We are writing 2017 my friend and to achieve results you don't cut the branch you are sitting on (ie why would Achorage NY destroy SGH if they want SGH to pay its meals?)
Furthermore company value is worked out on discounted estimated future cash flows. Useful in any D4E situation one would think
Listen to this one.
We have been told by some that hedge funds will do us harm.
Did those posters provide evidence with this? No
Research shows the opposite is more likely.
Hedge funds may actually help the current shareholders.
Why? Because we are on the same page. We both (hedge funds and current shareholders) want a successful company and an increased share price.
How do I know that?
https://www0.gsb.columbia.edu/mygsb/faculty/research/pubfiles/4128/Hedge fund activism Final.pdf
‘The presence of these hedge funds and their potential for intervention exert a disciplinary pressure on the management of public firms to make shareholder value a priority.’
Earlier studies show that when institutional investors, particularly mutual funds and pension funds, follow an activist agenda, they do not achieve significant benefits for shareholders (Karpoff (2001), Romano (2001), Black (1998), and Gillan and Starks (2007)). Our results suggest that the opposite is true of hedge funds. Unlike mutual funds and pension funds, hedge funds are able to influence corporate boards and managements due to key differences arising from their different organizational form and the incentives that they face. Hedge funds employ highly incentivized managers who manage large unregulated pools of capital. Because they are not subject to regulation that governs mutual funds and pension funds, they can hold highly concentrated positions in small numbers of companies, and use leverage and derivatives to extend their reach. Hedge fund managers also suffer few conflicts of interest because they are not beholden to the management of the firms whose shares they hold. In sum, hedge funds are better positioned to act as informed monitors than other institutional investors.
It is a long article but worth the read in my opinion.
Achorage NY could be our friend because they will advise management to get their act together to make this company great again. Meant in a good way.
It appears they have already started the process by letting us complete and embed the restructuring and performance improvement plans. They do that because they believe in SGH.
Successful company = rising share price.
My tip for the day:
If anyone post something or have a statement or opinion to provide ask for verification.
All in my opinion.
Substance is the keyword.
You will know what I mean
