Sig Share Discussion Threads

[cleott] 24/6/2008 15:54

Thanks

A bit over my head, but these acquisitions may deliver and believe me (as an Architect) insulation sells. Are they not diversified enough ie commercial and europe etc to see this down turn out or be taken out at this price.

My bottom would be £5.00 when I will buy again.

I have sold many a share at this sort of price and 1 year down the line they are taken over at a significant premium.

Thanks again

[m.t.glass] 24/6/2008 11:05

Mind you, so did a whole host of unrelated ones too!

[m.t.glass] 24/6/2008 11:03

It isn't alone cleott - I have downbets on several stocks involved in supplying or serving the construction industry (eg Marshalls (MSLH), Travis Perkins (TPK) all of which moved the same way this morning.

[cleott] 24/6/2008 10:13

Hi

Does anybody know why this share is taking such a hit! at the moment

[pugugly] 12/6/2008 09:39

KingL:> Very good points. The wheel seems to have come round again.

From my note:>
"File opened 20 Jan 2002 re Questor Telegraph.
Revisited 8/12/02 at new low for year at 160/165. being shorted – Fidelity selling – bb view no resistance to 90p highly geared – watch for say 120p..
As it is stated above in posting 23 the city has been spooked by the gearing at 74%.
lets ignore goodwill shall we, but lets ignore it from the balance sheet as well. In this case the gearing becomes a frightening 134%.

Revist 18/12/07 at 714 after 1400 - Really missed if bought at 160 BUT however rewatch see also Kingspan in insulation. "


If they have overdexpanded in a contacting market and management are losing control there could (imo & dyor) be some very significant bad debts building up. (To coin a pun) Many builders appear to be heading for Carey Street. Just look at the statements from the UK majors - The new build market seems to be in hibernation.

anyone any idea of SIG's current business split?

[kingl] 10/6/2008 13:19

Some things are really starting to worry me about this company now, so in light of the fact that the shares are still being tipped by most brokers, I thought I'd better set out my worries.

First up, a conversation with somebody that works for the insulation business. He expressed serious concerns that the group has just made too many acquisitions and there seems to be no strategy involved to accommodate them like there used to be. Furthermore, because of the volume of acquisitions, the group seems to have taken its eye off the original insulation business, which is now losing market share to Minster and others. His words, "the family spirit has gone."

Under the previous management this company used to be an Insulation and related building products company, where growth was mainly organic with the addition of a handful of related acquisitions. The share price was mixed, but generally represented the market conditions they operated in.

Under the current management the company has become a conglomerate, with the addition of a company, related or otherwise, at least every fortnight. Profits and eps have grown significantly, but at the expense of a previously strong balance sheet now containing so much goodwill and intangibles that if you strip them out it paints a picture of every increasing negative net assets.

The latest strategy has been tried by so many companies I've lost count. It only appears to work in the short term, rarely or never in the long term. It only seems to work if you have an increasing share price, and a high pe, which enables you to buy almost anything and increase the eps immediately. It's a buy now pay later strategy, which will always run its course eventually.

It could be just coincidence that the relatively young CE announced his retirement 5 months ago, but perhaps he too could see that this strategy had run it course. Add to that a share price that is now falling, a pe that is back towards normal levels, a potential recession, and banks that are only prepared to lend money if it is backed by real assets rather than promised future profits.

All I see now is a strategy that has run its course, and a balance sheet with all sorts of potential write-offs. Under the old management, the strength of the balance sheet would have taken them through a recession no problem, but I'm not too sure now.

[dubwise] 05/6/2008 14:15

good support at around 700 but when that breaks the journey south will resume I feel

[daihardtoo] 02/6/2008 10:30

Robsy
I used to work for a company that was bought a few years ago by SIG.
My feeling was that the integration team that arrived on the day of the acquisition was very efficient, but very quickly moved on to their next assignment (ie. after about 5 days) - the real integration work (ie. changing computer systems etc.) only started a few months later. That work was co-ordinated by management within the division that the new business joined.

Talking with a few of the 'seasoned professionals' in their integration team, it seemed that their expertise was being spread ever more thinly with each new acquisition.

[olivepeel] 31/5/2008 18:30

chart suggests 1000 by sept

[sebmasch] 31/5/2008 15:37

I'll be looking for entry off this double bottom on Monday. Looking good from all viewpoints leading into the next few weeks/months.

[robsy2] 31/5/2008 10:28

I'm watching from the sidelines.Looks like its turning upwards.They are expanding rapidly but how they consolidate all these acquisitions they make? They must have a team dedicated to buying businesses all over Europe. I hope they keep a close eye on the due diligence and the intergration of all these small businesses they buy.

[qs9] 30/5/2008 15:00

TImes today talked of Panmure GOrdon stressing that SHI were better value than others out there and that potentially a target for those targetting Gibbs & dandy.....looks like recent falls are now threfore being reversed IMO...

[robsy2] 30/5/2008 12:38

this looks like its turning the corner

[jamesgkenny] 06/5/2008 16:39

as the cost of all fuel continues to rise and the value of oil and gas exploration and servicing companies rocket, the correlated value of the likes of SIG KGP and EAGA are not yet appreciated it seems.....

[robsy2] 15/4/2008 11:53

Experienced watchers, Whats wrong with the share price here? . I saw the CEO interviewd on Blooomberg and it all looked fine and dandy , then the share price flew away so I'm surprised it has fallen back.

[slogsweep] 07/4/2008 07:55

Sig on acquistion trail again - bought Clyde in Scotland on Friday any idea of price?

[2shemshersingh] 27/3/2008 02:40

the charts has started to look interesting and a move towards the 900p level if it breaks the key resistance of 885p.

[elmbury] 26/3/2008 10:34

Simply looks like a re-rating to me. The stock should be moving towards 1000 with only positive news and broker views.

[dobcroft] 26/3/2008 09:49

Mmmmmm. Rumours of summat?

Up 5%+ in this sea of red.

[qs9] 14/3/2008 20:51

institutions like it, shown good strength despite markets...

[fabou33] 13/3/2008 19:40

SIG's (SHI.LN) full-year results are upbeat, says NCB Stockbrokers. Says earnings and proposed dividend are slightly higher than expected, but that there are no real surprises after January's detailed trading update. Notes the positive outlook statement predicting a strong '08 is key after a successful '07. Retains buy rating and 1100p target price

[fabou33] 13/3/2008 19:38

Landsbanki initiates SIG (SHI.LN) at buy, with a target price of 950p. Says the group's FY07 results are ahead of expectations. Notes the Insulation business is now "in the sweet spot of new building regulations, which require much higher thermal insulation for new properties and major refurbishment in all building categories." Highlights the new schemes coming into force in April '08, to promote better insulation performance in existing homes in the UK. "SIG are investing in distribution capacity to deal with the anticipated increase in demand."

SIG's (SHI.LN) FY07 is strong, with profits and dividends up circa 30%, says Panmure Gordon. Says the group reports good growth across products and regions, highlighting the strength and depth of the SIG offering. "Opportunities remain upbeat for both organic and acquisitive growth across product and region." Therefore maintains buy rating and target price at 940p.

Numis Securities slashes SIG (SHI.LN) target price to 926p from 1300p. Says the stock warrants a P/E of around 12x, in line with the market average. "This reflects low cyclicality in SIG's businesses, and ability to bolster underlying earnings growth with free cash reinvestment in bolt-on activities." Says the group's FY '07 results are in line with expectations, notes "SIG's product exposure will ensure it is well protected from credit crunch issues." Keeps buy

[nirvs] 13/3/2008 09:43

In Bear markets, all news is bad news. I was surprised by todays results