SGH (ASX) I am back. So is SGH

Originally posted by Successwillcome ↑

Tumble/Voost

Can you please provide of couple of links with all your comments this morning so we can check for accuracy?

Or have you just provided your opinions? If so please in future state they just are your opinions.

I have asked you a few questions below so we can get your take on those.

What is your sophisticated take on the comments (conflicts of interests) that Slater and Gordon apparently made in relation to the class action from Maurice Blackburn.

1. Do you think that conflicts of interests is an issue real or perceived (ie major competitor)?

https://www.lawsociety.com.au/commu...ationship/Solicitorsdutiestoclients/index.htm
Conflicts of interest

Your solicitor must not allow their own interests, or the interests of an associate, to conflict with those of a client. A solicitor generally cannot act for you if they have previously provided legal advice to a person you are in dispute with. If you believe that your solicitor may have a conflict you should raise this with them.

2. Do you think that if indeed Slater and Gordon bought Quindell through misrepresentation that this in any shape or form will weaken MBs CA against Slater and Gordon?

3. Do you think that estimated future discounted cash flows in any shape or form affects the current value of Slater and Gordon (or do you think that book value is the current value of Slater and Gordon)?

Thanks Tumble/Voost

Expand

I don't have opinions on any of that stuff because I don't feel it has any importance right now. For the most part it is just noise.

SGH took on too much debt. They couldn't service the debt. The banks sold it over to Anchorage and now the fate of the company is in their hands. It doesn't get simpler than that.

If it were not for Anchorage buying the debt for 25%, then the banks could have put SGH into administration. Anchorage could still do this now.

Understand who is in control now. It is no longer equity holders.

Any value that is left in SGH will be engineered to go to Anchorage. As current equity holders worth only $35m you don't offer anything to them going forward. This is especially true given most insto's have long left the stock.

Anchorage just provided a loan for more than the equity market cap. They didn't seek to raise equity capital from current holders, they didn't seek to make an equity contribution and take an equity stake. What does this tell you?

Current holders will be left behind. It is already too late. Enjoy your dead cat bounce because this will keep falling.