Small_Holding
18 Jan 2020
SDX - Where are the CEO interviews? Yesterday was another good day, a 4% rise with 476,738 shares traded. It again shows how the share price could rise quickly if we had significant buyers but to put it in perspective, yesterday only 0.23% of the shares in issue were traded. The buyers yesterday were retail investors and some will be part of the “buy on rumour, sell on news†brigade. With an update due there is increased appetite for the shares but even if the update is good some will sell, it is just how they operate. I have seen so many companies recently announce good news and the share price falls, it is just an investment strategy that some follow, buy on the rise and sell on the news. If they are making money good luck to them. A strong update from SDX however should generate increased interest and that should offset any selling. As things are I am quite happy for the update not to be released for a couple of weeks because the anticipation is generating interest and the management cannot stop investors buying even if they wanted to.
suicidal_tendencies
17 Jan 2020
SDX - Where are the CEO interviews? The chart is telling me not worry too much. The whole oil and gas sector is down and SDX has come down with it. SDX is in a bottoming process at the moment and there will be ups and downs and more buying opportunities. tvc_b33d7286c5b1ee21ef2434ddbace4bb2.png1211x1350 109 KB
Small_Holding
16 Jan 2020
SDX - Where are the CEO interviews? We are in agreement that SDX are not going out of their way to promote the company. In that way they are behaving differently than most investors would expect a listed company to behave. The reasons why they are doing that are unknown at the present and we can only speculate as to why, silence from the company just makes that worse. I am sure that the investment media and analysts are well aware of this extended period of silence. They will make their own assumptions as we do. What I would say is that during an economic downturn when investors are looking for a solid, cash generating business with no debt, you could argue that SDX should have fared a lot better than many other companies that are based on hope and expectation. In the event we had an awful year and I put that down to a lack of transparency. The reason I am still invested here are the strong fundamentals of the business and the fact that I am significantly underwater on my investment. If SDX were not generating revenue and had high debts I would have cut my losses and sold. My belief is that IF the intention is to take the company private, the price we would get is higher than the current share price. I would still lose money but my losses would be lower than they are currently, for that reason I continue to hold. Having spent hours trying to fathom what is going on here, the only logical conclusion I can come to is they are trying to keep the share price artificially low and the only reason I can see to do that is facilitate taking the company private on the cheap. That would fully explain the media silence because they wouldn’t care what the media or the boards write because they will be out of it soon enough. I sincerely hope I am wrong but my views won’t change until someone from SDX gives an interview clarifying what is going on and why.
suicidal_tendencies
16 Jan 2020
SDX - Where are the CEO interviews? I am all for believing in conspiracies if there is evidence to suggest. I know they are much more prevalent than most people who use the term ‘conspiracy theory’ do (which is the majority of the population). Here, I don’t know either way. It’s just a set of options. I think one thing we can say here is they are certainly not going out of their way to increase the share price (like other companies do) through interviews/paid research reports/other types of pumping etc. I really don’t believe this is incompetence/lack of knack in the area. You can’t take their stated strategy at face value. You can’t do that with any statement by anyone, Government, companies, certain billionaires… There is too much going on behind the scenes that we just don’t know about to have much confidence about anything if you’re honest with yourself.
Small_Holding
16 Jan 2020
SDX - Where are the CEO interviews? Unfortunately the actions of the management here leave me with little choice other than to start to believe the conspiracy theories. If you don’t buy into these conspiracy theories, then I’m afraid I have to throw that straight back at you Why would the management of a listed company, that has a declared strategy of looking to make acquisitions, not want a higher share price? and Why would they want the share price to remain low? The benefits of a higher share price are obvious if they wish to raise finance. The strategy of SDX from their website states; “SDX Energy also intends to leverage its strong balance sheet, benefit from early mover advantage and its strong regional networks to grow through the acquisition of suitable high value asset opportunities in North Africa.†I am genuinely intrigued as to what explanation you have for why a company would want a low share price, either short term or long term.
suicidal_tendencies
16 Jan 2020
SDX - Where are the CEO interviews? That all sounds a little conspiratorial Small_Holding I don’t think the issue here is bad management and investor relations. I think it’s one of the following; They just don’t care about improving the share price short term They want the share price low - for whatever reason
Small_Holding
16 Jan 2020
SDX - Where are the CEO interviews? As I have said before the decision to not release news on each of the wells in Morocco in turn but to bunch them together and include them with the January Update, was a mistake in my opinion. The January Update will be judged on its merits positively or negatively. An optimist could say that by combining all this positive news into one RNS gives the maximum impact for the company and the share price. However, if SDX want to negate the impact of the positive drilling campaign news all they have to do is ensure the January Update contains just one item of bad news in it. That one item of negative news would be the only thing that is remembered and the update would be viewed as neutral or at worst negative. What I fully expect them to do is announce the first few wells and hopefully the positive outcomes in the update but to cancel that out they will announce that North West Gemsa is no longer financially viable and will cease production soon or with immediate effect. Released individually we could have had 4 or 5 positive RNS’s and one negative. Lumped together it just gives one neutral update. I hope I am wrong but we will soon see.
