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.
Ann: Trading Update, page-44
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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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| Last trade - 16.10pm 08/11/2024 (20 minute delay) ? |
| SIG (ASX) Chart |
