I am prepared for a worst case, negative OCF number that will be funded from cash and/or an increase in gross debt. They have a facility to draw down on and that is what it's there for. Obviously a negative OCF number is not sustainable in the long run but we know what the business is transitioning from so in the short term ok IMO.
Will need to understand all the EBITDAW items, notwithstanding DAW as well, to see what is improving and what is still lagging.
Re. NIHL claims, are you able to direct me to a HC thread on this? I admit I don't fully understand it. Did they buy this portfolio as part of the SGS acquisition or is this separate? I also read on here that the 'asset' is held off balance sheet but I doubt that would be correct. There must be some provisioning for it.
For any South Park fans, I couldn't help but think of this 'Trapped in the Closet' song when reading this post. I think it is a good analogy for the short sellers and SGH hatters.
Us long-termers say:
"The closet door is open, why don't you come out of the closet?"
And they say:
"We're not coming out of the closet, so you can just go away."
Enjoy
SGH Price at posting:
53.5¢ Sentiment: Buy Disclosure: Held
