Interesting or sloppy?, page-41

You really don't get it Piggywig.   It isn't really just one negative H1 if cash flow is fueled on insane levels of debt and less than accurate balance sheets. They are not nine months into growth by acquisition, they are some years into it.  What's more SP growth has been carried along by the appearance of rapidly improving financial viability built on aggressive acquisition and exponentially increased debt level all the while being led on a merry dance by a management structure (with the exception of Houghton and Miller) with no demonstrated capacity to actually integrate business models as opposed to just borrowing money to buy more of them and (for me personally) an apparent unwillingness to embrace transparency.

Problem no 1 - the current management structure .  Besides the credibility issue they have done nothing to suggest they are capable of fixing the mess they find themselves in.   The banks can't roll the BOD but I bet they have an itchy trigger finger and see the current board as an issue and would prefer a decisive change at the top.

Problem no 2 - the debt level.   If debt level is significantly greater than assets and capital (that includes SH equity BTW) and the company itself is unwilling or incapable of making wholesale changes that the creditors want to see and the lending covenant is breached then the creditors (i.e. the bank) can take matters into their own hands.  They could deem that as the total equity is worth less than the total debt then therefore the stock is effectively worth less than zero and in effect worthless.  The banks and their appointed administrators take over the company and SH are left with nothing.

Personally I think that SGH will survive, don't know who will own it - probably SH still, but doubt very much it will reclaim former glory as that now appears to have been a house of cards all along.   The flip side of that is that at current levels the SP is seemingly cheap and if there is a changing of the guard which the creditors have faith in then it may well become invest worthy again.  Til then it is a trading stock only IMO and that isn't my game so I'm out.