and moving in etc.
The MD said a while ago they have the infrastructure now in place to accomadate sales of $60,000,000 in sales without further capital expenditure so the company has no excuses now to start paying out their excess cash after working capital commitments have been met. If they dont i'll ask them why at the AGM.
Cheers all
SDI Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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