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SIP, SIGMA PHARMACEUTICAL LIMITED
nipper
post Posted: Sep 5 2019, 04:54 PM
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QUOTE
Sigma Healthcare said its first-half profit plummeted 81.2 per cent to $2.5 million thanks to slimmer trading profits and one-off costs including $17.3 million on its "Project Pivot" restructuring program. The company, which operates under the Amcal, Chemist King, Discount Drug Stores, Guardian and PharmaSave banners, also brought to book the pain of losing its exclusive distribution deal with Chemist Warehouse.

The supply arrangement between Sigma and My Chemist/Chemist Warehouse – which Sigma chief executive Mark Hooper said no longer made commercial sense – formally ceased on June 30. The exit from the deal has taken longer than expected, and the cost savings from cutting the Sigma staff who serviced the contract were likely to be delayed.

Revenue for the half year ended July 31 fell 4.1 per cent to $1.8 billion. Earnings before interest, tax, depreciation and amortisation dropped 19.8 per cent to $25.3 million. Sigma's bottom line earnings were also hit by $5.8 million of one-off costs for litigation and due diligence.
The company cut its interim dividend by a third to 1¢ per share, payable on October 4.

Sigma has downgraded its financial year 2020 underlying earnings guidance to the lower end of the previous range of $55 million-$60 million.

Its shares had dropped 4 per cent to 58¢ just after midday on Thursday, and are down more than 40 per cent from this time last year.

- up against some hard players




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Mar 13 2019, 05:41 PM
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Sigma Healthcare boss Mark Hooper says rival Australian Pharmaceutical Industries will have to "significantly" boost its offer to gain any traction after the company knocked back its $730 million cash and scrip takeover proposal.

Investors were not impressed with the news, wiping almost $82 million off Sigma's market capitalisation. The takeover target's shares tumbled as much as 18 per cent on Wednesday before closing 12.3 per cent lower, or 7.5¢, at 53.5¢ each. API shares fell 5¢, or 3.57 per cent, to $1.35 each.

API, which owns the Priceline pharmacy chain, forced Sigma to go public about the talks after stumping up about $55 million to buy an 8 per cent stake from fund manager Allan Gray in December. API, now Sigma's largest shareholder controlling almost 13 per cent of the company, said it was now reviewing its holding.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Dec 14 2018, 09:40 AM
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In Reply To: nipper's post @ Dec 14 2018, 08:50 AM

API has made a bid for rival pharmacy business Sigma Healthcare, valuing the target at $727 million.

It comes after API, which counts Washington H Soul Pattinson as its major shareholder, acquired a 12.95 per cent interest in Sigma at 64c per share and announced it had made a proposal to Sigma’s board on October 11.

API is offering Sigma shareholders 0.31 API shares and 23c cash for each Sigma share and was valued at 68.6c per share yesterday.

The offer is to acquire Sigma via a scheme of arrangement and represents a 69.3 per cent premium to Sigma’s share price at the close of trade yesterday.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Dec 14 2018, 08:50 AM
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Australian Pharmaceutical Industries API has stormed on to the share register of ASX-listed Sigma.

The listed company picked up an 8 per cent stake at 64¢ a share on Thursday night, to take its holding to just under 13 per cent.

Sigma shares went into a trading halt on Friday morning, ahead of a likely takeover bid.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
alonso
post Posted: Jul 5 2018, 10:33 AM
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In Reply To: alonso's post @ Jul 4 2018, 10:15 AM

After seeing the Allen Gray notice I decided to rob the piggy bank and have a small splurge.



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"The optimist proclaims that we live in the best of all possible worlds. The pessimist fears this is true"

"What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom." Adam Smith
 
alonso
post Posted: Jul 4 2018, 10:15 AM
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In Reply To: nipper's post @ Jul 2 2018, 10:03 PM

Can't help but think it's oversold though, but I've got no money to buy some anyway.



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"The optimist proclaims that we live in the best of all possible worlds. The pessimist fears this is true"

"What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom." Adam Smith
 


nipper
post Posted: Jul 2 2018, 10:03 PM
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Mr Hooper said there would be a comprehensive reshaping of the business now, with major cost-cutting afoot.

The contract loss meant that more than $300 million in cash would be freed up at the end of the contract in mid-2019.

He labelled the loss of the contract as "an important pivot point for Sigma".

Sigma cut its guidance for 2018-19 to an underlying earnings before interest and tax of around $75 million. "Trading conditions in May and June have been particularly weak," he said.

For 2019-2020, Sigma now expects underlying EBIT of between $40 million and $50 million.

Sigma is one of the largest full-line pharmaceutical wholesalers in Australia. It also operates Australia's largest pharmacy-led network, across the Amcal, Chemist King, Discount Drug Stores, Guardian, and PharmaSave brands.

Through its Sigma Hospital Services business, it has been expanding in the hospital pharmacy distribution market, as well as the provision of third-party logistics services through its subsidiary Central Healthcare.

Mr Hooper said Sigma would be eyeing acquisitions to fill the earnings hole.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
nipper
post Posted: Jul 2 2018, 05:51 PM
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chief executive Mark Hooper said on Monday he did not participate in the tender for the supply of goods to Chemist Warehouse because it would have tied up $300 million in capital and yet his earnings before interest and tax would have halved given the conditions imposed by Chemist Warehouse.

Hooper told Chanticleer that Chemist Warehouse was "good at extracting value".

Sigma's contract with Chemist Warehouse will expire in June 2019. Hooper says this provides a pivot point in the history of Sigma and gives the company an opportunity to cut costs and possibly become involved in takeover activity......
glad I didn't "bottom drawer" this one.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
nipper
post Posted: May 24 2017, 07:22 PM
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More woes... Hard to hang on to a privileged position when the buyer gets big...

"Sigma Healthcare is planning legal action against the My Chemist/Chemist Warehouse Group over an alleged breach of a supply agreement, sparking a dive in its share price.

Sigma (SIG) said its proposed action relates to the My Chemist/ Chemist Warehouse Group’s intention to obtain certain products from another wholesaler, which Sigma maintains it is not entitled to do under their existing agreement. If the My Chemist/ Chemist Warehouse Group buys products from a different wholesaler, Sigma’s earnings would take an estimated annual hit of between $5 million and $10 million.

Sigma said the commencement of legal action, combined with a subdued start to its 2017/18 fiscal year, may mean its annual underlying earnings before interest and tax will fall by five per cent from 2016/17.

The company said it decided to commence legal proceedings after the My Chemist/ Chemist Warehouse Group rejected offers of mediation and binding arbitration...."



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 8 2016, 10:39 AM
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In Reply To: early birds's post @ Sep 8 2016, 10:30 AM

been in and out, several times. Currently not holding (some mates doubled up at 80c a year or so ago)



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
 


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