The information needed is coming through the media, particularly AFR. Discount it all you like, but it's more useful for making sensible decisions than hope/prayer and sporadic disclosures from the company.
The AFR reported a few weeks ago that Macquarie and Citi had both sold chunks of their debt exposure to SGH at huge discounts - 38c and 45c in the dollar. These are discounts you rarely see, especially for a group like Macquarie which itself operates in the distressed debt space. In all seriousness, that tells me all I need to know.
How can there be equity value left if sophisticated lenders (who have ALL the info) think there's less than 50% value in the debt? It's distressed funds buying the debt - they are doing this to eventually take the whole thing in a restructure (look up Nine Entertainment before it re-listed, same situation)
AFR then disclosed the McGrath Nicol report which said a restructure is required.
Seriously, those two pieces of info tell shareholders all they need to know.
Obviously there's a lot of people in this at 90%+ paper loss so it probably doesn't matter, it's now just an option value.
But anyone thinking of buying shares... sorry but that's irrational. Follow the logic from the above and it's pretty clear cut (sadly)
PS not a shorter / downramper - just an interested former holder who has lost the lot in similar situation. GLTA
SGH Price at posting:
24.5¢ Sentiment: Sell Disclosure: Not Held
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