SGH (ASX) I am back. So is SGH

Originally posted by Krispytech ↑

What do U think market is going to do if
the debt holders agree
to swap 500 million debt to swap into convertible bonds/warrants 2-3 years out at 20 % discount to market price of SGH at that time.
Many many amazing possibilities of creative financial engineering there.
All the selling that has come from 14 cents down to 11 is on v little volume and profit takes.
LT holders that are left seem to be digging in as they know SGH is not getting delisted and not going under and even fresh capital from lenders is coming.
Even talk of CA being settled with insurance claim of 100 million.
SGH can be totally totally derisked .
All they need to do after this is focus on the workings of its business.

Equating BV of a distressed company to market price shows misunderstanding

of markets and true value of a listed company.

I wish it was so simple.

Then how easy investing would be.
Oh well call the broker and tell him to buy all my named stocks at BV.
EASY.
All done.
Negative messages increasing as SGH has not given back its gains and those whoare out or have taken profit or are short are getting restless.
Interesting times.

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Few facts to rememebr/refresh.
SGH was 40 cents the day before MB filed CA in the court.
Fall below 10 cents was caused by the barrister's group in VIC sending a letter to its members.
SGH has bounced from 6.5 to 14 cents on 63 million volume ,its highest volume on an up day ever i think on the news that
it will remain
solvent,new lenders apart from giving special incentives to staff, will inject funds to stabilise operations.
This move down from 14 cents to 12 cents has come on miniscule volume and can be just minor profit taking unlike in the past when SGH has quickly given back all
its gains.
It appears new lenders see value in SGH and good future in its stock performance as well.
It is very unlikely under this scenario that there will B any massive dilution to the
degree
that is being
floated around
by all the well wishers of SGH and its long suffering shareholders as the intrinsic value of SGH as a compabny and its stock is still pretty high
as discussed in my previous messages which i think is the reason of new lenders coming in at this juncture.
Market seems to agree with this view so far.
Looks like remaining LT holders diggin in for the final ANN that will certainly make history.