Croasian, thanks for taking the time to reply that bit is appreciated. Unfortunately I have learned nothing and therefore my assessment stills hold true.
A little bit of advice for you, when attempting a critical analysis ensure you write coherently and your key points hold up:
1. you appear to be basing 'your quantitative analysis' on Quindell accounts history - inappropriate
2. the company did not acknowledge Quindell is worthless, the company has not made a statement about Quindell. The company did say that clearly due to its writedown SGS is worth materially less than it paid for it. That is in reference to book value, it does not necessarily mean it will not generate cash flows into the future. There could be a counter-argument that says now the books have been 'kitchen sinked', after a consolidation period the lower base may be a springboard to resume its place as a growth company.
3. 'The legal services business is the bit of Quindell that was acquired by SGH', this comment is incorrect by omission. I don't believe you deliberately did this, just showing naivety and not understanding the business. SGH acquired complimentary services alongside legal services. The complimentary services part of the acquisition was profitable in 1hFY16
The rest is just a muddled mess of blog site and media headlines attempting to weave into value/growth investing principles.
Thanks for the effort but no idea.
SGH Price at posting:
27.5¢ Sentiment: Hold Disclosure: Held
