Ann: Market Guidance, page-37

Hi just had a set of questions after pondering over your post.

1. Regarding the "other companies" from your post, were you referring to companies that use accrual accounting on their balance sheets?

2. What would be the typical successful cash conversion rate for companies in general? ~70%?

3. Any suggestions why the cash conversion for a few of Shine's years were a bit poor? Is it possible it was due to new acquisitions?

4. How would you value a company like Shine Lawyers? Should it be valued at a P/E & etc more like a growth company? Or should it be valued like a mature company as extra shares may be issued for growth which may be too dilutive in the future eg. to earnings?

5. Haven't read through much of your SGH posts but I was wondering how did you model the valuation for SGH and should the approach be similar to a SHJ valuation? Should it still remain valued as a growth company at this stage?

Highly appreciate your feedback on this.

I too shifted a major chunk of the SGH part of my portfolio into SHJ on the day after the suspension when it became quite obvious at that point that the risk/reward here is now a far cry from that of SGH.

Sincerely,
Kyn