Why is the sp stuck at 50 cps when a paper valuation (based on sale of the Pharma part of the bus for $900m) indicates above 70 cps?
Because too many tanked up heavily on these shares between 40 & 45 cps with the expectation of a quick payout of 5 - 10 cps on the sale to Aspen of the whole of Sigma. For, if Sigma ceased to exist then shareholders would get paid out.
Now that it is unclear what Sigma management will do with the $900m (besides pay off their debt and look around for opportunities) the speculators are getting out while they're still in profit.
I expect once that glut of shares has sold off and Sigma management gives shareholders reason to believe that the last debacle under Elmo de Alwis will not be repeated, then the sp will go back to what it should be.
Or (fingers crossed!) maybe management WILL consider a capital return. Though the chances of that are probably close to NIL considering the high cost of raising capital for those "opportunities" they might want to acquire.
(Sir) Lunchalot Scoffer Extraordinaire
SIP Price at posting:
50.0¢ Sentiment: LT Buy Disclosure: Not Held
