Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
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This is my point.
I think come the end of the day we will be sitting the right side of 30p and then the SP will move according to the update tomorrow.
Nobody is confident of the fair value without the full results. However, a 70% (very roughly) reduction in the SP since all the poor news announcements of last winter looks ridiculously disproportionate, even taking into account the temporary impact of Covid-19.
Can we honestly say that the Sig is worth only a 1/3 - 1/4 of what it was in January / February? That looks very very very unlikely.
I think what investors need to understand is the sp destruction irrespective of the business model across the board and what we are seeing now is that SP are now going back up to an appropriate valuation, considering the wider macro economic picture.
Yes SIG were impacted, as were other players in the sector, however building is a core requirement in the world we live and as the global industry has restarted over the last 4 weeks we have had normality return.
To offset the costs incurred, we have benefited from the furlough scheme, which I think has helped to the tune of £4m. In addition we will have reductions on business rates and other subsidies.
Fair value here is around 50p, hence the buying.
Interesting point that the RNSs of late have mentioned EU sites have been mostly unaffected, anyone have any information on where the most revenue comes from country wise?
I think its safe to say there will be an impact on revenue this year and they have clearly looked to reduce that impact by reducing costs which is a sensible approach. SP has been hammered down expecting an impact but does the impact justify the SP going from 120p to ~20p on reduced revenue for ~2 months. With ~£142m in bank, banking facilities in place and minimal debt risk/reward looks low. I fully expect in 12 months’ time this will be >60p at least.
This is a great opportunity to accumulate and hold for big returns.
I was told last week profits are up this year. Hard to believe I know but could have some truth in it.
Sig employs 9000 staff, 2000 were furloughed, So 7000 still working. Let’s not forget Sig operates in a number of countries across Europe.
“The deliveries on sites are brisk”
Boom
Good to hear the deliveries are back to normal and you are paying your invoices @takenorisk. All sounds very positive
I also have an account at sig ( oldbury mother branch ) and yes what the last guy said was basically correct but things are defenatly picking up and I think the do should go to about 40 p over coming weeks
Espeacially if new ceo gets he’s act together and sorts out the branches from ground up
Sorry to contradict you spoon but I own a ceiling and partitioning company and my main 3 suppliers are CCF, SIG and GO Interiors.
After speaking to Managers and staff at all 3 suppliers several times over the last couple of weeks, there are still at least half the staff furloughed and they are all operating at the moment at around 40-50% of "normal" capacity which is steadily rising.
The deliveries to site are brisk but the walk up trade counter business is severely hampered by the fact that customers have to book a time spot.
This is the same with all 3 companies, and \I would imagine is representative of what is going on nationwide.
Also I can 100% categorically assure you that prices have not gone up due to demand!!! The only prices that have gone up are the ones that were notified pre covid by the manufacturers. I have got invoices in front of me now from SIG for 16 different products delivered to site on Friday which can prove that.
Thanks for sharing good to know they are busy. Business is streamlining with higher margins. All good.
1 day delay is of no consequence, almost certain its auditors working from home And not quite ready, its not in sigs hands. I’m surprised its even mentioned.
Spoon_key, Thanks for that, it's good to hear from people who are involved in the company.
Spoke to my friend who works for Sig again earlier to ask if he knew anything regarding the delay, he didn't but said he had spoke to his manager lately about the company as a whole, his manager said that the price Sig charges are and have gone up due to demand and that things are nowhere near as bad as was first feared, so I asked my friend how busy it is and he said "Put it this way we have already been asked to do overtime" He said they are non stop but did say some was due to backlog of old orders but hes never known it be so busy! He did say what I've been saying, if there is a 2nd wave and its bad then hes worried about the country as a whole. We then rambled on about BoZo and the situation regarding Cummings but I wont go there.
I know this doesn't help regarding todays RNS but just thought I'd give ya a heads up on what he said.