I still see Fidelity as a large institutional investor - they...

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cung9263

133 Posts.

20/06/17

11:46

Post #: 25376886
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Originally posted by HK1 ↑

A thoughtful reply. I understand your position and maybe I am being too optimistic, but being burnt by previous experience of trusting management and trying to look at the upside has made be cautious. I too have investments that are would be considered risky and acknowledging the facts is an important part of that. I think you have a reasonable grasp on SGH and understand where things are at.

I would like to correct you on this though. The share price when from 27c to 18c on the Market Update of 16 February. This update was not really inline with what was said at the November AGM and it was not inline with market expectations as all. Everyone after the AGM was looking for some positive "turnaround" news, but this update didn't provide it.

Then the full H1 results came out on 27 February and the full picture was not pretty - yes, an improvement over the previous period, but no where near good enough and the share price was again punished to 10c.

The writing was on the wall for SGH - it has debt problems, negative cashflow and the negotiations with the banks had not produced anything. On 17 March an update was released where the New Senior Lenders were announced and "binding agreements to reset debt structure" were announced. This actually improved the share price a little.

These D4E negotiations have dragged on for much longer than anyone would have anticipated, I think. Maybe it has been made more complex by the fact that there are no large institutional investors, or that there are lawsuits for and against the company, or that the business is still going through transitions so it is difficult to get a real picture. I guess that when it finally happens, SGH will change and we can all reassess our positions.

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I still see Fidelity as a large institutional investor - they hold the largest %...anyways onwards to the results!

Anyways on these announcements this morning...didn't asic look through their books twice and on how they recognised items and found nothing?

Last edited by cung9263: 20/06/17

SGH Price at posting: 10.0¢ Sentiment: None Disclosure: Not Held
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