It is amazing how the mind of some posters is colored.
They dont even read the full message.what to talk of understanding it.
Then start giving their own colored explanations and calculation.
Good luck to u.
(What do U think market is going to do if
the debt holders agree
to swap 500 million debt to swap into convertible bonds/warrants 2-3 years out at 20 % discount to market price of SGH at that time.)
So if the SGH stock price for example is 5 dollars at that time, then 500 million is swapped for at a discount of 20% for shares worth 420 million dollars which will be approximately 125 million shares,
so debt holders make cool 500 million dollars on the shares if they want to sell them at that time.
They still have 250 million or so worth of debt whci can be paid by ESCROW money and NIHL money if that comes home.
So in 2-3 years SGH becomes completely debt free .nearly even if we consider that debt holders inject another 50 million cash now to provide extra working capital.
With this debt holders multiply their capital by 3-4 times in 2-3 years.
Any way, let us look at what market is shouting at us at the moment.
Bulls are digging in and not giving their ground.
Reason being that if 14 breaks out , there is not much in the way of resistance except we have a gap at 23-27.
Some resistance at 20 which was previous double bottom support and was broken.
However looks like 23-27 gap is a bigger magnet if and when 14 is broken on the upside .
Market in waiting mode.
Let us see when sideliners, bears and shorts get restless and fearful of missing out.
I hope it is not too late lest they keep dreaming of laughable 1-2 cent scenarios even when market at the moment istelling a different story.
