Yes, I'm looking at SGH as a long term investment. IMO SP is...

Yes, I'm looking at SGH as a long term investment. IMO SP is undervalued having regard to SGH's PI brand and cash flow. In the immediate future, they need to get the syndicate under control, trim a lot of fat and streamline the business (inlcuding the UK limb). I think it will ulitmately return to a low debt and high cashflow business. Once this is acheived, ROI will be significant.

I'm aware of the risk of SGH going bust but it doesn't worry me enough to cash out. IMO it doesn't seem like a smart move for the syndicate...SGH is a professional services business with no real assets, therefore nothing to gain from seeing it go down. Further the banks are already dealing with the losses of Dick Smith and the like, I don't think they want another big loss in SGH.