Market's view on SDX Energy
Published on April 2024
- Stock watchers are concerned about a plan to bleed the company dry and then dispose of it.
- Dissatisfaction is expressed about a mysterious buyer acquiring assets on installment payments, suggesting that the funds might be insufficient and quickly consumed by administrative costs.
- A stark prediction suggests the company’s value might drop to zero or near zero due to a high rate of cash burn and no effective plan in place.
- Concerns are raised about the company’s valuation, highlighting the challenges in the oil exploration and hydrogen sectors, with a particular emphasis on the difficulty of competing with major players and turning a profit in hydrogen.
- The process for approving significant company sales, like SD, which would require shareholder approval, is underscored.
- Doubts are cast on the company’s reporting and transparency, with suggestions that negative news might be withheld longer than positive news.
- General discontent with management is voiced, particularly regarding their communication with shareholders and the pace at which company plans are proceeding.
- Concerns are expressed regarding the potential mismanagement of assets and the strategic direction of the company, particularly in reference to handling outstanding debts and operational expenses.