Sigma At Support
Despite a stronger performance, investors appear disappointed with Sigma's H1 results - bringing the stock to a key chart point.
If Sigma is not a familiar name, Amcal probably is. Sigma is a wholesale pharmaceutical provider whose brands include Amcal. Its sales growth has been a bit run down recently. They could probably do with a bit of a tonic. Cuts to the government’s Pharmaceutical Benefits Scheme have been a headwind and total sales growth was 2.6% for the year
However, Sigma has a strong balance sheet. It’s had an ongoing buyback program and this will continue. It will buy back shares instead of paying a dividend this half. Further capital management is a possibility if Sigma can’t find businesses to buy with its spare cash. This potential for buy back support might put the trend line which currently intersects at around 76c on the radar for potential buyers of this stock.
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