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Similar picture to last month - EU poor / UK good, but crucially the supply chains look robust I think.
Our fickle SP so far showing no real signs of response either way and I think the market is perhaps just hesitant ahead of the ECB.
This morning sees the release of the latest construction PMI reports, like the one’s I mentioned before that may have triggered some of the volatility last month.
The EU one is released at 9.30 CEST (8.30am BST equivalent), the UK one is 9.30am BST
I think they should appear as pdf links on this page later: https://www.pmi.spglobal.com/Public
Then eyes on the ECB for an expected rate cut at 1.15pm BST, the press conference afterwards likely more important.
With UK & EU economy growing and interest rates about to be cut......., feels like a £1 is possible for sigmaroc here, long term holder, DYOR
Technical chart on lse, weekly view on the one year, shows bearish pivot high, on 6/5/24, at 69. At present the overall chart is in a sideways congestion, and probability favours a breakout to the bullish upside. The bearish weekly pivot high of 69, is part of the current sideways movement, so a break above 69, with a closing price, would be bullish initially, with some subsequent highs at area of 70 to clear before cleared resistance ahead. DYOR.
Thanks for responses guys. My biggest holding by miles so I get twitchy now and again! Love the way it’s all going though. Should be a big rerating one of these days if we don’t get diluted!
That Cemfree buy makes a lot of sense. It's already part of their Greenbloc product so they have ensured continuity of supply by now owning the IP for it, and the cost they would previously have had for sourcing the product is also now inhouse and an offset against whatever they paid to buy the company. Plus it stops any competitors gaining any advantage and/or price hikes if they had bought it instead. Win/win :)
Very interesting,Corryreckan1.that certainly makes sense, thanks.
The previous link was the EU report only, this one for the UK:
https://www.pmi.spglobal.com/Public/Home/PressRelease/1d5b06d5c76c47238c8171cb23b9ad73
Agreed, that purchase would be easily covered from existing resources.
I think the poor EU Construction PMI report on 7 May last week may have been the catalyst here. The SP started falling from the same day. The UK PMI the same day was a lot better though, and obviously the new lime businesses extend the company beyond construction, but overall the market sentiment would respond to the PMI.
Link to the report here - this will automatically download/open a pdf from S&P Global on your device:
https://www.pmi.spglobal.com/Public/Home/PressRelease/bbc758cdaa0a4ec3874fe05ead1247d3
Very much doubt that is the reason.the purchase was not RNSd ,so as someone else mentioned not materially significant and as acquired out of bankruptcy unlikely to have cost much.agree that the drop is a bit puzzling,as momentum seemed very much in the opposite direction.
Are we expecting a fund raise after the latest purchase? Can’t see why share price dropping otherwise?
Https://www.constructionenquirer.com/2024/05/13/pudlo-waterproofing-brand-rescued-from-administration/
Doubt src paid much as no rns.
So fidelity have taken a 5% plus stake in SRC.very interesting.
I ss we have a trading statement on the 12th, presumably ahead of the agm.
Mega brings her ESG experience, just when the tide is turning on this nonsense. Just my opinion but ESG and DEI are now being attacked increasingly, but I guess for now they have to play the game, given BlackRock investment.
More accurate to have said limestone quarry.
The sp has dipped slightly on release of the results. Nothing to be overly concerned with. The bottom line has taken a hit from interest payments which is to be expected. Also importantly, due to the timing of the CRH deal in early Jan, more than £20m in associated costs.
Going forward, the view is that interest rates are on the way down this year. With regard to H1 and Full Year bottom lines for this year, we know that some of the CRH deal costs have already been accounted for. Plus we can expect to see increased revenues as a result of that initial deal. Throw into the mix the recent additions to the board and I'm happy to hold. That said we won't see the full benefit of the whole CRH deal and Interest rate reductions until Full Year 2025. By then, it is quite possible that the sp will have gone back over 100p.
Agreed on Peter Johnson. I note that he was a CEO of Rugby Group, manufacturers of cement in Rugby, with their own limestone mine in Southam. A useful addition to the board.
Also Francesca Medda seems to have been involved all over the place with her multi-talents. Sigmaroc have highlighted her experience including in public finance, ESG and innovation, which indicates why she's joining the board.
Johnson looks like a real heavyweight.not quite sure what medda will add, but perhaps she will bring an additional perspective/dimension to the existing mix.
Things moving forward as expected.
Very much agree with that.would be very surprising if the rest of the deal did not go through(although i accept that nothing is ever absolutely certain)
The deal with CRH is a game changer. Assuming the rest of the deal goes through, Sigmaroc look like being the largest lime producer in Europe. As I understand it CRH are committed to buying Lime from them. The price of lime is not going to collapse as it is required for the green revolution. The Sigmaroc team have done really well to negotiate this and get the deal through. An eventual main market listing would be the icing on cake, who knows, but would definitely push the sp up.
Pleased to see MI Chelverton fund taking just under 4% stake.
Very encouraging.
As the price of the share is rising steadily, I thought I would get a company perspective.
The information I got was that the Lime transaction that was announced weeks ago was in discussion last year.
This is when I was complaining bitterly to the company about shareholder value.
The transaction seems to have been positive with regards to inflow of investment from UK, Europe and encouragingly from the US.
Thi as appears to be prompted by the scale now achieved by SRC and a business that now has a a more balanced portfolio of products.
This overrides the concerns over the increased debt, which private investors have commented on.
They significant integration work to complete over 2 years or so and IT systems figure largely in this. They are confident that this will go smoothly.
So it seems to have the thumbs up from the institutions based on a solid business now with sufficient scale.
They believe the share price has a way to go, I hope they are right.
I am still down here but not so much now as I added at coca 44p.