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SGH

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54.5¢ slater & gordon limited

Ann: Recapitalisation Agreement, page-178

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student trader

18 Posts.

30/06/17

10:23

Post #: 25584495
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Originally posted by walkingeagle ↑

Whether or not SGH will now be all but debt-free (compared with what it was) who in their right mind would think a company with SGH's present profile - struggling to break even and seen as a corporate disaster by many no doubt, mainly because it is - is worth 25x its current share price (which is what the situation presently amounts to). Put another way, there are soon going to be 25x more shares in issue (20x if you want to ignore the warrants, which you shouldn't). I make that approx 9.3bn shares and that would give SGH a market cap of approx $832m based on a price today of 8.9 cents. On a p/e of (say) 10 (caution will be the watchword until SGH can prove it has recovered) earnings would have to be $83m (that's net earnings after tax - not EBITDA) to justify it.

If it turns out the facilities now promised aren't enough, you can bet your bottom dollar the extra money needed would be put up by AC et al at a whopping price; the best shareholders could hope for would be a placing/s at a big discount.

I'll stick to my hunch all along: 5 cents soon. People usually come to their senses when they're forced to.

Well done for misleading so many people so fundamentally and for so long, SWC, gecko, krispy and a few others. Shows how much you know, much less understand. Who's the w***** now, djroberts? You've gone a bit quiet.

Good luck all others. My race here is run - I was only interested in what the outcome would be. More or less the same as in UK: XEL, where shareholders were set to reject the bondholders' (mainly hedge funds') offer that they should keep 1.5% of the then existing share cap in return for cancellation of the bonds and the bondholders would put up $10m working capital. The hedge funds put the company down instead and shareholders got nothing. It's what happens and it will happen here if shareholders reject what's on offer. Latest news of XEL (ex) is that the bondholders picked up the assets from the liquidator for $1 and put up $10m working capital. They'll sell the new company when it suits them. Speaking as a former shareholder: "ouch".

AG deserves hanging.

all imho/dyor

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You have a serious problem Walking Eagle

SGH Price at posting: 8.4¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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