The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
You’re right about the construction boom. It will be the biggest of all time and will last until 2026. However you’re very wrong about SIG. Insulation is a commodity and very low margin so the share price will not do well as there will be very low earnings at best.
I’m an expert in all the products they sell. Trust me, they are a low margin business and at best will make small profits going forwards.
You are not going to do well investing in such a business. It’s obvious and I can’t understand why people can’t see it.
There is nothing so strange as folk.
It’s very simple. If a company is not making good profits or projected to do so in the short to medium term then it is not a good investment. SIG is a low margin business and nothing is going to change on that front ever in my opinion.
I’m sure. Why everyone ignores the fact that there is no dividend and profit margins are extremely low is a complete mystery to me. It shows that all the people on this bb that are bullish on SIG don’t understand the basic principles of investing in shares.
A useful way of looking at a business is to see what’s its market cap is and profit. I’m going to be very generous and project that SIG is going to make £9.3m net profit in 2021. Now ask yourself a question. Would you be happy with that kind of a return on £527m? If not then why are you investing in the company when there are thousands of better ones out there?
I don’t harbour any ill will towards the company. I left because I was head hunted yet again (SIG also head hunted me). SIG was my first large investment when I was a gullible newbie like most people on this bb.
I’m now an expert on shares so ditched my SIG holding near the peak earlier this year. I now realise that investing in this company is only for clueless gamblers who know nothing about profitable share investment.
I’m just doing my bit to counter the incessant confirmation bias prevalent on this bb and at the same time offer some excellent investing advice.
What’s not to like?
Sleep easier in your beds tonight. Short term decent rise today. Looks to me that 50p is about right for the foreseeable future.
However be warned. Mr Market will eventually find the share out. Make the most of it. Ultimately the only way is down.