$SGI.L – Stanley Gibbons – a comment on the balance sheet

Turnover/inventory is currently very low, and hints at the company’s poor cash collection. Its operating cashflows for the last two years have been negative. It has been free cashflow negative for the last three years.

Current portion of long debt was £0.28 at 31.3.2014, £2.5m at 31.3.2105, and £9.05n at 30.9.2015, according to Stockopedia’s stats. That is a worrying trend, especially considering over the last six years, the cumulative cash from operating activities was negative.

I think that this company is a lot weaker than many realise.

The company lost nearly 2/3 of its value over this calendar year. I imagine that a lot of long-term investors have found that unpalatable.


Update 20-Nov-2015: Just a couple of additions:

  1. SGI has a Piotroski score of 1, which is terrible
  2. Google Trends shows that interest in Stanley Gibbons has been steadily declining. Chart below.

2015-11-20 23_17_29-Google Trends - Web Search interest_ stanley gibbons - Worldwide, 2004 - present

Update 23-Feb-2016:  According to Paul Scott’s Stockopedia article, SGI has announced a £10m fundraising, against a market cap of £20m. Paul recommends against bottom-fishing. The shares fell 30% today to 44.9p.


About mcturra2000

Computer programmer living in Scotland.
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One Response to $SGI.L – Stanley Gibbons – a comment on the balance sheet

  1. Pingback: SGI – Stanley Gibbons – drops 20% | Mark Carter's blog

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