The Motley Fool Discussion Boards
Investment Analysis Clubs / Foolish Collective
|Subject: Sigma-Aldrich (SIAL)||Date: 1/25/2004 10:49 AM|
|Author: Solidago||Number: 27961 of 46866|
Looks like the Foolish Collective took a look at Sigma Aldrich Corp. last year, http://boards.fool.com/Message.asp?mid=19124646. I recently found this company on one of my screens and I decided to take a bit closer look. I like what I saw. Nice growth, good price and very shareholder friendly finances.
Here is my analysis:
SIGMA ALDRICH CORP (SIAL )
[Data from MSN]
1 Has the company performed well consistently?
ROE is increasing
2 Has the company avoided excess debt?
3 Can managers convert sales to profits?
Net profit remains about 10%.
4 Are managers handling shareholders' money rationally?
Managers are agressively buying back shares and increasing dividends!
5 Has management actually increased shareholder value?
6 Has the company consistently increased owner earnings?
7 Is the stock currently selling at a 25% discount to intrinsic value?
8 Is the business easy to understand?
This is not the easiest business to understand. Knowledge of chemistry is important to understanding the business.
9 Does the business have favorable long-term prospects?
This business is a Weak Franchise/Strong Commodity Business. Their specialty in chemicals for biotechnology/genetics is a growth industry that is likely to keep growing for a while.
10 Is management rational?
There is no current indication that management is not rational. However, I would like Mr. Harvey to foster some leadership development in his company buy promoting someone into either the Chairman or CEO position.
11 Is management candid with its shareholders?
I'm not sure yet on this one. While there isn't a lot put out for shareholders,
I'm not sure whether or not they are being candid with their shareholders. I haven't read any material yet by the company that discusses negative developments. Anyone here have an
opinion on this?
12 Does management resist the institutional imperative?
Not sure. They seem to have their own direction under David Harvey.
Let me know if you have any questions regarding my analysis. I'm hoping to make a purchase decision soon on this company and would love to hear your thoughts on it.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|