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I don’t have any issues. My first foray into the stock market was to make a huge investment in SIG nearly a year ago. I was a gullible newbie and sold up once I clued myself up. A very tidy profit was made too. However this was beginners luck and I then dedicated myself to becoming a shares expert.
This process is now completed and I now consider to be a highly proficient stock picker. I am now aware of how crap a company SIG is based purely on the fundamentals.
Luckily for the members of this bb I will continue to dispense my pearls of wisdom.
Lynny, luckily for you I am a very successful entrepreneur. I own a very profitable and expanding proper empire which is currently generating nearly £1,000 per day.
I also decided about a year ago to put my entrepreneurial expertise to good effect in another asset, namely shares. This process is now completed. You are the beneficiary of all my hard work.
There is a lot of confirmation bias on this bb and I feel it is my duty to offer some balance. I’m keeping an eye on the share because if by some miracle the company does get turned around it will become a multi bagger.
You heard it here first.
Look. It’s very simple. CD & R obviously don’t want to put anymore money into the company now they know just what a horror show it is. They don’t want to buy it either unlike Wolsey which is a great company.
They just took advantage of a very low share price and will make a nice profit and move on. I guarantee they’ve got a stop loss in place.
Danf, I’ve used the Discounted Cash Flow model and fair value comes out at 60p. This assumes everything goes to plan.
I got out at 57p and am very happy with that decision. The current shares I’ve invested in all pay a dividend and I’m expecting them all to at least treble in value over the next 5 years.
I just can’t see it with SIG as the profit margin is just so low on huge turnover. To my mind there is no point in the company existing and there are certainly hundreds of better, far more profitable companies to invest in.
Why is the company looking to refinance is the question. Usually it’s when they’re under pressure to repay existing debts. Looks to me as if the projected profits are nowhere near enough to cover current debt or provide working capital. So they’ve decided to raise more debt to pay off existing debt before its due and hope to have some left over for working capital.
No wonder the share price took a hammering today.