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19/09/16
22:12
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Originally posted by Nick Miller
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Fundamentals are only relevant to the extent they are predictable. Maybe that is what you are trying to say, lack of fundamentals makes this risky, and if so I agree. Fundamentals go out the window when you get to the speculative end of the spectrum. If fundamentals were already sound, the SP wouldn't be where it is and future potential returns wouldn't be as compelling. One can't have it both ways.
Agree that SGH isn't for everyone atm. Either SGH will fail or it will become sufficiently de-risked to attract other investors back. And the big end of town will not wait until debt is repaid before rejoining the party. It may be a long term play but I honestly think one, two or three consecutive promising half-year results will put the spotlight back on the stock. Notwithstanding warranty claims, third party claims, class actions, NIHL settlements etc.
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I think a lot of investors will have SGH on their radar and alarm set for the first good half-year result because the early mark up stage is where the real money is made.