Hello Jim. I was not planning to post any more on SGH, but could not resist the urge to say something after seeing a huge drop in the SP over the last four days. As some posters have suggested, shorters seem to have encouraged by the unexpected news of " 50% pay rise for certain directors". It is irrational to give pay rise to directors when the company has lost more than $1 billion in a year and share price has gone down by 90%. It is even more irrational because the AGM is in about two months and managers have to answer angry shareholders queries on pay rise. Then why did they do it? As we know FY report is up to 30 June. My gut feeling is that cash flows must have improved significantly over the last two months and the management know that they have already turned the ship. They must be in a good position to justify the salary increase when they meet share holders and the press in two months time.
In my view, this is the worst time to sell your shares. Have you noticed that there are a lot of new posters pleading us to sell our shares now and move on? From my experience ( SBM, NWH, QAN), this is a clear sign that the share price is about to begin the recovery path.
SGH Price at posting:
36.5¢ Sentiment: Buy Disclosure: Held
