Scientific Digital Imaging, increased to 3.5%

Scientific Digital Imaging (SDI.L AIM All Share, Market Cap £50m, 52p, 3.5% of JIC Portfolio and 0.0% of JIC Top 10)


I have increased the holding to 3.5% of the JIC Portfolio.


As we come up to its 30thApril year-end,¬†focus will soon switch to April 2020 and April 2021 forecasts. On current forecasts for April 2020 the share is valued at 15.6x earnings for 32% growth, giving a PEG ratio, (PE ratio / earnings growth) of just 0.52. On Stockopedia it passes Jim Slater‚Äôs ‚ÄúZULU Principle‚ÄĚ screen.¬†


Given its buy and build strategy, I would expect those earnings forecasts to be increased as the year progresses making the shares look even better value. 


In short, I think there is a good chance that it will be re-rated from the current 16.5x April 2020 forecasts to 20x or so, which would give upside of around 30%.  

There should be plenty of newsflow, with based on last year, an imminent year-end trading update to start things off. 

I paid 52.4p per share. 

Screenshot 2019-04-23 at 13.50.46