Prospects10 May 2020 11:48
Hi Folks! First post although have been in SIG for a few weeks now averaging out at around 21p per share!
I am in construction and purchase materials though SIG and get a "feel" from speaking to staff there that trading is expected to be brisk over the next few weeks as building sites return to work.
However over trade counter for personal callers trading is severely restricted as are deliveries to site, but demand is certainly there.
There also seems to be uncertainty as to how available stocks of the essential staple SIG materials (plaster, plasterboard, metal and ceiling tiles etc) will be in the short term from the main manufacturers such as British Gypsum and Armstrong but these factors should only be temporary and will recover in the months to come so the trading outlook should not be too averse.
What is of concern however is how much is owed by account customers and what will be the prospects of recovering such amounts in the near future?
All in all I would expect the shares in the short term to trade in the range of 25-40p but I honestly feel that in a matter of weeks there will be a full bid from IKO Group as SIG looks remarkably cheap at the moment.
Obviously all imho but anything under 30p a share HAS to be more than an interesting opportunity!
Good luck all!!