Sigmaroc Share Discussion Threads

[tonytyke2] 07/11/2022 16:05

Sphere25, Your recent updates were interesting particularly from a trading perspective. IMO I agree that a run at 60p is possible. Strong RSI, with MACD looking good also.The latest company update was very good/resilient, but imo the key positive share price difference over the past few weeks or so, is possibly a large buyer in the background. So keeping a close eye on company newsflow and wider economy impacts.Good luck and keep updating your opinions/views here!

[wanttowin] 07/11/2022 15:46

Shame to hear you are going Sphere I have always valued your posts..

[sphere25] 07/11/2022 14:50

Next leg up with the price at 52p?

Not going to keep posting here, but the buyers in size continue to come in here. You had some nice mopping up on Friday and today there are some decent blocks including a 1.37m and a 482k picked up at 49.85p.

Worth watching for activity like this. The short term trend is being driven by this notable buying. It looks like a possible move toward 60p, but no idea where it might top out.

Actually, this will be the last post here.

Fundamental folk....all yours from now :-)

All imo
DYOR

[sphere25] 04/11/2022 09:05

There has been a few million in sizable blocks sold into the market recently at mid 47's and the price hasn't batted an eye lid, which tallies with that post above i.e. more resiliency in the near term.

There have also been buyers in size at 47p on the book protecting the downside versus sellers in size at 48p very recently (and 49p prior to that), though the price might have got through there now with someone happy to pick up 461k at 48.5p.

Have to see if these big blocks can continue to be absorbed (sellers are clearly relentless in this market), but essentially from a short term trading view, it is 47p vs 49p on either side now. It either breaks higher for an opportunity to sell into or falls back into what could be a bottoming range, as the market then sees how wider markets perform, as well as trading updates here.

Happy to keep trading outside of the updates, particularly after a trading update. Applies to most now, better to be sure if there is doubt. Even with the valuation resets, we can still get clobbered a quick 10% plus in no time in this market.

All imo
DYOR

[greg the grinch] 28/10/2022 13:15

I bought more. Sittin and waitin... should x2 to x3 as a medium term hold.

Can't see much downside. Have not caught the exact low but that was a great update so I reckon there will be a lot of buyers coming in...maybe more importantly, the sellers might dry up.


Gla

[sphere25] 27/10/2022 13:04

So it has cleared the key 45p and 45.5p marks and now popping higher. There is some nice chunks being bought at 46p earlier and 47p just past lunchtime to clear sellers in size, though (judging from the order book) at present it looks like possibly just the single big seller vs the market at these price points.

There has been a small shift in bullish sentiment out there. The move in gilt yields here, the dollar move, the perhaps less catastrophic political situation here and what appears to be a softening of hawkish sentiment from the Fed in the US have all contributed.

Whether the latter in particular holds true remains to be seen. Ultimately, the above has caused some nice bounces out there and resulted in stronger buying in SRC too. You can see the softening in bearish stance from a short term viewpoint from the way the price is more stable without sellers smashing the bid down, the bigger buying clearing fewer sellers allowing a move higher as well as a break of the 50 day moving average.

Furthermore, if you draw a trendline of that downtrend, the price has actually currently broken out of the downtrend. That might signal further upside though I'm not getting carried away on the bullish front. It is all a short term perspective here with stops in place.

Management have gone to bigger lengths to point out the resiliency of markets here in the last update so they are trying to signal that the financials will hold up (or at least better than elsewhere) in trying to fight macro headwinds, because it truly is a dog fight right now.

Now if the market believes the earnings resiliency, the trend higher will continue or it will at least form a base. It is hard to make that call in such complicated markets right now.

Noted the stronger demand yesterday and jumped on board for a trade. Hopefully this keeps moving higher for a nice short term play. Beyond that anything with a big chunk of debt has to perform or it will be difficult. Interesting to see how the interest rate rises eventually kick in, but this next 3-9 month patch is really going to test the resiliency of companies out there.

It could be longer too but surely the companies that perform will eventually outperform and be re-rated higher. They certainly deserve it if you come through all the headwinds that have happened, one after the next after the next.

All imo
DYOR

[greg the grinch] 27/10/2022 12:25

I have nibbled a few.

Way oversold.

[arregius] 27/10/2022 09:03

Slowly coming back

[tonytyke2] 26/10/2022 10:55

elbrus55, Agreed they do seem to be generating the cash and dealing well with inflationary elements.IMO it was a cracking update and I added. Some of the technicals now looking much better e.g. MACD and RSI. Perhaps we could have started a significant share price re-rating here, following the savage sell off. The current economic conditions ain't good but hopefully inflationary pressures start easing next year, fingers crossed! Good luck all with your investments here.

[sphere25] 26/10/2022 10:45

Nothing major here yet but the exchanges are gradually picking up with what appears to be decent sized buyers appearing on the bid at 44p (with an iceberg of 5210) and now another at 44.8p.

It is hard to tell how big these buy orders are, but they are slightly out of the ordinary for SRC, so watching in to see if the bulls can give the big sellers at 45p and 45.5p (they are sat bang on the 50 day moving average) at least a short term contest for a possible pop higher toward that 50p mark.

All imo
DYOR

[se81] 26/10/2022 10:38

any director purchases outside of placings for acquisitions which m'ment will be expected to participate in, should be taken as a positive. I'd have thought the ones last week were off the back of N91 exiting which I'd expect decent m'ment (especially those pursuing a buy and build strategy) to be acutely aware of

[clocktower] 26/10/2022 10:14

Strength of the GBP maybe helping today.

[clocktower] 26/10/2022 07:58

elbrus55, you hit the nail on the head when you mentioned the 10 main shareholders, as while the purchases are not directed at retail investors, the purchases may well be designed to portray an air of supreme confidence to the main holders, that they no doubt talk to on a regular basis.

