Why I think SGP is a buy

According to ExpectingValue, SGP is on an upward Google trend over 5 years.
http://is.gd/3gbiNe . It trades on a PER of 10.9, has 30m in cash against a market cap of 357m.  Analyst forecasts look robust, and latest prelims http://is.gd/ZqQw3z show increasing gross profit
margin, 31.9% growth in revenue, and the chairman states that the fundamentals remain unchanged, but that the UK retail market over the next year looks to remain extremely competitive. The group has had three profit warnings over the last year. The problems relate to
production and management concerns, rather than revenue, though. This is reminiscent of PIC (Pace), whose shares have suffered swingeing declines, only to experience a massive bounceback. In both companies, management have been strengthened. I am expecting SGP to follow a similar pattern to PIC.

Obviously, not a share without a high risk of being wrong.

445p

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About mcturra2000

Computer programmer living in Scotland.
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One Response to Why I think SGP is a buy

  1. Pingback: SGP – follow-up | mcturra2000

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