Yes a mandatory increase to insurance is not a good thing for...

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tim8wilson

642 Posts.

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20/02/18

15:24

Post #: 31193110
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Originally posted by denbo ↑

While, on one hand, I wish SGH had a $Billion in insurance cover, you don't have to be a rocket-scientist to see why MB would want insurance cover minimums increased.

So much more dosh to go chasing after.

Frankly, I'd prefer repeats of this SGH FUBAR to be made impossible by more regulatory, (if they can't be trusted to do it themselves), DD before they get to spend other people's money.

The SGH fiasco seems to have been pear-shaped before it even got off the ground.

I recall there was a report done by a female financial person that valued Quindell at far less than what SGH paid for it - well in advance of the final deal being signed off on.

This alone should have triggered some kind of warning bells.

But it seemed to have been poo-poohed by AG and team who completely ignore it and surged ahead with their legendary Waterloo unphased.

And we all got caught up in their lemming-charge.

Serves us all right - there's no real excuse and pointing the finger is a useless exercise.

You get mixed up in stocks you should be prepared to take the hits - and, unfortunately, they include the stupidity of people you pick wrong to trust to do the right thing.

Isn't 20-20 rear vision analysis a wonderful thing.

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Yes a mandatory increase to insurance is not a good thing for shareholders collectively across all Australian companies. What you are basically doing is expecting all companies to subsidies unsuccessful ones with money skimmed off the top for both the insurance company and lawyers.

You are also unbalancing incentives by reducing the penalty for Shareholders who don't do due diligence on their investments, and penalizing those who make the right choices.

SGH Price at posting: $2.60 Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

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Yes a mandatory increase to insurance is not a good thing for...

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