Loading up the truck, page-3037

I believe that talking about a class action on Slater and Gordon at this moment is useless because:

1. Class Action assumes that SGH management deceived investors on its revenue making ability in H1. If this is the case, then the company will go bust and those who involve in class action is not going to get anything. I do not think any sensible law firm will pursue a class action for years to get nothing.

2. If SGH management has in fact been honest, then they should demonstrate it in the coming announcements, particularly in the Business Update. If this happens, SP will start its recovery process making shareholders quite happy. Then shareholders will refrain from supporting the CA because it is irrational to do so when SP is going up at a rapid rate. I believe this is the case. Why?

Over last three years I have seen several ASX companies that went into VA (MBN, ARI, FGH, DSH, TON, etc.). In all of these cases, respective companies vanished within a very short period of time after the market was informed that they were in trouble. As we know, SGH is still trading. Bank appointed auditor has been investigating the company since December 2015. They had more than four months to call in the debt, if they really want. It is not going to happen. I believe that SGH management has been honest, but unlikely, their predictions were not accurate. That is why they called predictions not actual numbers. They should have predicted those numbers with one-period lag because I seriously believe that cash is coming in H2 and banks know it.