Buying SGH, page-153

I might be wrong, but if banks extends the term of the loan, this will replicate what SBM did. As many know, SBM had a bad acquisition and similar amount of debt to SGH. Many analysts gave no chance to them and the share price decimated from $4 to mere 7 cents. Almost all holders were panic and sold their shares mostly below 10 cents. within 18 months, they got rid of the bad asset and share price jumped from 7 cents to $3.90. If management acts wisely, this company can reach its former glory. The are making enough money, but need to manage them properly. As I have said many times, 10% cost saving will be equivalent to about $100 million annual profit for this company.