I am amazed though with the incompetenece of the SGH management.
However when i look at the numbers, it is not hard to see why AG is so smug about things. Denial is there but i think SGH management has still not shown its hand in co ordination with the banking syndicate and FTI restructuring consultants in UK.
I think SGH ship can be turned around, albeit acting quickly is v v important.
Write downs is just a first little part of the game plan that will play out for coming 3-5 years.
I will still go with AG saying AFR that banks will re finance.
I wonder how some IDS are repeatedly posting the same message 25 times today re liquidation,CR raising, shareholders being pushed out etc etc.. What they R telling is that AG,FOWLIE AND all other SGH lawyers and employees with 40-50% of total holding are being thrown out as shareholders.
MARKET HAS OVERPLAYED ITS HAND HERE AND IS GOING TO LOSE IS MY PUNT.
u do what u think is right.
There will be a game plan. It wil be a good one. It will be accepted by the banks and with some hard yards SGH will be restored to good health.
TechnicalsSayItAll said:
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There is one big big flaw in the markets behaviour and pricing SGH stock to 35 cents from 810 cents.
Market has yet not seen even one card re financial re enegineering, SGH restructuring, OPEX cuts being played by SGH.
Amazing.
What will and can happen when SGH deals just one hand of beautiful finacial rengineering with OPEX CUTS and restructiuring of SGH.
Stay tuned. for my gut feel.
It is akll sinking in. I am having a good feeling. AG finally told some truth re that banks will extend the loan facility.
As i have been saying B4, OPEX can be cut here. restructuring can be done here. A far better and more agile and profitable SGH can emerge from here.
Needless to say that market has sold the pants off SGH beyond recognition without seeing even the first had of the game that SGH management under the restructuring gurus and banking syndicate is going to play. Finally market is in for a shock i think. It has overplayed its hand.
I dont think there will be a public CR. I dont think there will be even equity dillution even with the lending banks by swapping debt with equity as there is too much fat that can be cut here in UK .
cONSIDERING the posts on this board during the last few hours, there is a pattern that UR wise enough to judge and that certainly shows some vested interests and was reflected in the media too.
My logic re SGH remains the same. SGH is a 1 billion dollar revenue company. It can be made to deliver 25-30% margins in 12-18 months.Stay tuned . I will be squaring up some and bring my holding back to where it was.
SGH is still a no brainer. Risk reward ratio in my opinion is v good. U do ur own research and act accordingly. Good luck to all long term shareholders.
PS. During price action it is sometimes not possible to have clear thinking. when all settles down and sinks in then u get the right response from UR inner self.
(20min delay)