By Malcolm Stacey | Tuesday 4 July 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello share takers. Energy costs are in the news again, with the government’s latest ploy to cap charges for the less well off among us. It doesn’t quite seem the right time to invest in electricity suppliers, does it?
So how about looking at a company which specialises in saving energy by supplying insulation.
I commend to your further investigations SIG (SHI). It’s the biggest supplier of insulating stuff for the building industry in Europe. It’s the market leader in the UK, Ireland, Germany and Poland. It’s the busiest supplier of roofing products in Blighty and Ireland.
Most of the gear is made by other companies and distributed by SIG. But it does a bit of manufacturing as well.
The Ftse 250 company has not been doing so well of late. It made a pre-tax loss of over £100m in 2016, after a long run of profitable years. But its fairly new big cheese is an expert in successful restructuring.
The name of this head honcho has the unusual moniker of Meinie Oldersma. This energetic chief executive has a fine track record having revitalised a dozen companies in a distinguished career.
It’s said that Meinie is likely to steer clear of a rights issue. It’s intended instead to concentrate on bringing in more cash and curbing costs. Yes, I know everybody is doing that nowadays, but SIG’s new boss is held up as a expert in the field. Meanwhile some assets may be sold off and acquisitions will probably not happen.
I have a silly bias towards northern firms and this one is based in the go-ahead city of Sheffield. Building supply is not keeping up with demand at the moment, and SIG may benefit from what is usually a money making situation.
Unlike the Punter’s Return.
Never miss a story.
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