Long Position, page-134

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jimk3758

23,273 Posts.

83

13/11/16

16:14

Post #: 20580809
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Originally posted by denbo ↑

Hi OptiontraderMGR

Great post.

My logic in staying with SGH is that I see it generating about a $bill p.a. right now in fees - and reason that, if it can control costs it should start making a profit soon - even as early as next year - and that income will likely increase as the UK market is exploited more.

Added to that, it appears to be making some progress in UK market which should only get better as time goes on.

Additionally, it has a solid business here in Aus - which has, and will continue to, support it during these tricky times.

Then - I see 'traditional' markets in a shaky position right now. No-one really knows what the Don is going to get up to next 12 months or how it's going to affect other industries - which kind of enhances businesses that don't rely on world economies to go local business.

Lastly - taking all the above into consideration, I see the long-term prospects for SGH as quite good. Certainly good enough for me to hang on to my holding, rather than actually take the guarantee of the massive hit that would occur if I sold.

And, I might add, I'm not adverse to taking that hit if I think it necessary to preserve what's left - but, given my above reasoning, I'm not sure I need to.

You're right, share trading isn't for nervous nellies - and if you are one you shouldn't do it and certainly shouldn't keep whingeing if you choose to and you screw up.

Any comment?

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Hi Denbo, since you ask I have a comment or questions really. Awhile back I know you said it was too late for you to exit as SP had dropped too much. I have also been in the mind set for over a year now. My question is what is your average now and if you were closer to break even would you exit now?

Also two events are likely to happen soon, the Barrister decision on escrow and ACA CA. Do you have any gut feeling about them regarding SP movement and do you see any other event or news before 1H results end of March? The reason I ask is if not don't you think SP will just go sideways or down until then?

SGH Price at posting: 32.0¢ Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

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