Based on todays news, it appears small claims may make up about 70% of SGS business. So it does appear if this new legislation goes through it would have an impact. How much? the estimates Ive seen are in the vicinity of 50% reduction in earnings for SGH. Lets say 2017 earnings are expected at 100mil. with a current market cap of 250mil, that's a PE of 2.5. Doesn't sound that bad given the current SP. But after all these losses, I am not game enough to buy more, even now. But am still holding.
SGH Price at posting:
68.5¢ Sentiment: None Disclosure: Held
