Logic?, page-8

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TechnicalsSayItAll

1,296 Posts.

31/12/15

08:08

Post #: 16706114
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Originally posted by Melrosian ↑

I repeat. Full year 2015 SGH PBT =A$119. I assume they will continue to earn the same from the pre QPP purchase business.
QPP( now WTG) guided shareholders that to June 2017 net proceeds for HL claims would be £20M ( C.A$40)
SGH paid zero for HL claims cases and therefore will also garner A$40M to June 2017. [They did NOT pay too much for that...steal of the century!]

SGH, after own diligence and valuation method, paid 6.3 X PAT for the core QPP PSD business
Since competitor Aim listed Redde plc is currently valued at 22 X PAT by the market, SGH paid one third of the amount each £1 of profit Redde is valued at by the market. That suggests SGH paid buttons ( 1/3rd of full price) for the cases purchased.

In my view SGH will have to throw A$100-120M at the working capital to get to cash generation stage. I as a QPP shareholder knew that, I was not a happy bunny at the steal price , and was pretty sure the shorts brigade would be all over SGH during the cash negative stage. One the shorts have got their teeth into a situation like this they will probably try to work it up and down until the weakness is clearly passed. I reckon 2017 will be very good fro SGH shareholders. Could be a lot sooner but certainly SGH has the feel of a company which will not give up on its 10% divy growth plan easily. Even if the recovery takes until 2017 the yield is great.

Mel ( still looking for Joubert with a rope)

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My views are the same re SGH not giving up on its dividend plan as promised.
In that case, one can imagine where SGH stock can go again by the end of August 2016.
DYOAR as always.

SGH Price at posting: 86.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last $50.72		Change 0.360(0.71%)		Mkt cap ! $20.64B

Open	High	Low	Value	Volume
$50.55	$50.84	$50.21	$11.06M	218.3K

Buyers (Bids)

No.	Vol.	Price($)
1	367	$50.68

Sellers (Offers)

Price($)	Vol.	No.
$50.95	367	1

View Market Depth

No.	Vol.	Price($)
1	367	50.680
1	99	50.200
1	500	50.100
1	100	50.050
1	105	50.020

Price($)	Vol.	No.
50.950	367	1
51.000	247	2
51.080	978	1
51.500	200	1
51.740	390	1

Last trade - 16.10pm 15/07/2025 (20 minute delay)

SGH (ASX) Chart

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