People switching on to this should recognise the significance of the fact Ernst & Young have not even raised an emphasis of matter about going concern, let alone qualified the accounts. It is the date of their audit report, not the date of the financial statements, that is critical in this regard. They have to be certain the company has sufficient resources available to enable it to operate normally for at least 12 months after the date of their audit report. In a case like SGH's E&Y's review of future trading needs and likely performance will probably have gone well beyond just 12 months.
With all that has been going on since late 2015 (calendar year), all the negative publicity about SGH and all the media, analysts' and amatuer sleuths' detailed analysis (most of it total guesswork, yet invariably negative) involving SGH's alleged cash predicament, ask yourself how likely it is that unless it was 100% satisfied that there are no going concern issues, one of the world's best firm of auditors would give SGH's published accounts a clean bill of health as to going concern at precisely the same time as SGH was submitting its forward plans to its bankers??
IMO this is the confirmation those holding shares in SGH have been waiting for that SGH will emerge safely - if not necessarily in exactly the same format - on the other side. The rest is about the detail and how well and how quickly SGH is going to recover.
Ask any accountant worth his salt for his or her opinion on the matter if you doubt what I say.
Can you tell people what I did for a living, please tumbleroll - and where I stood in the pecking order. You've made me too embarrassed to say.
SGH Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
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