Buying SGH, page-138

These are my reasons for holding this stock.
1. It made close to $1 billion revenue last year and is going to make less, but still very significant amount.
2. Its UK acquisition has failed, but now a proud holder of a large UK market share. This will worth billions in years to come.
3. Banks know that there is no way of getting their money back until this company starts making profits again. They will extend the term of the loan.
4. If the term is extended, there will be no dilution to current holders.
5. Banks can see that company has made progress and they seem happy and have not requested change in management.
6. Directors own about 12 million shares, which was valued close to $100 million once, but they never sold them.
7. Company currently has big cases (VW, Manus Island etc ) that could bring $billions, if successful.
8. Company says that debt covenants have not been broken and they expect to sign a deal before the end of May.