Sigma Capital Share Discussion Threads

[red ninja] 19/9/2020 15:55

Bit of a surge (up 4p) on Friday ending with 2 50k buys after weeks of drifting.

[red ninja] 11/8/2020 09:33

Share price creeping up, but no trades that I can see.

I guess the MMs are more positive about housing.

[brewsky] 03/6/2020 13:42

SIGMA TO LAUNCH LONDON FUND

"Duncan Sutherland, Regeneration Director at Sigma Capital Group plc explained they're in the process of setting up a fund in London - for homes within zones four and outwards"

Www.btrnews.co.uk/2020/05/06/build-to-rent-and-the-london-market-insights-from-industry-leaders/

This should give Sigma access to significant additional funding to manage and consequently generate additional fee income for the company.

Surprising this is being discussed on a build to rent webinar as price sensitive information should be handled on a confidential, need to know basis until it has been released to a regulatory information service. This information has yet to be formally released. It brings into question the recent director (Ian Sutcliffe & Mike McGill) share purchases given they held undisclosed price sensitive information at the time - potential insider trading....

[sphere25] 07/5/2020 16:18

Another director buy:

"Sigma, the private rented sector, residential development and urban regeneration specialist, announces that it was today notified that Ian Sutcliffe, Non-executive Chairman of the Company, has purchased a total of 240,000 ordinary shares of 1 pence each ("Ordinary Shares") in the Company at an average price of 90.5 pence per Ordinary Share.

Following this purchase and yesterday's purchase announcement of 760,000 Ordinary Shares, Ian Sutcliffe now has a total beneficial holding of 1,000,000 Ordinary Shares in the Company, representing 1.12% of the total issued share capital."

Dawdled too long here. Stock has broken out and headed higher.

[sphere25] 06/5/2020 14:22

That's a decent chunk to buy. Indicate some value here?

Sigma, the private rented sector ("PRS"), residential development and urban regeneration specialist, announces that it was today notified, that on 5 May 2020, Ian Sutcliffe, Non-executive Chairman of the Company, purchased 760,000 ordinary shares of 1 pence each ("Ordinary Shares") in the Company at an average price of 86.2 pence per Ordinary Share. Following this transaction, Ian Sutcliffe has a total beneficial holding of 760,000 Ordinary Shares in the Company, representing 0.85% of the total issued share capital.

[asagi] 15/1/2020 13:18

that sounds spot on to me Investorschampion. I'm still long here. Of course the risk is that it is not re-hired as investment manager to the REIT but I think that is less likely than the bears think.

Asagi (long SGM)

[alexwandy] 21/11/2019 13:59

2.3 million shares traded in Sigma yesterday at 92p. Concerning as this significant fall appears to be mirroring the poor performance of the PRS REIT, although not surprising given they are Sigma's main client. Again like the REIT it appears an institutional shareholder is not happy. Launching the PRS REIT was a significant milestone for the business. However, reading the PRS REIT thread chat a number of investors are clearly not happy the second raise took place which appears to be negatively impacting the financial performance of the PRS REIT. Sigma's chief executive was rewarded very handsomely for the second raise earning over £1m last year but the second raise now looks like a short term profit grab with no consideration to the long term revenue that the PRS REIT could have provided to Sigma had the second raise been undertaken at a more appropriate time. Having bagged the golden goose, it is now unlikely the PRS REIT will raise more equity owing to poor financial performance to date and Sigma is now in real danger of losing the investment advisory contract when it comes up for renewal if the PRS REIT continues on this trajectory. One cannot help but think this opportunity to Sigma has been mismanaged and perhaps it is time to replace Sigma's chief exec in the hope the situation can be salvaged

[robertop5] 15/11/2019 12:25

Forget about a Labour government. Sigma seem to be undermining their major revenue source,the PRS REIT, all by themselves. PRS REIT share price down to 83p. Invesco, one of the major investors in the PRS REIT, recently sold a significant amount at 84p - a clear indicator they are not happy and that a further equity raise is therefore now unlikely to happen. As Sigma derives the majority of its fee income from the PRS REIT, this has significant implications on the longer term profitability of the business. The poor performance of the PRS REIT is also casting a shadow on Sigma's overall reputation given it both launched and is investment adviser to the PRS REIT. One can now conclude the immediate departure of Sigma's COO earlier this year must have been related to this and that there is more to the PRS REIT's declining performance than "Brexit related planning delays". Time for Sigma's chief exec to start justifying his exorbitant salary - one of the reasons I recently exited my position in Sigma. (Short Sigma)

[red ninja] 04/11/2019 22:35

Presumably a Labour win would damage SGM with it's right to buy policy undermining the REIT fund.

