SIG 4.53% $2.54 sigma healthcare limited

Ann: Trading Update, page-44

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  1. 3,534 Posts.
    lightbulb Created with Sketch. 64
    Have a closer look at the number disclosed in yesterday's announcement, Sigma lost the CW contract and around 30m EBIT for FY2020, the $300M released cash coming out of that contract will be redeployed into other revenue earning asset or business, however on today's high asset valuation environment, it's hard to generate 10% EBIT (30m from 300m capital).

    Personally I believe the best approach is not rushing into new business, but should go for a massive share buy-back.

    $300 Millions doesn't cover the short-fall the CW left over, but it can reduce the outstanding shares by HALF.
 
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Last
$2.54
Change
0.110(4.53%)
Mkt cap ! $2.300B
Open High Low Value Volume
$2.47 $2.62 $2.47 $67.92M 26.64M

Buyers (Bids)

No. Vol. Price($)
10 333746 $2.54
 

Sellers (Offers)

Price($) Vol. No.
$2.55 3162 1
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