Even though the share price has been absolutely savaged in the...

First 5 Last

Share
Profile

Follow
musky45

2,122 Posts.

282

02/12/15

20:41

Post #: 16533293
Share

Originally posted by showmethe$$$ ↑

I've been obsessing over SGH the past couple of days, trying to figure out why people are hesitating over buying...

There are two roadblocks I see for SGH;

1) The ASIC Investigation
- Very unlikely to impact the company. The investigation (from what I understand) is looking into how they were classifying assets on their balance sheet and should not impact profit. Management have already taken positive steps to address this (correcting accounting policies & appointing a new CFO).

2) The newly introduced cap for UK claims
- Yes, it is an unfortunate event that will impact profits and I can see how this may cause fear in relation to their increased debt load, however the company's cash flows are still strong and the overall business is definitely enough to stay afloat. (see screenshot from IBIS Research).

Of course, I understand the share price is riddled with short traders and other "bad guys" but this shouldn't prevent anyone from buying at this price?

I see fields of green once this ASIC investigation is finalised.

Please let me know if I've missed something here, any feedback is much appreciated.

Expand

Even though the share price has been absolutely savaged in the last week, i'm still convinced of the merit of my original investment case. (which was formed at well over double the current SP) Thats why i still hold.

SGH Price at posting: $1.27 Sentiment: Buy Disclosure: Held
15 Upvote

0 Great analysis

Reply

Top Stories

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

CMX

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Microcap Wrap: 5 explorers with news out today

RCE

Recce's R327 found effective against E.coli during clinical trial

AVA

Ava Risk Group expands US presence with A$0.7M Substation Deal

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

LU7

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

LRV

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

SVL

Silver Mines models five new calderas close to 396Moz Bowdens deposit