"... some new comers who have nfi about this stock"
Generally agree with the anti-guessing sentiment but I love the positive outlook.
I would also argue that many "old hands" or chartists did not see $0.69 coming either. Well if they did they didn't tell anyone.
Chartists (and I have nothing against whatever method you choose to use) are no more qualified to suggest what a price might next week be than a tarot card reader.
Insofar as I can see (and nothing exists that I am aware of to disprove my view) SGH is a very sound company. Financial guidance has been affirmed - a proposed law in the UK might have some limited impact on a part of group earnings. However, the law is proposed and the passage of legislation is never an easy matter - particularly tort reform. Torts law is the area of legal 'wrongs'. It is the body of law plaintiffs use to address the actions of others that they believe has wronged them, or caused them to suffer loss.
Interestingly, much tort law derives from the common law. It is notoriously difficult to alter (substantially at least) the common law. Legislation (other than waiting for a change in the common law / case law) is the only tool available to change aspects of tort law (e.g. personal injury). It only takes a company like SGH to find a good "test" case that has the necessary elements needed to challenge the new legislation, or aspects of it (when it is actually passed) in the Court of Appeal (preeminent court for civil cases). It is not uncommon for the Court of Appeal to read down, or even strike down the legislation, or parts of the legislation on any number of grounds.
I will discontinue the legal lecture on Torts and the Common Law here - suffice to note that the proposed changes are far from being a fait accompli for citizens of the UK. SGH have a history of seeking change in the law. The Hardies and asbestosis cases readily spring to mind as one clear example. This is a legal firm with a successful history of taking on the tough stuff - it is not you 'corner legal store' doing conveyancing and inheritance law work.
If, the finances are as they have been portrayed, and the ASIC issue is relatively minor (I suggest that if it were a serious issue it would have been flagged by now) then little else appears to have changed since the SP was around $7.00 - well nothing other than sentiment and sentiment, I have noticed, tends to follow the dollars - in the end.
If SGH achieve the financial guidance targets then I am pretty sure I know where the sentiment (and dollars) will flow to.
Have a good weekend folks - and I suggest we leave tort reform to the experts
Most brokers I know would struggle to spell, 'tort' and they would have very little success explaining its relevance to others. And yet they set price targets on company that lives and breathes tort law - sheesh
SGH Price at posting:
$1.13 Sentiment: Buy Disclosure: Held
(20min delay)