SGH is really a company that is at the bottom and no one knows where it could go. I have been following it for years but never found a compelling argument to invest. It has literally gone from $20 to $20 to 1c (then 100:1 split, so $1 and now 88c).
I invested in SHJ 12-18 months ago because of the way the company is run and the Financial Accounts it was showing. I am keeping a very close eye on SHJ for any slips and "red flags", but so far the reports are all positive and showing that the company is being run by competent management, the reports are not hyping things and generally the company is going okay. SHJ is paying a dividend, so that is a great sign.
Could SGH double from todays price? Sure. Could it half? Absolutely. The same could be said for SHJ, but what is the probability? I see SHJ as a well managed company and doing the right things. There is still significant upside with SHJ - the PE is somewhere around 8x.... so there is plenty of negative already priced in.
I think any services company should be looked at with a healthy amount of skepticism..... the management can effect things, the market can effect things and if people stop paying for their service, then the company needs to react. I think that SHJ management is doing well and I am looking to hold shares in SHJ for the long term.
SGH Price at posting:
88.0¢ Sentiment: None Disclosure: Not Held