Collective moves like that are clearly orchestrated for a purpose as you have to admit that it is not just by chance that they all act in formation or because it is the only time that they are not in a closed period.

Some posters clearly misunderstood my drift when I raised the reasons that collective buying may have been organised at a time of uncertainty in world interest rates and political turmoil caused by a large extent that to many people having cosied up to the Russian oligarchs for far to long, and relying on cheap Chinese imports that have undermined our independence and now our standard of living (bar those of us that are fortunate enough to have substantial means). We have been living in cloud cuckoo land for far too long.

[greg the grinch] 25/10/2022 14:01

Does anyone else have constant SRC advfn ads?

[elbrus55] 25/10/2022 13:31

If you strip out the recent acquistions, they've been generating quite a bit of cash recently (£3m per month?) and their Santander-led debt facility runs to July 2026 So while I agree there are risks here, it doesn't look too stressed. Maybe they'll drop the dividend in these conditions to help pay down debt quicker, although it was relatively small. Unusual comment about the Director share purchases! How are retail shareholders going to move the share price when they hold a tiny proportion of shares (1%?) - it is incredible. About two thirds of the shares here are held by just 10 shareholders (whose actions can really influence the share price) and the directors' purchases may give them a bit more confidence in the messages the directors are giving them in their regular calls and meetings - but in the end they'll mostly look at the business results The directors have very little interest in talking up the share price a bit for a short period. What would they get out of this - a warm feeling inside? The success of their trades can be judged by the performance of the business and share price progression over the next year or so .

[twirl] 25/10/2022 08:24

I doubt it matters much what retail investors do or say on here. Its the major holders that hold the cards to play as they choose.

Quite amusing though to see posters imagining that their opinions make a difference.

[clocktower] 24/10/2022 20:13

Often directors but to try to stem any serious fall in the sp, as it tends to give retail investors confidence, often misplaced I regret to say from experience.

The thing to concentrate here is the level of debt and the current world risk of a huge slowdown in major projects and of course the housing situation.

Even their buying has failed to stop the slide and that should raise red flags imo.

I have set a much lower target before I will run the risk of watching it slide while I am left hold the can empty or take substantial life losses, and in this market with inflation is a double wack.

Good luck though but those that are smooth talkers can often talk but not deliver.

[arregius] 24/10/2022 12:43

More insider buys. Now from nordkalk

[cerrito] 22/10/2022 21:24

I mean the UK

[twirl] 21/10/2022 20:55

Thanks for your post Cerrito. Could you expand on your comment "increased country risk today in the country with 25% of sales" pl

[cerrito] 21/10/2022 20:18

I was at last night's soiree with senior management. My first contact with them and was v impressed especially by Max. Excellent initiative but have to ask myself if it was a good use of their time as not recorded and while I did not count did not seem to have been 25 retail investors there.
Great to see the directors' buying-they made the point that not all that many days they can trade-but no surprise that given increased country risk today in the country with 25% of sales the share price today was weak.

[tole] 21/10/2022 17:48

https://masterinvestor.co.uk/equities/small-cap-round-up-bricks-time-rocks-and-a-peach/SigmaRoc (LON:SRC) – strong momentum together with acquisition opportunitiesYesterdays Q3 Trading Update by this quarried materials group declared a 19% uplift in revenues at £394m, while its underlying EBITDA at £77m was up 5%.Max Vermorken, CEO of SigmaRoc, commented:"Every quarter this year has been challenging and Q3 was no different. However, the Group's unique structure, decentralised operating model and diversified end markets have allowed it to be agile in the face of these challenges. As a result, we remain on track to deliver our expectations for this year and retain solid and broadly based order books across the Group."Analyst Charlie Campbell at Liberum Capital has a price objective of 130p on the group's shares, which he rates as a Buy.For the current year his estimates are for sales of £516m (£272m), profits of £58.5m (£26.8m) and earnings of 6.6p (5.0p) per share.I rate this £292m capitalised group as an ideal example of 'an acquisition vehicle'.A key element of its growth strategy is ongoing performance enhancement – it has shown an average EBITDA boost of 19% on its businesses since acquisition.The shares closed last night at just 44.35p – a level that shows significant upside.

[masurenguy] 21/10/2022 16:04

Executive share purchases over the past 2 days

Max Vermorken, CEO: 59,448 at an average price of 44.7888p per share. Mr Vermorken's total interest in the Company is 759,231 shares, representing 0.12% of the total voting rights of the Company.

Garth Palmer, CFO: 60,000 at an average price of 44.4786p per share. Mr Palmer's total interest in the Company is 616,146 shares, representing 0.10% of the total voting rights of the Company.

Charles Trigg, CTD: 45,300 at 44.15p per share. Mr Trigg's total interest in the Company is 341,842 shares, representing 0.05% of the total voting rights of the Company.

Dean Masefield, Deputy CFO: 33,120 shares at 45.2499p per share. Mr Masefield's total interest in the Company is 78,868 shares, representing 0.01% of the total voting rights of the Company.

Paul Gustavsson, CEO Nordkalk: 48,000 shares at an average price of 45.2848p per share. Mr Gustavsson's total interest in the Company is 73,000 shares, representing 0.011% of the total voting rights of the Company.

Chairman David Barrett purchased 44,250 shares at 44.75p.

Aggregate total of executive share purchases was 290,118 shares at a cost of £129,833.

Max Vermorken and Garth Palmer discuss Q3 trading update.

[alter ego] 21/10/2022 14:28

Lots of management buying over the last couple of days and in reasonably good size too. Latest by CEO of Norwalk just RNS'd.