Member Info for 2reincarnated

Hope I'm wrong but a takeover is a long way away. They happen when a company is undervalued in terms of what the profits are, growth prospects and debt. This company ticked all those boxes before the Coronavirus took the SP from 70p downwards. The 70p was the floor based on the profit warning. In the past we have seen companies " on their knees" like Corus (British Steel) at 4p and not taken over, yet at 60p they are taken over. That just shows how important the current performance has an impact on companies.

long term this will prove to be a solid investment. If you are looking for a quick 25%, you will get it. Even if the bottom is 70p which I think is not the bottom, you will be rewarded within weeks.

Jeffrey the Dow is falling but not badly, yet. There is mounting belief in the US that stocks never bottomed out in March and the rally that followed was "artificial and unstainable" The Dow is wildly overvalued and stocks in the UK will pull back to their March lows and then will be punished for the second wave that will unfortunately be seen.

Capita won't be in FTSE 250 for long!! As for volcano to suggest it's in the FTSE 100 is a joke, is Capita really up there weigh the likes of Glaxo, Shell and Vod ?

Thanks for yet another honest post Trenners. I said and maintain 50p, but if it only drops to 60p, are many on this BB really going to say " ha ha ha ha you were wrong, you said it was going to drop to 50p and it didn't." There is a strong case for saying Melrose hasn't really recovered from the "March crash" it should really be £1.50. Many shares of solid caompanies have doubled or tripled. If the markets now go the way we think they are, this can only test 72p soon.

It did triple in weeks not months from 20p to 60p. Can see this at 20p again soon and from there further falls. Very difficult finding a bottom,I saw this at 20p and thought we were going to see an emergency Rights Issue.

Don't get me wrong, this is going to £2 eventually, but just looking at what lies ahead, this will be re-visiting 72p soon.

No No No!!! In the current climate you need an element of guarantee. With SIG nay not hit 60p anytime soon, but won't hit 6p either. One if the companies you mentioned hit 4p once upon a time.

https://www.marketwatch.com/story/a-much-more-severe-selloff-looms-in-the-stock-market-strategist-warns-2020-05-10

You hit the nail on the head mate

https://www.marketwatch.com/story/a-much-more-severe-selloff-looms-in-the-stock-market-strategist-warns-2020-05-10

https://www.marketwatch.com/story/a-much-more-severe-selloff-looms-in-the-stock-market-strategist-warns-2020-05-10

I agree things cannot recover 100% for a long time. I think the biggest concern is the fact the Dow has risen to a worrying level, so high that it can now only go one way. Many in the US feel this type of pattern has the " hallmark of a crash" i.e. a trough in a recession. It has risen on the expectation of a short recession followed by a quick recovery, that may not happen.
A drop will take a lot of shares down, but SIG should hold well because it has little debt, but sales and profits will be hit and hence the SP will take a long time to hit 60p.
It must be appreciated that when SIG sounded a profit warning in 2016 it said Brexit was a factor, strange, because most felt Brexit would not happen.
We must therefore ask ourselves what would the SP be today if the word "Coronavirus" didn't exist? My guess is 80-90p max.

Welcome to Reach!! If you had waited a while you would have got in for 20p

Thanks Professor if you get this message!! For me to sell at 40p I would be taking a 25% loss, but feel strongly in bad news coming from the US, we may soon even see deflation and all these stimulus packages etc, do not solve the underlying issues. I will go onto the sidelines for a while and feel I can either re- enter or buy into something else which has taken a battering.

Yes 50p soon and then the rest down to 20p eventually. But back upto 45p in a flash too, hence the fall to 45p in the first place. Stocks do funny things mate.

Thanks for your post. What concerns me is the fact the Dow Jones has hit such a high level and 74% of US analysts think it is heading towards a double bottom. In other words we may see again what we saw in March, meaning SIG would be hit, but not as bad as some stocks. The UK is going to be hit by a recession and Brexit.Even with a trade deal, things are going to be difficult because Italy, Spain and even France will be weak for a long time. I really hope I'm wrong, but I will sell at 40p.

Thanks for your post. Agree holding this stock will see you rewarded. However, we are going to see a recession and you refer to the full year results. These results are " bang in the middle of a recession." In other words the recession is going to be long, given the slowdown we are going to have. You only need to look at the cost of the Furlough scheme, where is this money going to come from? All in all I think full year 2023 is the earliest we will see the SP reach what we have seen in the past. I hope I'm wrong. Getting to 40p, something that could happen next week would be great for starters. Where do we go from there? Do you sell or hold? What happens if the US markets plunge? We need to be realistic about the timescale to 60p

Thanks for your detailed post, all we can do is wait and see. I looked at these when they were 28p ish, but Investors Chronicle advised against on the grounds of a cash call, whether it be a Rights Issue or a placing. To my amazement these then hit 65p.

No more like 50p soon?