ASX:SIG
Sigma Healthcare Ltd
Investment Summary
The fund managers believe that Sigma Healthcare Ltd (SIG) demonstrates strong fundamentals, particularly through its high-quality, defensive earnings. They express optimism regarding offshore expansion opportunities as well as attractive growth potential in domestic and international markets including New Zealand, Ireland, and China. Despite these positive attributes, the managers anticipate continued share price volatility due to market adjustments following Sigma's index inclusion. In their opinion, while the merger with Chemist Warehouse Group enhances Sigma's competitive position, there remains an element of risk regarding ACCC approval, requiring active management of their investment positions. Overall, their consensus highlights a cautious yet optimistic outlook for Sigma Healthcare amidst ongoing market developments.
Commentary From The Managers
Ten Cap
28 Feb 2025
$2.94
- Ten Cap continues to hold Sigma Healthcare Ltd due to its robust earnings profile.
- The recent investor presentation reaffirmed Sigma's defensive earnings qualities.
- While the update reiterated previous information from January, it provided additional details on sources of operating leverage.
- Active management of exposure remains a focus for Ten Cap.
Ten Cap
31 Jan 2025
$2.87
- Ten Cap has taken advantage of positive trading data to reduce their position in Sigma (SIG).
- The business demonstrates high quality and defensive earnings.
- There are exciting offshore expansion opportunities ahead.
- Expect continued share price volatility as the market adapts to index inclusion.
- Ten Cap is actively managing their position in response to market conditions.
Milford Asset Management
30 Nov 2024
$2.86
- Sigma Healthcare has shown a strong performance, rallying 47.4%.
- Milford Asset Management notes the confirmation from ACCC regarding the merger with Chemist Warehouse Group.
- Chemist Warehouse Group holds a dominant competitive position in its niche.
- There is an attractive growth pipeline for Sigma Healthcare both domestically and internationally.
- Growth opportunities are identified in New Zealand, Ireland, and China.
- Milford Asset Management continues to hold Sigma Healthcare due to these positive developments.
Milford Asset Management
31 Oct 2024
$1.96
- Sigma Pharmaceuticals has shown a positive performance, rallying by 36.5%.
- Growth is supported by an increasing likelihood of a merger with Chemist Warehouse.
- Chemist Warehouse holds a dominant competitive position in its niche.
- There is a strong growth pipeline internationally in markets such as New Zealand, Ireland, and China.
- Milford Asset Management remains confident in the probability of ACCC approval, though it acknowledges some uncertainty.
- The fund continues to manage position sizes to reflect the associated risks.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.