SIG

Signet Jewelers Limited

Consumer


Presented:03/10/2014
Price:$97.49
Cap:$7.82B
Current Price:$99.53
Cap:$4.38B

Presented

Date03/10/2014
Price$97.49
Market Cap$7.82B
Ent Value$7.78B
P/E Ratio29.2x
Book Value$32.95
Div Yield0.6%
Shares O/S80.22M
Ave Daily Vol1,390,000
Short Int2.75%

Current

Price$99.53
Market Cap$4.38B
Signet Jewelers Limited engages in the retail sale of jewelry and watches in the United States, the United Kingdom, the Republic of Ireland, and the Channel Islands. The company operates through US and UK divisions. As of February 2, 2013, the US division operated a network of 1,443 stores in 50 states, including stores that trade nationally in malls and off-mall locations as ‘Kay Jewelers’, and regionally under the mall-based brands; and destination superstores under the ‘Jared The Galleria Of Jewelry’ brand, as well as Ultra stores. The UK division operated a network of 511 stores, including 14 stores in the Republic of Ireland and 3 in the Channel Islands under the ‘H.Samuel’, ‘Ernest Jones’, and ‘Leslie Davis’ trade names in regional shopping malls and high street locations. Signet Jewelers Limited was founded in 1950 and is based in Hamilton, Bermuda.

Highlights

The presenter was interested in Signet (SIG) prior to the announcement of the Zale acquisition, and now likes the story even more as there are multiple ways shareholders can win. With a dominant position in the US jewelry industry, the combined entity is potentially a “category killer” with multiple potential positive catalysts including, but not limited to: greater synergies than management has guided to, a potential reduction in the corporate tax rate, and a better capital allocation strategy. He summarized his view as follows:

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Idea Discussion

Commentor 1 - 2 weeks ago

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