SIGn the other side.23 Jul 2021 13:35
As an ex-SIG employee I have been following the posts here for quite some time. I do not own any shares of SIG.
I’ve red Madmick62’s messages and comments with great interest. Although I have little stock market knowledge, I believe Madmick’s mistrust is justified. SIG is a wholesaler of building materials in the UK, but also in Europe. They are big and strong. In recent years they have been severely weakened by cash cuts and restructuring. They are certainly not the strong partner of 10 years ago. Their policy is aimed at optimizing the figures with regard to shareholders, but in practice this means that they are unable to meet their customers sufficiently. Stock are so small that they can often only partially deliver orders. As a result, customers switch to the competition.
In the past, SIG was a preferred partner of the manufacturers. Those days are gone. This also weakens them.
In the past, SIG acquired companies with strong identities that kept them strong and allowed them to sell at higher margins. Unfortunately in Europe they have restructured everything to the British model. In Europe, customers do not eat an English breakfast, just like people in England will not eat baguettes or Camenbert.
However, the market perspective is good, but there are more and stronger providers than SIG. Therefore, it is doubtful that can benefit from the growing market. They no longer have the means, knowledge and position of the past. I definitely wouldn’t gamble on this company at this point. The stock market is one side of the story, the reality on the market is the other.