Hedge with SHJ, page-6

Hey chino,

You are right, there wont be any acquisition until at least late of next year or FY 18. A lot of business internal structures need to be readdress right now, these two years are the fix up years. Which should help in restablishing value for both lenders and investors. There are also two critical reasons why I think they shouldn't spend anymore as well:

1. Debt Principle Repayment, simple to understand - not simple to do with the current liquidity index of approximately 400 days.

2. Depleting organic growth. Right now SGH is dependent upon acquisition growth which is very dangerous as it needs to prove that as a firm right now, it is offering customer a discount conglomerate value from recent purchases. However to prove this it needs to fix up all of its excessive OPEX which will take a year or so to review and revert back to an efficient level, and that it needs to prove that these assets listing of extra earnings/cash flow from purchasing businesses can be sustain over the year and not just a blank sheet of paper. If it can just focus on these for the next two years, the price tage of $8 dollars before will be justified.

Hope this adds something to your perspective,

Robert