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Ann: In Principle Conditional Settlement of Hall Proceeding, page-39

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rosencrantz

2,786 Posts.

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11/07/17

11:45

Post #: 25788723
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Originally posted by HK1 ↑

There are a few opinions here where are factually incorrect:
- This has not removed all pending bad news for the company. We still don't know if the company is cashflow positive or is making a profit. Also, the recapitalisation has not been approved yet.
- "We" are going after Quindell. The Quindell/WTG lawsuit has effectively been ring-fenced by the new owners. So the current shareholders (the "We", i assume you mean) will see no benefit of this.
- CA for places like Manus? This is immaterial and irrelevant - this is BAU stuff for S&G. Although it would be nice for SGH if there could stop the revenue decline.
- The lifeboat from Anchorage? You may want to read the recapitalisation agreement and the HC thread about it. A 96%+ dilution is not a lifeboat.

This announcement has no material effect to SGH - it was always going to end one of two way, either going to court for years, or payout from insurance. The insurance company has rolled over (for the "unexpectedly low" insured amount) and the new owners have played their hand perfectly (as well they should, they are the experts on this after all). If you are a current shareholder, you should take note of this play by the new owners - they are three steps ahead of everyone here and know exactly what they are doing to maximise their profit.

The current share price (of 7.8c) values the new company at about $680m. And remember all the downsides to current shareholders regarding the new Warrants and Convertible Notes.

This announcement is good news for Anchorage and its partners. The current shareholders position is unchanged from last week - still in a boat, on a river, with no paddle and not knowing what is around the corner.

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This announcement is good news for Anchorage and its partners.
Agreed. It's also good for shareholders buying today on the news that the company's capacity to regenerate the prior history of earnings ( $82million in FY2015) will flow from energised new management and strategic investors .

SGH Price at posting: 8.3¢ Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

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Ann: In Principle Conditional Settlement of Hall Proceeding, page-39

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