Sdg at a deep discount now but a grubby story. Probably a good buying point. Cfx the better managed and run business and greater growth momentum now. Also probably very cheap. I'd buy both here
I bought into SDG a few years ago as I liked the new management team and felt that their focus on licensing, the US market and a big reduction in SKUs was the right thing to turn the business around. I still think that these things are true but you've accurately identified that maybe shareholders won't really feel the benefit with the current management team.
I actually sold out at a loss earlier in the year when it became apparent just how much the business was struggling ex-licensing and that the road to growth could be quite extended.
Hopefully Lisa will make a success of SDG but I'll need to see some green shoots before considering a re-investment.
There is a listed peer of sorts in Sweden called Embellence group that owns a brand called Cole & Son which is similar to Sanderson's heritage brands. (https://www.embellencegroup.com/)
Embellence trades on single digit P/E and appears well managed
Great write up!
I certainly share your view on managements and incentives.
But as a result I think they are a prime take over candidate.
Balance sheet certainy gives a margin of safety.
Defintely adding to my watch list!
Thank you, Tom!
Sdg at a deep discount now but a grubby story. Probably a good buying point. Cfx the better managed and run business and greater growth momentum now. Also probably very cheap. I'd buy both here
Thanks for putting together this research David.
I bought into SDG a few years ago as I liked the new management team and felt that their focus on licensing, the US market and a big reduction in SKUs was the right thing to turn the business around. I still think that these things are true but you've accurately identified that maybe shareholders won't really feel the benefit with the current management team.
I actually sold out at a loss earlier in the year when it became apparent just how much the business was struggling ex-licensing and that the road to growth could be quite extended.
Hopefully Lisa will make a success of SDG but I'll need to see some green shoots before considering a re-investment.
Thank you, Damian.
Let's hope so!
Good research!
There is a listed peer of sorts in Sweden called Embellence group that owns a brand called Cole & Son which is similar to Sanderson's heritage brands. (https://www.embellencegroup.com/)
Embellence trades on single digit P/E and appears well managed
Thanks. I'll take a look at it