What Happened to Sigma’s Share Price?
Sigma Pharmaceutical Limited [ASX:SIP] operates two divisions — wholesale and retail. The retail segment offers three pharmaceutical brands, Amcal Max, Amcal and Guardia, across various categories including heart health, bones, jones, diabetes and respiration. They also provide general well being solutions, i.e., cough and cold pain relief, sunscreen, etc. The wholesale business distributes products to over 4,000 retail pharmacies.
Sigma’s share price closed down 2.58% today.
Why Did This Happen to SIP Shares?
SIP shares fell today because Macquarie cut Sigma’s rating from outperform to neutral.
Macquarie says the cut was because of general pressure facing Australian.
However, it’s worth nothing that analysts surveyed by the Financial Times had a price target of 75 cents.
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What Now For SIP Ltd?
The lowest price this year for the stock was in early February when SIP touched 56 cents. Since then, Sigma has been in a strong uptrend.
In fact, the share price reached a 12 month high of 78 cents in late June. Sigma’s revenue for the 2014 was up 1.1% compared to the same period last year. And net profit after tax (NPAT) grew to $53.54million — up from $18.69 million the previous year.
Sigma has no debt. But be aware that they are exposed to retailing conditions. Further falls to consumer sentiment will see another see-off for this company.
Shae Smith+
Editor, Money Weekend
The post Why the Sigma Pharmaceutical Share Price Fall Today? appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
