Alas, SDIX investors are left holding their d*cks again. What once was a food safety company is now barely a company at all.
Remember the good old days? Remember the quarterly calls when Birkmeyer would trumpet the next big thing, only to never speak of it again? And what about Matthew Knight? I think he tried, but this company has never seemed to have direction, as if searching for a mission.
Remember how terrorism was going to be big for the food testing business, how the Katrina disaster was going to boost the water testing business, how ethanol production was going to be huge in testing for mycotoxins? Remember when the company incorrectly accounted for work in progress, and how they missed important filing deadlines, had to restate previous years’ results and were ultimately delisted for several months? Those were the days!
I personally miss the heated discussions between eternal optimist (read: head in clouds/head in sand) StevieThePatriot and realist Gabby as they argued whether SDIX would see $5 or $1 first (you win, Gabby). Poor Stevie was going to own a double-digit stock and would ride off into the sunset with Gabby on his arm one day. Haven’t heard from him in a couple of years.
And now that it’s all gone, it appears this plan of liquidation has been in place for a long time as the company shopped it parts on the street. The water testing business was sold to Germany’s Modern Water for $5.5MM, and Romer recently bought the food safety testing business for $13.5MM. One must ask what was intended for the GAT segment if the chief scientist brought in the shepherd the project was shown the door. And what are the prospects for this division when Becton Dickinson tears out your heart and eats it in front of you? Not good.
Surely this company cannot remain public. Was all this part of the long range plan by Becker, et al, to get out from under – to go private or simply sell the GAT business and walk away? We should know soon.
So there you go, bag holders, it’s over – time to find another #$%$ little penny stock to put your ill-founded faith in so you can dream big once again. Perhaps some will have learned, however, that while quality costs more, there’s a whole lot less risk and more return over time.