Small_Holding
14 Jan 2020
SDX - Where are the CEO interviews? The rise in the share price over the last couple of days is most welcome. With very little volume the share price has risen impressively. Yesterday the number of shares traded was just over the average volume and today looks like it will repeat that again. It does clearly show that IF there was a fairly large demand for the shares the share price would fly. Even more reason to promote the company in the investment media after the January Update.
Small_Holding
12 Jan 2020
SDX - Where are the CEO interviews? Given that South Disouq producing first gas, the commencement of a 12 well drilling campaign in Morocco and an increase in South Disouq reserves of 35% failed to produce an interview from SDX, what is likely to generate one this year? The Operations and Corporate Update is due at the end of this month. It will include the first drill results from Morocco but I wouldn’t expect a media interview, more likely another Presentation on the website. The 2019 Year End Financial and Operating results will be released around 22nd March 2020. This will be the first set of full year results since our guide and mentor took over. I am hopeful that when these are released someone from SDX, even if it is the cleaner, gives some sort of media interview. By that time it will have been over a year of media silence. If we don’t get one then it would probably mean the CEO goes into the AGM around 17th May 2020 never having spoken to the investment media, for most CEO’s this would be embarrassing and leave him open to criticism. For that reason I think we may get an interview from the CEO sometime after the Annual Results are released but before the AGM. With the AGM approaching he will also be mindful of showing he is doing an amazing job and should get even more shares under the Long Term Incentive Plan around August 2020. Perish the thought that he isn’t incentivized and takes his silence elsewhere. There is a chance of an interview if the more speculative wells at Lalla Mimouna find large quantities of gas in Morocco or the biggest prospective wells in Egypt Salah and Young make big discoveries. However, given what happened in 2019 in total silence I am not so sure. If we fail to see any media interview after the 2019 Annual Results, we may go right through 2020 with the same media silence as last year, if that happens I fear the worst for our investment here. Finally, Boris Johnson the UK Prime Minister earns £158,000 or around $207,000 salary. If you double his salary it still falls short of our CEO’s salary of $450,000 plus any shares allocated under the Long Term Incentive Plan. With Country Managers in both Egypt and Morocco, a relatively small workforce and no company promotion duties, it begs the question; What does our CEO do all day?
Small_Holding
08 Jan 2020
SDX - Congratulations to SDX Energy! S/T I have obviously considered that Mr Reid is just a puppet for Waha or Ingals, it would go some way to explain the media silence. However, if they intend trying to take the company private they are taking their time about it. The de list from the TSX started the conspiracy theories but nothing has happened since. We know as an AIM only company both Waha and Ingalls could have increased their holdings to 30% but neither has. The more time that passes without any move from either of the two biggest holders, the less I am inclined to believe the conspiracy theories. I have written to Mr Menhali at Waha to outline my concerns about the lack of media coverage, when he first joined the board. I will continue to write to him using the Waha email to voice my concerns because at least that way I think there is more chance of him actually seeing my correspondence. If as you suspect they are the puppet master then it won’t make the slightest difference but if they aren’t they at least get a flavour of the frustration felt by retail investors. The media silence has created a cloud over SDX and I don’t expect that to lift until things change and we have a spokesperson who speaks to investors and convinces them that this is a genuine company with bright prospects. As theprior says why wouldn’t a genuine boss of a listed company want to promote his company, especially when the primary objective is to create shareholder value. I also have concerns about any future acquisitions or mergers. With the SDX strategy of putting generated revenue back into the ground, it means that when an attractive company comes onto their radar they will need to raise cash, probably through issuing equity. With the share price at these ridiculously low prices, they would need to issue at least twice the number of shares to raise the same capital, than they would need to do if we had a more realistic share price. This is when your conspiracy theory would make more sense. With little appetite for the shares currently from anywhere, an equity raise of any size would rely on the big two taking the lion’s share. This scenario would allow both companies to get a large chunk of SDX at bargain basement prices. We know if they buy on the open market the share price would rise rapidly because of the relatively small number of shares in issue. By taking a large chunk through an equity raise it is all done at the same low price. This to me is the biggest current danger and it would explain why they are so keen to keep the share price low. It would also explain the strange behaviour of bunching RNS’s together into one update, rather than announcing each well in turn. Of cource Mark Reid could put all these concerns to bed with one in depth interview but he chooses not to. Failure to do that just increases concern and the cloud over SDX gets ever bigger.
