New Value Analysis of Stanley Gibbons Group Plc (SGI:LSE)

New Value Analysis of Stanley Gibbons Group Plc (SGI:LSE)

A new value analysis of Stanley Gibbons Group Plc (SGI:LSE), a company listed in London has been added to our research pages here.  SGI is best known as a reference source for stamps and as a buyer and seller of rare stamps.  More recently SGI has added rare coins, banknotes, medals and antiques to its services.

In the last year or so the share price of SGI has declined around 95% to its current level.  The reason for the decline was a decline in earnings.  The decline in earnings meant that SGI had to borrow money.  The debt and low earnings created significant risk for owners of the common stock.

SGI then made the decision to issue new common stock to raise money to pay off the debt and provide some working capital.  At the time of writing the new share issue looks like it will complete successfully.  For details read the company news item here.

My value analysis is based on the 2015 Annual Report data, but includes some references to the half year data released in September 2015 as well.  My analysis also shows the impact of the increased share count after the share issue.  The increase share issue impacts the price to earnings numbers and the price to book negatively.

However, the increased share count makes the financial structure of SGI more conservative for common stock holders.

To see exactly what difference the increased share count makes to the value assessment,  click here to download the new analysis.

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