[red ninja] 17/10/2019 12:15

Lombard Odier nudge up holding :-

hxxps://www.ii.co.uk/news/holdings-in-company-rnsLSE20191017110403_14270025

Also PRS Reit quarterly update shows properties for rent increasing steadily.

[olliemagern] 30/9/2019 17:50

The number of house completions for PRSR is set to rise significantly over the new financial year.
Coutryside who are building 5000 houses for Sigma/PRSR have completed their off site timber frame construction factory. The build time from foundation to completion is set fall from 13 days to 10 days.
It has been a slow start, but now the acceleration starts, next year Countryside say they will significantly increase the number of houses being built for Sigma Capital.

[7dt] 27/9/2019 17:27

In the interests of transparency are Investors Champion paid by Sigma Capital to produce these reports? and/or do you have any business relationship with Sigma?

[bonzi1] 20/9/2019 16:24

Dubious. If the COO was retiring why not simply say so in the announcement and give a sensible and transitional notice period which he surely was contracted to. Instead investors have been left to second guess particularly given the COO left "with immediate effect". Throw in the PRS REIT share price currently down to 86p with multiple sells in blocks of 100,000 - 250,000 over the last few weeks, with the trend continuing post the Sigma trading update which focused heavily on the PRS REIT. That is clearly institutional money which is concerning given most will have participated in the launch and second equity raise at £1.00 & £1.025 respectively so worrying that some chunky current paper losses are being crystallised, with funds reinvested elsewhere. Given Sigma currently derives the majority of its revenue from the PRS REIT, the current performance of the PRS REIT must surely be a concern to BOTH prs reit AND Sigma shareholders. Equally as investment advisor to the PRS REIT, the performance of the PRS REIT will undoubtedly impact Sigma's ability to generate other business in a similar role and hence increase assets under management. There is always the risk were the REIT's performance to deteriorate further, that Sigma's role as IA may be retendered after the initial 5 years. Half of Sigma's development management fees derived from the PRS REIT are tied up in PRS REIT stock which is falling. Perhaps I am being too pessimistic and the PRS REIT's performance will improve and/or Sigma will broaden its revenue generation through new opportunities over and above the PRS REIT but one can only value what is observable not what may or may not transpire in the future and on that basis I would agree with other investors below that Sigma remains overvalued

[olliemagern] 20/9/2019 01:54

COO Hogg soon 55 a good age to semi-retire, he was a founder member when selling his Inpartnership to Sigma. His leaving will increase Sigma's earnings around 9% next year when others absorb his duties.
In hindsight his salary was too high as a percentage of Sigma's profits.

[celeritas] 18/9/2019 11:24

A general election with the Labour party somehow winning is the biggest problem for sgm.

[asagi] 16/9/2019 18:50

a good summary, JBrown1952. The departure of the COO at no notice with no explanation deterred me from buying more.

Asagi (long SGM)

[jbrown1952] 14/9/2019 00:24

Chief operating officer leaves Sigma Capital with immediate effect. No explanation given. A significant figure within the company with total remuneration of £886K (including realised carried interests) in 2018 according to the latest annual report, second only to the chief exec who received £1,098,000. Both figures excessive given the size and profitability of the company. To give context as to the importance of the COO, the next highest paid director received £315K in 2018. The immediacy of the departure and absence of any explanation is cause for concern. No sign of a further equity raise within the PRS REIT to which Sigma is investment adviser. Chief exec's statement to Property Week in Oct 2018 of a further £250m due to be raised in Jan 2019 now looks at best misguided. The last fundraise of £250m in Feb 2018 at £1.025 makes it now challenging to raise again given the current PRS REIT share price of 88p. Without a further raise and the associated fee generation for Sigma, notwithstanding the ongoing downward pressure on the share price, the company remains overvalued. No progress announced as yet with the £30m Scottish debt facility signed in April this year. A curious time to enter the Scottish market with rent caps having been introduced by the SNP. When combined with the £45m HCA debt facility, £75m of available debt raises concerns over the potential to leverage the business at what many view as the latter stages of the current cycle. The unexplained nature of the COO's immediate departure when considered with the above leave one feeling unnerved. Awaiting further trading updates from Sigma and the PRS REIT with interest.