Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Sam, you're just sore because you didn't take my excellent advice about putting a stop loss in place when the share price was much higher lol!
I'm keeping an eye on the share as it's possible it could turn into a multi bagger if it turns around. I also need to provide some balance and education as this board is full of rampers and the gullible could easily be sucked in by your bs.
Don't get too excited. The share is currently trading in a range and unless it breaks out above 50p its going nowhere for now. If it goes below 43p then hold on to your hats as the only way is down. That's what I expect to happen.
It's time for some more education. What's ROCE I hear all you gamblers and so called traders/investors ask? It's a very important metric you should be looking at before investing in any company. It's one of the top two metrics I look at. How do SIG compare on this front? Terribly is the answer.
ROCE is the return on capital employed. It's calculated as Operating Income divided by Capital Employed which is defined as Fixed Assets + Working Capital or, said another way, Total Assets minus Total Current Liabilities.
SIG has a very poor score of -22.8%. It ranks abysmally as 114th out of 122 companies in the Homebuilding & Construction Supplies sector.
This is a massive red flag and means the share should be avoided at all costs. You may notice I always put Strong Sell when posting. If there was an Extremely Strong Sell then that's what I'd use instead.
You have been warned.
Excuse me TC. You said 'Every prediction from what I can remember he has gotten wrong. down turn in Q1, or massive correction In q2'.and so on and so on. I think you'll find I made no prediction about q1 or q2. I did predict the top of the market in May which was spot on. I also predicted a correction of around 20% by the end of September. What's happened to the SIG share price? It's down by 24%. I also predicted a housing boom several months ago. Guess what, we've got a housing boom.
I call that a stellar predicting track record. Now do the decent thing. Offer up an abject apology for your slander and it will immediately be gracelessly accepted. What are you waiting for?
Get on with it man!!!
It's become apparent to me that there is a serious lack of knowledge of share trading/investing on this board. To try and help the more open minded readers here is another piece of excellent education.
SIG is at high risk of liquidation as it has a low Altman Z2-Score.
What is the Altman Z2-Score all about I hear you ask? It's made up of a set of criteria which are used to judge whether a company is at risk of financial difficulty within the next 2 years. SIG scores a lowly 0.78 which puts it firmly in the seriously at risk of liquidation in the next 2 years category. SIG's financial health is very poor. The Altman Z2-Score has an 80 to 90% degree of accuracy in predicting financial distress.
The following tests indicate the key risk factors that may influence the Altman Z2-Score:
Are liquid assets a significant proportion of the assets? Yes.
Do reinvested earnings make up a significant portion of the assets? No.
Are the assets relatively productive in terms of earnings? No.
Does firm value compare favourably to its liabilities? No.
3 no's and only 1 yes is not great. If you insist on investing in such a risky company then at least do so with your eyes wide open. Only invest what you can afford to lose as this share in my opinion is only for the most optimistic gamblers out there.
Cliostick, if you can't see that your comments are contradictory then there is no hope for you. Just because you've read an article in the Daily Star on psychology does not endow you with any level of expertise. I reckon I could teach you a thing or 2 about the subject.
See the error of your ways and apologise for your daft behaviour and we'll say no more about the matter.
I can't say fairer than that.
May I remind you Cliostock of your previous comment - 'I know about the motor trade and have made 102% on Vertu this year. I also know a bit about psychology'.
Like I say - pot, kettle, black.
I'm aware of the 2 Robs but my knowledge of cycles does not stem from them. They only talk about the property cycle. I know about 6 other cycles. They are complete novices when it comes to cycles as are you by the sound of things.
I've just got 2 things to say to you Cliostock. Do these words mean anything to you 'pot, kettle and black'?
Also stop being so hard on Culpepper. We've all got used to his boastful arrogance. He does very occasionally make a useful point so we all put up with him.
High is +21.8% which means a share price of 58p.
Median is +7.1% which means a share price of 51p.
Low is - 37% which means a share price of 30p.
I'd be inclined to think 30p is the most realistic price in 12 months time. Median is not good enough for me. I want at least 25% growth in my shares over 12 months or I'm not interested. I've recently dipped my toe back in the market and made nearly 25% on an estate agent in less than a month! My property cycle knowledge is proving very useful.
I'm concerned that many investors/gamblers on this board haven't got a clue what they're doing. The amount of hyperbole and confirmation bias is off the scale. In a small effort to help clue people up a bit I intend to give some of the fundamentals information that people should be looking at before buying a share. Today I will start with the price to tangible book ratio.
What's that I hear you ask? It's calculated as the current price divided by the latest annual tangible book value per share.This ratio It represents the hard assets of the company, i.e. the amount of money that shareholders would receive for each share owned if the company were to liquidate its operations.
Currently the ratio is a not great 3.73. To put that into perspective, SIG currently rank 74th out of 115 shares in the sector Housebuilding & Construction Supplies market.
I hope you all found that useful and luckily for you there will be more educational posts to follow in the near future.
Another excellent prediction. From the moment I posted, the share price went down and did not get higher than 48.98 by close of play today despite all of your best efforts.
A bad day today indeed.
Melseth, I thought we'd heard the last of you and you'd gone on holiday to Florida. I was going to post you'd be missed a tiny bit but didn't bother as I suspected you wouldn't be able to keep away.
You must be nursing quite a large paper loss if you've held onto 500,000 shares through thin and thin.
Take my advice. Cut your losses. Get the lot sold and invest in a good company. You'll sleep much easier in your bed.
Now is not the time to gamble any of your money on SIG. Give it another 18 months and we'll know by then if they've managed to turn it around. I don't think they will after reading the excellent post from exSIGemp.
I have every right to be on this board. Just because I've sold my holding doesn't mean my point of view is invalid.
Its a good job I post on here because if I didn't, many investors would lose a lot of money investing in SIG listening to the drivel from most of the posters who are clueless when it comes to investing/trading.
I've yet to see anything like a coherent argument as to why anyone should gamble their money on this long shot. Occasionally rank outsiders do go on to win but at least people should know SIG are a huge gamble and the odds of them coming good are very long indeed.
Thank you xSIGemp. Get ready to be labelled a bitter and disgruntled ex employee.
Many thanks for updating us on the current state of play. Your post is pure gold dust and should make people think. I get the feeling there are a lot of clueless investors on this board and they won't have it that there is anything negative about the company.
I mistakenly originally invested in SIG when I was a clueless newbie investor. I made the mistake of relying on my knowledge of the company from 20 years ago which was very daft. Those days are long gone and the fundamentals I've since looked at give me great cause for concern.
If you are interested in investing in shares do what I did and subscribe to Stockopedia. It's brilliant and worth every penny.
I did sell all my shares in May. Luckily for me my broker only sold 32 out of the 33. Even luckier for me it was my biggest holding SIG which he didn't sell. Maybe my order was too big to place. I didn't bother to find out the reason. The day after I sold the 32 shares SIG started going up for some inexplicable reason. I decided to tag along for the ride with my stop loss in place for the inevitable correction. Purely by luck I made a very nice profit out of my broker's mistake. The stop loss kicked in in June.
The rest is history as they say.
I sold up in early May in line with my excellent prediction that the stock market would peak and then fall by 20 to 30% by the end of September.
I am a student of past performance of the stock market and the economy going back 221 years. I sold all my 33 shares ready to buy back in in October time when prices will start going up again to leave us roughly where we started the year.
There will also be a major correction next year which I'll give plenty of warning about. After that anyone invested in shares is going to at least double their money over the next 4 years. I of course plan to do much better than that.