My post yesterday made for good reading for many of the companies featured, as their share graphs showed a nice steady rise throughout the year. A good thing of course. However, there was one comparison of two charts in particular which showed two distinctly different fortunes throughout this year.
Pilks vs SG
These are the two companies in particular, and their share price performance throughout 2015:
Pilkington – 1 Year
Saint-Gobain – 1 Year
Pilkington shares actually did OK throughout most of this year, with a slowly rising price and little shocks along the way. Yet, towards the back end of this year, shares took dive, with a couple of sharp shocks on the way.
Saint Gobain on the other hand took off mid-February and had a strong year since, although share prices did fall back slightly from yearly highs. Still, they’re way up compared to the beginning of the year.
But lets take a bit of a further look back:
Pilkington – 5 Year
Saint-Gobain – 5 Year
A bit up and down for Saint Gobain, but overall a rising trend over the past five years. Likewise for Pilks, with a general rising trend, that is until midway through this year, where there has been a sharp sell-off in shares. Putting the two performances side by side:
Charts credit: Bloomberg Business
The news is not good for Pilks unfortunately. Share prices are at their lowest for five years. Perhaps to be expected after a few years of posting losses. Not circumstances where people would be falling over themselves to invest. Happy reading for Saint Gobain however, in their 350th year in business.
How can they turn things around?
For me, Saint Gobain are on top because their product innovation is way ahead of the competition. A particular favourite of mine being Sage Glass. Once they have perfected the supply route to Europe and the UK, and a pricing point that UK home owners will be happy with, this product is going to change the game when it comes to glazed extensions.
SG have quietly gone about their business, building strength via an expansive product portfolio that has put them in a prime position in the global construction products market.
I think quality has to be the new focus for Pilks too. We sell products at our place using products from both glass makers, and I can say that Saint Gobain is coming out on top in the quality stakes.
What will 2016 hold for the two companies? Time will tell.
