What do you think of S&G and the SP, page-11

On fundamentals, this  co. Is an avoid imo. As i have  posted before cashflow is poor, profit growth has not matched headdline growth and that profit growth is not throwing off cash. As for $7 again, it won't happen. Either more capital raising or cleanout of management, or a breakup. From Motley Fool:

Unsustainable growth
Looking at the company’s financials clearly shows the problem with Slater & Gordon. As Tony Hansen from Eternal Growth Partners has pointed out, “A business that is trying to build scale should show characteristics of operating leverage, or in simple terms, a 10% increase in revenue should lead to a more than 10% increase in profits”.
Since 2009, Slater & Gordon have grown revenues at a compound annual rate (CAGR) of 32%. Unfortunately, over the same period, net profit after tax has grown at a lower rate of 29%. That is mainly because the company’s expenses have increased at a faster rate. As an example, advertising and marketing fees have grown at a compound rate of 54%, and administration fees have soared from $8.7 million in 2009 to $36.4 million in 2014. That’s a compound annual rate of 33%.
You would think that a company such as Slater & Gordon would be able to achieve some synergies through its acquisitions particularly in admin costs, even if it was minimal. Clearly, it has not and profit margins have suffered as a result too.

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8
0		CAGR	2009	2010	2011	2012	2013	2014
1	Fee Revenue	32%	101.0	122.2	178.0	213.8	294.2	411.8
2	Net profit after tax (reported)	29%	17.0	19.8	27.9	25.0	41.5	61.1
3	Earnings per share (reported)	14%	15.8	17.9	19.1	16.2	24.0	30.4

Source: Company reports
Negative free cash flows
Taking operating cash flow and subtracting capital expenses such as acquisitions leaves Slater & Gordon with a free cash flow figure of minus $161 million in the past 6 years. In other words, the company has generated zero value for shareholders and has actually gone backwards. To fund the shortfall, Slater & Gordon has also raised an additional $180 million from shareholders.
That is shown in the lower growth in earnings per share (EPS), which has grown at a compound rate of 14% as shares have virtually doubled from 108 million in 2009 to 201 million currently.

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8
0		Total	2009	2010	2011	2012	2013	2014
1	Operating cash flow	147.2	-0.8	24.7	20.0	16.0	32.7	54.5
2	Free cash flow	-160.9	-11.6	9.2	-47.0	-54.4	13.9	-71.1

Source: Company reports