suicidal_tendencies
08 Jan 2020
SDX - Congratulations to SDX Energy! Because as said by Paul Welch himself (I’ll try to find the YouTube video later), the top two shareholders call the shots here. Yes the SDX personnel run the company day to day but in terms of promotion and other things like that not related to executing the exploration and development strategy, I’m sure it’s Waha and Ingalls that dictate what is done and what isn’t.
theprior
08 Jan 2020
SDX - Congratulations to SDX Energy! All plausible but I agree with SH about failure to promote the company. Unless Reid has similar motives himself. I mean, why wouldn’t the boss of a public company promote them ?? Beggars belief! TP
suicidal_tendencies
08 Jan 2020
SDX - Congratulations to SDX Energy! Have you considered that SDX’s major shareholders - Waha and Ingalls - for the moment don’t care that the price isn’t going up? Now you can speculate as to why; i) perhaps they want the price low to facilitate a cheap takeover - can’t fathom that one though ii) they want the price low to buy up cheap shares to increase their own holdings or takeover the company themselves when the time is right iii) they just don’t care what the price is because they’ve got their holdings and are in this for the long haul and are happy to let what I see as a long term strategy unfold and build a good sized, very profitable energy company in the MENA region
Small_Holding
08 Jan 2020
Sdx - congratulations to sdx energy! bunting.jpg891x207 22.3 KB CONGRATULATIONS TO SDX ENERGY!! TEN MONTHS OF INVESTMENT MEDIA SILENCE Unbelievably it is exactly 10 months to the day (8th April 2019) since Paul Welch, the former CEO, gave a 6 minute interview to Proactive Investors. Since then it has been total media silence, with no investment media interviews, no investment conferences, seminars or events attended. Only 2 months to go until they can claim a full year without ever speaking to the investment media. Quite amazing and surely they deserve the highest accolade as the worst listed company on AIM for failing to promote the company to investors via any medium. They still apparently naively believe that potential investors will wake up one morning and have a light-bulb moment; I must invest in SDX Energy. They believe that the fundamentals are so strong that they don’t need to tell potential investors what the company is about or the plans for the future. They must also consider that treating the investment media with utter contempt instils confidence in the investment community. Given the AIM index rose about 11% in 2019 and at the same time the SDX share price fell 38%, they must be of the opinion that those figures make SDX a compelling recovery play. We have now had seven months of Mark Reid’s strategy of ‘KEEP SILENT AND OUR ACHIEVEMENTS WILL WIN THEM ROUND’ well clearly that strategy is not working. There have been three significant items of good news in his tenure, South Disouq producing gas, the start of a 12 well drilling campaign in Morocco and now an increase in reserves at South Disouq, all three have not produced any interest or appetite for the shares and the volumes are still painfully low. WHY IS THAT? The very strategy Mark Reid has chosen to adopt is exactly the reason why this share has done absolutely nothing in seven months. There was never anything wrong at SDX, the fundamentals were and remain very solid. The only problem they had was a CEO who got carried away with predictions and timelines, that is it period. What investors want is Mark Reid or his deputy to tell the market, mistakes were made, they won’t be repeated, there are no plans to take SDX private, they are not deliberately trying to suppress the share price and the future is very exciting. Only then might we see renewed appetite for the shares based on the fundamentals and the exciting prospects for growth. If I was a new investor and this share was recommended to me, I wouldn’t touch it with a bargepole because even though the fundamentals are strong I would be extremely suspicious of the management of any AIM company that had gone ten months without ever talking to the investment press. I would (and do) find that very strange, alarming and a major concern. Hindsight is a wonderful thing and now with the benefit of hindsight Mark Reid can clearly see he was wrong, there is no other obvious logical conclusion from his first seven months in office. If this was a loss making business with huge debt when he took over, he could say I have steadied the ship and kept the share price on an even keel. However, when he took over there was very little wrong but he still managed to make a monumental error of giving the impression that nothing has changed and subsequently neither has the share price. Whatever your views, to put this in perspective SDX Energy has 204,723,041 shares in issue, the average daily volume of shares traded is 266,242 shares or 0.13% of shares in issue. Yesterday after announcing a 35% increase in reserves at South Disouq (yes the share price rose 5.6%) but ONLY 272,721 shares were traded. IT IS NOT ROCKET SCIENCE, when you invest in a company the fundamentals and potential may attract you initially but ultimately it is the individuals/management that convinces you that they are genuine and they persuade you to invest. SDX for ten months has been faceless and the company and the share price have suffered accordingly. Put a confident plausible spokesperson to the investment media and investors will buy, that person may not be the CEO but they need a public face.
suicidal_tendencies
07 Jan 2020
SDX - RNS - South Disouq reserves upgraded 35% to 89 BCFE It’s a good increase in reserves. Previously, as stated in some of their older presentations, South Disouq was only set to produce from the current wells until 2023/24 (if my memory serves). Presumably, this now means a longer production window at 50mmscf/d which is of course welcome.
