SDI Ltd

ASX:SDI — Company Profile

Last Close Price (0%)

$0.520

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#26

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4

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PennyPincher
PennyPincher
Added 3 months ago

  • Rapid decline in amalgam sales offsetting any growth in composites/glass inomers/whitening/dental equipment
  • Competition is leading to reduced pricing/decreasing margins in non-amalgams
  • Poor capital management- long term high working capital, lazy balance sheet  with cash in bank yet maintain debt
  • Nepotism: Company 'run like a private company' for the founding Cheetham family. Daughter handed CEO role by father without consideration for other internal/external candidates.
  • Question capability of new CEO in her role and current CFO
  • Large remuneration for Executive/Chair, and long history of related party payments (e.g. 'consultancy payments to Chair over many years). Poor long term returns for non-family shareholders
  • Underperforming regions- UK, South America, US an ongoing problem. Over-promised, under delivered.
  • Current factory needs improvement

Strawman
Strawman
Added 5 months ago

The business historically focused on amalgam, but has steadily been shifting it's product mix into higher value, proprietary products -- mostly aesthetics & tooth whitening. Amalgam is arguably in a structural decline, especially in richer, developed countries. This will act as a drag on sales in the coming years, but that will diminish as amalgam becomes a smaller and smaller part of the mix. As of H2 2018, Amalgam was around a quarter of total sales

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