FY16 results - My thoughts on OCF, non-recurring expenses and debt, page-161

Jim

Had a look at the shorting activity on QPP in the 6 months before the deal. Unbelieveable.
There was evidence that the QPP was having difficulty getting cash flow to flow and the speculation was that ins companies believed that QPP was lawyer lite and would be reluctant to litigate on difficult/unclear cases.
You could also have considered the post deal eye watering gearing ratios.
Perfect storm? and when I first looked at SGH I was sure it wasn't for me and that shorties would exploit.

Now its different. Exit of instps and shorties have ensured that SGH is undervalued. Fixed it has to generate 9 fig profits and get back to a normal valuation multiple ( of profits). Dull slow and not terribly exciting with unclear growth path - SGH will be, in time, worth several times its current level unless poor performance means fixing gearing ratios can only be achieved by dilution. There is a lot riding on SGH ablity to unlock the NIHL logjam and eke value from WIP written down. My bet is it still can but would have liked a more optimistic , less business school gobbledegook / misty approach to telling us about what expectations can be.

Mel