SGH 0.00% 54.5¢ slater & gordon limited

Well it's up another 22% so far today but still significantly...

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    Well it's up another 22% so far today but still significantly below the Morningstar fair value target of $4.11.

    I fear that they'll just force the sale of the 5% dad and mum holders for SFA (actually it's already at SFA) then make the SP go up significantly (several ways to do this including the one that there's no reason for them now to hold back profitability as seemed to be happening before e.g. by spending hugely on advertising and they can allow cash flow to increase by improving the Australian business) and they'll slowly sell shares off, making an even larger profit than expected.

    OR they could take the dads and mums along on the ride. In that case I'll sell off at about 35c i mean $35. I can't see it ever getting back above the old $1 mark though.
    The other thing that they could do is issue dividends of say 50c p.a. when things pick up a bit more (did I say that I'm an optimist) then they'd get their initial cash back after a number of years and the SP would go to say $10 to $20 or more.
 
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