Hi all,
I am a first time poster in Australia, but have been reading all posts related to SGH recently. My sentiment is buy & hold, and for at least 1 year (for Capital Gains Tax reasons).
I agrees with Walkingeagle, Mel and Yensog’s logic and sentiment, I put 100% of my $50k SMSF in SGH at price of 0.24.
Call me crazy and aggressive, but if you are sure that this investment yields the highest return, why would you want to invest elsewhere which yields lower returns? From a risk perspective, where the stock price is at now, the buyers actually have a large margin of safety. A very rough estimate of the value of the business per share I have used is net asset / no. of shares approx. =$1. This qualifies the share as a bargain share, as current price is <30% of the absolute bare minimum valuation of the business. (And I can include intangibles in the calculation, because it’s been written down the bare minimum, if you know your accounting standards and you know your finance formulas you can work backwards and calculate the expected “value in use” each year, which is very low and reasonable for the size and market share for the likes of SGS, not to mention strategic benefits from the SGS purchase, and that intangibles in profitable Aus and UK segment have also been written down – this supports the view the Houghton has done this to the severe degree to “clean the deck”).
To be honest, I do get frustrate when there is large down movement with large volume, and my gut feeling tells me that there is possibility of leaks of bad news, and I start looking for any new ANN and chase after shadows. But so far, other than shorter punts & frustrated/scared sale from holders, which caused the downward price movement, I have not seen anything that justified the recent fall to $0.21.
Further falls of the stock price presents buy opportunities if you truly believe the fundamentals of the business. And I am not in for a punt, there are solid reasons why I think the company is worth more per share, than its current quoted price (learnt from this forum, and from my own research, and assessments). If you are interested, we can discuss this in detail… but for now… I need to get back to work, and my night time isn’t all that free, as I am helping my missus preparing her CPA, and my own study… that is after I have put my two year old to bed around 9-10ish. >.<.
Expand
