A company is not properly valued at book value. Book value is purely an accounting term.
To properly value a company professionals will consider sustainability and future earnings capacity. Where is that included in the book value (balance sheet)?
You may say that the current share price reflects all this and that it is taken into consideration?
Maybe not so much when someone consider all the negative press and HC down ramping over at least year and a half.
Once the debt get reduced and you see that the company is sustainable do you then think you will be looking at a shareprice of $0.12?
At that stage we may be looking at $8+ (the share price less than two years ago) everything else equal but of course that is not considering any dilution.
A dilution of 90% would then leave us with a share price of $0.80.
Of course we don't know about the size of the dilution but we do know that this company is not worthless. SGH management and new lenders know that also
If I were to listen to any HC poster I would consider why that person (or whatever it may be) was posting like that and also what facts were brought to the table
So me selling for $0.12?
No thanks.
SGH Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
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