Financial (update 09/05/2022)
03/20/2024
For Portfolio II, III, IV
Close positions
Close the positions of Signet Jewelers (SIG) on the Portfolio II, III and IV. This is the down cycle for merchant companies, especially for Signet's engagement/wedding business after the prosperity during pandemic.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
09/05/2023
For Portfolio III
Increase position in investment
Signet Jewelers (SIG)
Increase the position of Signet Jewelers to 10% of Portfolio III.
We believe that Signet Jewelers' business is stabilizing at current economy condition which consumers' spending shift to services from good consumption and high interest rate. Revenue and net income will gradually improve from here.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
06/08/2023
For Portfolio III
Capital preservation
Signet Jewelers (SIG)
Further reduce the position of Signet Jewelers 50% for the Portfolio III.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
05/30/2023
For Portfolio III
Capital preservation
Signet Jewelers (SIG)
Close 50% of the position of Signet Jewelers in the Portfolio III due to retailers' slowdown in business.
The effect of raising interest rate has caused consumers to constrain their purchase even the traffic in Home Depot and Costco has slowed down. Also, that consumers shift their spending priority from goods to services puts even more pressure on retailers' business.
As the intention of Federal Reserve indicated, there will be no rate reduction at least not until second quarter of 2024 as inflation is stubborn as now unless an acute recession happens.
The retailers will continue to feel the pressure.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
03/22/2023
For Portfolio III
Position increase
Signet Jewelers (SIG)
Increase the holding of SIG to 20% of the Portfolio III
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
12/13/2022
For Portfolio III
Increase holding
Signet Jewelers Inc (SIG)
Increase the position of SIG to 10% in the Portfolio III.
Management and members of Signet Jewelers continue to execute sound strategies and gain customers satisfactory. Although there are economical headwinds against the company, expectation that Signet Jewelers will perform well is positive.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
09/01/2022
For Portfolio III
Capital preservation
Signet Jewelers (SIG)
Reduce 50% of current holding of SIG.
Softwater Investment continues to believe that SIG is still undervalued at current price; however, market as usual continue to give a low earning multiple to SIG. In order to come back later, we believe that capital preservation for purchase of SIG later is a good option.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Consulting with financial professionals is always recommended.
06/07/2022
Signet Jewelers (SIG)
Increase the position of Signet Jewelers to 10% of the portfolio III
Here in Software Investment, we intent to further increase investment in SIG. Since 2017, CEO Gina Drosos has re-made Signet Jeweler as a corporation of new generation, change company culture, re-focus on business of jewelers. SIG has demonstrated its capability and capacity to outperform the company of 2017.
04/06/2022
Axos Financial (AX), Cracker Barrel Old Country Store (CBRL), Signet Jewelers (SIG)
Decrease current position by 30% for the following securities
Axos Financial (AX)
Cracker Barrel Old Country Store (CBRL)
Signet Jewelers (SIG)
01/21/2022 -
Sell majority holding of SIG, and keep a portion of shares as 10% of the portfolio
To preserve cash for future investing power.
06/16/2021 - Signet Jewelers (SIG)
Reduce the position of SIG to 30% of the portfolio (portfolio III)
Increase cash position for future investment opportunities
Should have the effect of long term capital gain with lower capital gain tax bracket
03/20/2021 - Signet Jewelers
Fourth Quarter Fiscal 2021 highlight from company's 8-K filing
•Total sales were $2.2 billion, an increase of 1.5% to last year. Same store sales ("SSS") grew 7.0%2.
•eCommerce sales increased 70.5% to last year and were 23.4% of sales.
•Brick and mortar SSS were down 4.2%.
•Operating cash flow of $1.4 billion with cash and cash equivalents of $1.2 billion at year end.
•Ending inventory was $2.0 billion, $299 million lower to last year.
•Fully paid down revolving credit facility and FILO loan during the quarter.
It is a very brilliant result at the end of fiscal 2021. Also, the company announced that the board of directors decided to pay a cash dividend to preferred shareholders implying the balance sheet is strong.
There is $1.1 billion of cash and equivalents, $2.0 billion inventory in the balance sheet comparing $147 million debt, and $1307 million account payables and accrued expenses. Moreover, the company generates $344 million cash flow from operation (excluding change in working capital and deferred taxes) in fiscal 2021. Still, the company has $82 million of delayed rent payment from April, May, and June of 2020 and expect to pay down by the end of second quarter fiscal 2022 (July, 2021).
See Financial Data for update.
For the fiscal year of 2021, Signet Jewelers has demonstrated the resilience and perseverance in the difficulty of pandemic. Not only outperform itself financially, more importantly, Signet Jewelers' turnaround builds an all involved new corporate culture which will be the driving force to propel the company forward. It is also happy to see CEO Gina Drosos announces the initiation of a minimum wage of $15 in two years.
Therefore, tracking quarterly reports of Signet Jewelers becomes less important.
From time to time, the change of position invested in SIG and significant events affecting the company will be posted.
12/12/2020 - Signet Jewelers
12/12/2020 - Signet Jewelers
09/26/2020 - Signet Jewelers
Increase investment in Signet Jewelers according personal preference and tolerance.
09/04/2020 - Signet Jewelers
Info provided by Q2 2021 indicates a better result after re-opening of stores.
07/07/2020 - Signet Jewelers
05/01/2020 - Signet Jewelers
03/30/2020 - Signet Jewelers
Estimated (mine) possible loss if lock down prolongs for one year.
03/23/2020 - Signet Jewelers
Signet closed all of brick and mortar stores due to Covid-19.
03/11/2020 - Signet Jewelers
Class arbitrary against Signet Jewelers for sexual harassment and work inequality.
12/06/2019 - Signet Jewelers
Correction - Signet Jewelers. However, the financial data has been corrected at this time
March 2019 - Signet Jewelers