I read your confidence in part is underpinned by the syndicate actions. I think this should not be underestimated.
Much has been said about the executive team and the board. My mind always goes back to presently banks have a majority interest in the company and are reviewing progress regularly. Given management is critical to success I can imagine the syndicate, through its advisers, would not hesitate in forcing the issue if they thought a different executive would bring the desired result.
Actions and inactions of the syndicate are a telling story I believe. One could argue they have no choice but to be accommodative, I don't buy that exactly. Relatively speaking it is a small loan and could easily absorb it if too much trouble, they are not in the business of gambling; if their weighted risk assessment was not favourable I assume they would force the issue.
The syndicate have seen warts and all, they support it and half of themare prepared to back it with warrants. Let us not forget this.
SGH Price at posting:
38.5¢ Sentiment: Buy Disclosure: Held
