You say....... It was hardly speculative class .
I think this needs debating with you and also think it's what a lot of investors here missed.
To keep it simple I'll go along with SGH being non-speculative class before PSD purchase .
Speculative class is directly linked to risk and with these paper companies that makes the balance sheet even more important .
When they bought the PSD they blew the balance sheet risk to bits becaise......
They hadn't built up cash reserves through their growth period, they borrowed probably as much as they could and CR for the rest, the PSD wasn't fundamentally proven with years of profitable history, SGH historical CF/profits were not big enough for servicing the new debt . These and other reasons turned this company into speculative class because what they were actually doing was betting the whole house, no room for failure an all or nothing bet and to my mind that makes it very speculative.
Other past acquisitions they made didn't create such risk in the balance sheet .
How do you seem a share is speculative or not?
SGH Price at posting:
$3.15 Sentiment: Sell Disclosure: Not Held
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