I did tell myself not to read the Sgh posts this weekend . But...

I did tell myself not to read the Sgh posts this weekend . But you know it's just about the bottom when you see these comments, sure you don't want to be holding when you see the administrator called in. I might say I held idc Newsat vet at a stage prior to the curtains but never on the last day of trading. Let's just look at a couple of things. Firstly asic issue, dare I say with Sgh trading at 69 cents the asic issue is totally erelevant. Any thing they had to say was never going to be material , I would be very surprised they would have anyone at asic that could understand the Sgh model let alone determine if Slater and Gordon fudged anything. . Key people own significant stakes There interests are aligned to long term shareholder value, so nobody feeling more pain than those key stakeholders, and the lawyers that participated in the rights issue in April.
Let's just think about the issue of the bank. Sure the "unexpected " announcement might cause a flutter. But all of these issues were in the public domain prior to the announcement. Slater and Gordon has dealt with regulatory change all its history. Any changes in the UK while it might cause pain Sgh will adjust and cycle on. They have clear evidence that things revert to mean over time.
While lifting the small claims from 1000 to 5000 is a change do we really think that there will be 800000 Brits clogging up the courts. If that was the easy alternative it would be occuring now at the 1000 pound limit.
Sure covenants are important , we don't know what they are so its probably best not speculating on them suffice to say 100 million free ash flow while not could would not cause the bank to move. Sgh is guiding for 200 , I think that's a stretch but I am guessing , Andrew has evidence. Sgh will survive. Whether the lows are in that's almost immaterial. The shorts don't matter, they have left during the week. Why would you they hold now the odds of them making money from here is low.
Just have to wait for the last of the panic selling to wash through.