Mighty your last paragraph in particular is spot on...the whole valuation of a company should be based on future cash flows. Now in relation to SGH the cash conversion of the AUS business has been reasonable and targeted for improvement.....in regard to SGS there is an obvious problem and the cash flow is not satisfactory. Whether this is temporary or structural the jury is still out so the future cash flows of SGS are uncertain and therefore any valuation should be conservative (worst case scenario).
SGH Price at posting:
83.0¢ Sentiment: Sell Disclosure: Not Held
