There is defiantly a positive scenario here, its just a matter of what the starting point is.
- Gretch now doubt knows the banks are screwed in an external administration scenario and can hang on
- Headcount will be reducing faster and faster (rats (lawyers??) leaving a sinking ship) which means cost reform is being done automatically.
- Maybe panicky clients wanting to transfer their files will be forced to 'pay their bills' which reduces receivables and means little room for impairment
- Eventually management will be cleaned out by the debt holders
Current market cap is about $114m - I'm certain there are cheaper 'option' trades out there than this, but maybe not one with the revenue that S&G has. Though it does feel like the market cap should be about $20m or so before you go 'option' long.
That said, I'm new at this, so shoot me down in flames.
So...wait......or maybe camp outside S&Gs offices waiting for the board meeting where the executive get rolled.
SGH Price at posting:
33.0¢ Sentiment: None Disclosure: Not Held
