SGH (ASX) Still not cheap

Disagree... nice cherry picking of facts.

1. Earnings Quality: Page 17 of annual report clearly points out exactly the same... however you have completely ignored the expense adjustments to "normalise" income eg 25m in Acquisition costs and 25.4m payments to former owners. This pretty much negates the revenue adjustment.

2. Cash Flow... where's your substantiation for this. 2015 and 2014 had positive cash from operating activities of $54m in 2014 and $40.7m in 2015.

3. Retail is trapped... Capitulation has occured for sure in the last few days. Whether it has far to go or not remains to play out. Looks to have settled somewhat in last few days, but buyers are very cautious. Let's be honest anything could happen up or down from here. Sentiment is shot but nothing like a few green days to have people piling in again and shorts running. It happened just before the AGM so can happen again. Not saying it will, but my gut feel is that the those who have panicked and are going to sell already have. Index rebalance may be good or bad depending on which funds can get in again vs those that have to get out.

4. and 5... what figures you have put there are much more meaningless than SGH re-iterating it will meet Guidance. If people don't believe that why should they believe you?

6. Bonuses ... really clutching at straws there. Good for management to have skin in the game. Don't see how this is really even relevant when talking how much the market cap has dropped.

I suggest everyone actual go grab a beer, drink it, grab another one, read the annual report for yourself, read announcements and chill out a bit. Fear has been rampant with this but Greed will return at some stage. There is heaps of mis-information out there that is whipping up a bit of frenzy.

I'd say the $350m that has been wiped off the market cap in the last few days is a pretty big over-reaction. Especially from where it was back in April. I think the biggest thing that has hit this for 6 was all the expectation pre-AGM that everything was going to magically get better after the AGM. This combined with clear shorting opportunity if it broke below $2.55 and then $2.35 and you got a downward spiral. Anyway... I know if I had gone long on something at $2.55, had made a good 20-25% in 3 days and the move looked to be running out of steam I'd be taking my money and running, so wouldn't be surprised to see a bit of short covering bounce before a consolidation period as people re-evaluate.

Good luck all and dyor