The selling has to come to end at some stage and investor will realise that the company holds value, retail is just in a major transition from brick and mortar dependency to online. Signet is and has taken significant measure to address the move through inventory control, store closures, lease negotiations and improved online presence. We think that the stock has possibly found support and a long opportunity may be on the horizon. We await greater volume and they bullish divergences to become more pronounced. Any positive news could bring a mighty short squeeze.
Market capitalization of $0.9 billion and enterprise value of $2 billion is backstopped by $1.6 billion non-cash working capital. At current levels, with a well-funded 8+% dividend yield, in my view SIG constitutes an exceptional investment suitable for contrarian and value-seeking investors. SIG is not in existential risk. The company should continue to generate robust free cash flow. Debt servicing metrics are reasonable and should improve. Short interest 23.57%