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54.5¢ slater & gordon limited

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Biggsy 07

1,125 Posts.

326

17/03/16

16:18

Post #: 17302290
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Originally posted by Alex999 ↑

It is definitely not hopeless yet. Where there is life there is some hope. The banks have given them a month.

Yes, the well known brand will surely help with talent/client retention. In SGH's case it also helps very much that: fewer star lawyers, more lower level lawyers doing simple work. As well as fewer big clients, many more much smaller clients.

But not enough in my view. I could post an essay on the topic, and I have covered some key points several times before. The bottom line is white collar law firm is not made for eyeballs debt, reputational hits, financial distress and austerity. And it only takes small % of erosion on talent and clients to destroy the financial forecasts because firm leveraged for scale, which process then feeds on itself unstoppably.

No, I wouldn't buy SGH even if it was at 3c instead 30c. I don't like the listed law firm model at all (as I've posted before why) and I don't trust the management.

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You think their fair value is around 12 cents and you wouldn't buy them at 3 cents, now that makes a terrific amount of sense....

SGH Price at posting: 27.5¢ Sentiment: None Disclosure: Held
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