fighting to fill the gap, $0.80, page-12

Nice dividend coming and I still think at the current price there will be potential for further upside in the share price which is coming off lows. The share price was hammered repeatedly over the Chemist Warehouse saga to below any reasonable valuation. It was like a boxer being punched after being already down for the count.

As a very macroeconomic assessment of value, Over many years, I have always looked at the comparative market capitalisation of Sigma and API as a reasonable guide as they are very similar sized operations in exactly the same market. A couple of years back API's market capitalisation was about 30% less than Sigma and it is now the reverse. API is currently $842m and Sigma is $646m, about 30% more. After allowing for the potential loss of the marginal net profit from the Chemist Warehouse business after opportunity costs associated with the $300m of extended credit and extra inventory held are considered, there is no way that there should have been such a shift in comparative valuation of the two companies. I put it down to irrational market sentiment which is quite understandable.