I have sold at a 50% loss and I feel for those down more. I made a back of the envelope decision that the risks are now to high, and significant dilution of capital is most likely down the line. The company has debt, and given the present outcome that most of the profitability of the business being taken away by the stroke of a pen, it is very concerning.
I wanted to stay for the turn around as news coming out of the company was positive, such as the new Chairman. However, this is going to put a lot of pressure on cash and the business in the short term. Instead of holding and hoping as I might have done a couple of years ago, and what I did with SGH, I have just moved on.
Best of luck to those wishing to stick it out and I hope there is a positive resolution to this to prevent what is looking like a capital raising coming, if they even can.
IMS Price at posting:
3.7¢ Sentiment: Hold Disclosure: Held
