Every time I point out the error - series errors here - you say "yeah but, there's something I got right".
No, there isn't anything you got right.
The false static WIP assumption destroys even this shred. (WIP has been distorted for many years at SGH due to so many acquisitions and doubts about accounting, not just since Quindell). It wouldn't "be better" to look at dynamic WIP, it is essential even for your trivial gold producer example. For all you know, cash and profit in H1 you use with your "balance sheet" forecasting method resulted from a rundown of WIP! It's like using cash/profit from gold producer H1 where you don't know how much gold stockpiles changed in H1, to forecast H2 cash. You're assuming all the gold new, same assumption @SGH would be the WIP new. Crazy stuff.
Whole separate issue but Australia performed poorly in H1 relative to expectations and margins were down >20% with almost no in growth earnings. Big disappointment too, though at least small profit. How much of Australian compression due all the bad news just getting worse?
SGH Price at posting:
25.0¢ Sentiment: Sell Disclosure: Not Held
