$700m debt with $110m market cap tells the story. How do you pay that off with a reduced cash flow on a dud purchase? Bankers will either want a placement to strengthen the balance sheet (probably too late and who would believe their numbers?) or a complete restructure. I am not sure they will be put into liquidation, but this is a mess. Slaughter Hose might also go into suspend until they figure it out. Might do a Dick Smith at any time.
I wont try and pick the bottom with this as its probably going lower. These guys lost more than three times the accumulated profits they had made since listing 10 years ago. Good luck paying off that debt.
- Forums
- ASX - By Stock
- SGH
- True value is somewhere between $0 and $8
True value is somewhere between $0 and $8, page-8
-
-
- There are more pages in this discussion • 12 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SGH (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
SER
STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
SPONSORED BY The Market Online