Mike
I am no expert on OZ class actions. However, cant see goodwill write down being good cause , and the directors have reacted quick to GO's, announcement. Nothing much has changed operationally. I am not making the case but there is a case fro saying directors have
overdone the prudence and for sure any cases which settle by June 16 will have higher profit margin.
You may have a point, but imagine the scenario in which bulls like me are more right than wrong.
EG
1. NIHL cases dosh banked $280M and debt below $500m by June 17
2. EBIT $300m yr to June 17.
3. SP uncorks in light of 1 2 above.
Do you really think a class action on a SP fall brought about by events beyond SGH control ( eg GO pointer which probably wont eventuate) and a dollop of extra prudence in a new Accounting Standard is going to stick easily. Suing myself always seemed odd.
SGH pointing at a temporary blip with quick fix wont do SGH case any harm . Then you would have to work out if shorting attack caused a temporary aberation in SGH market value. Then maybe we can have a look at the verisimilitude in posts by those supporting short attacks. For balance , there are lots of ways of hopping.
Mel
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