Maybe to early to make all line conclusions..But few for sure we...

Maybe to early to make all line conclusions..But few for sure we can.

Who pays the bills ?

The Co (Sgh) engage an "serious" audit company that put their seal in an acquisition that day after day looks more ugly and absolutely wrong.
Their payment will be reversed as result of "nihil" usage ?

The Co (sgh) paid to hundreds solicitors read the process and give their views if the "rate of chances to be winner cases" are according with the expectations. Result ? Completely different than.
They will be fired and deducted the wage (and secondary expenses) they generate to give wrong advise ?

The CEO several times went to market to give a guidance. he gave wrong guidance. Why they want keep the man ? is a premium for bad performance ?
Aside of resign he could have an amazing act of dignity at least renouncing the wages from 1 year ago upto next election. He will? Of course not...Means we all "pay" the wage of a professional with really poor skills of judgment to lead a so shake boat.

Asic went all way (about one year) giving zero guidance and leaving the market tense and concern. Suddenly they came and shot their views.

In the end of the day, some lessons we can take from.

a) Trust is a matter of faith.
b) Companies are managed by people that not always are prepared for the steps they take
c) "team" and "sub-contractors" can be the ones that help and support you, commit the mistake more calmly.
d) SGH is a company in the edge but the announcements that should come every week showing the cuts,will be in one single one.
While that doesn't happen the share drops to "rubbish/undergod" value.

As soon one Bank take SGH from assets and trow to junk, the current prices will be again smashed.

The Lesson is:

A company amazing and fantastic like SGH 1 year ago, become nothing as result of greedy and wrong assumption they "can all".

No they cant

Cato