SGH 0.00% 54.5¢ slater & gordon limited

I am back. So is SGH, page-805

  1. 4,431 Posts.
    It is so so simple. Under normal circumstances a company with 850 million revneue should sell anywhere at a multiple of 3 to 7 times its revnue.....means SGH market cap is worth say on the lower side of the scale 2.4 billion dollars. even if U deduct 800 millon for debt it is still 1.6 billion dollars and U can add 80 million for ESCROW and 200 million for NIHL and assume that CA is settled and paid by insurance.
    So that makes SGH worth 1.9 billion. U divided that 1.9 billion by say 400 million shares it still gives a SGH stock price of 5 dollars if and when things get to normal.
    Anchorage people know that.
    The issue is how,in what way and how soon to get to normal scenario in terms of margins with SGH.
    Remember SGH has written off nearly 1 billion dollars since UK purchase and my considered opinion is that WTG will be roped in one way or the other and will have to foot in some of that bill of 1 billion dollars plus write off apart from paying back ESCROW money.
    WTG as per my view is already bending on its knees, SGH just needs to remove its belt and do the rest.
    HAVE A LOVELY day.
 
watchlist Created with Sketch. Add SGH (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.