I think your comparison to DSH really hits at the reality of the fuel for this fire.
On the surface similar but in reality one big difference - apart from these anomalies and the obvious issue in UK and debt SGH effectively has a solid underlying business (at least in the Macro sense and with good management should be able to be turned)
DSH was always fighting against the wind - strong competition in the retail space from a number of parties let alone online, the risk of retail aversion due to the economy, failed strategies and of course the books were rotten to the core due to the private equity working over which would have been plain to the banking fraternity - they likely saw tangible assets and thought lets get out what we can before the building burns to the ground
I totally agree with your sentiment, there is little value for asset stripping here with SGH to repay debt - the banks they have to help make this work
The biggest risk for current shareholders in low ball cap raising not banruptcy IMHO
SGH Price at posting:
60.0¢ Sentiment: Hold Disclosure: Held
