SIP sigma pharmaceuticals limited

My main gripe is with the management who apparently are paid to...

  1. 96 Posts.
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    My main gripe is with the management who apparently are paid to do nothing or even worse, make bad decisions.

    Sigma is still a viable and good company. Last year, the company had depreciation and amortisation of approx $ 45 million. This year, with a reported estimate of $ 67 million profit, I'm guessing their cashflow should still be about $ 100 million, and their debt is only around $ 300 million. The writeoff of about $ 425 is all non-cash, so the financial viablility of Sigma is in fact unaffected. The banks are acting tough because of a technical breach of interest cover due to the non-cash loss from writeoffs of goodwill.

    I have to believe that if the company is taken over and they get rid of the board and senior management, the company will save millions, and the market perception of this company will change. Its just too bad that we won't be able to share in the upside if that happens.
 
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