There is one big big flaw in the markets behaviour and pricing...

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TechnicalsSayItAll

1,296 Posts.

01/03/16

16:02

Post #: 17156956
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Originally posted by TechnicalsSayItAll ↑

My logic is the same.
It is a law firm. It has 1 billion dollars revenue. It can be made to deliver 25-30% margins from where ever it is today.
The question is , is the management capable to do that. Answer is no. However with the help of banking syndicate and FTI consultants that is happening.
The other issue is , is AG telling that second half will be better true.
If these things happen they have the company right sized, it will all come good.
In the 1 H report the actions they have mentioned is many and one of them is capital restructuring. Now that is a big word and can have lost of meanings.
We dont know what they have actually planned in capital restructuring. I think banks are going to convert some loans into equity. If that gets the support guaranteed and we get the SGH restructuring and OPEX cuts and all NHIL and 2H cash coming falls in place, SGH can blossom again in a v v short time.
Till that happens it is all up in the air and there is no trust in the management. But now BANKS R THE MANAGEMENT not the BOD OF SGH. They R just the rubber stamps.

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There is one big big flaw in the markets behaviour and pricing SGH stock to 35 cents from 810 cents.
Market has yet not seen even one card re financial re enegineering, SGH restructuring, OPEX cuts being played by SGH.
Amazing.
What will and can happen when SGH deals just one hand of beautiful finacial rengineering with OPEX CUTS and restructiuring of SGH.
Stay tuned. for my gut feel.

SGH Price at posting: 32.5¢ Sentiment: Hold Disclosure: Held
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