Australian Article reflects on possibility of stronger SGH

There is a good article titled "Slater could emerge stronger" out by the legal affairs editor at the Australian. The writer suggests, as I previously mentioned, that in the longer term Slater could emerge stronger as it did when it picked up market share when similar changes were made to Australian personal injury law several years ago. This makes plenty of sense in my opinion, as Slater's is essentially about industrializing the litigation process which means smaller private law firms can't compete and drop out of that section of the market.

Personally I think the risks regarding defaulting on covenants (those suggesting that the covenants may be related to share price should ask themselves whether a bank (8 different banks if I recall) would make such a deal) are very much overrated. Other factors, ASIC, short term cash-flow problems, bad company PR should all sort themselves out, patience is all that's needed. Happy to hold, a great business that's been around for over 80 years.

Articles subscriber only but Iv'e been able to access it on my phone.