OK Excellent. Let's go through my "false and skewed opinions" one at a time then shall we?
I encourage you to please let everyone know precisely which of the "opinions" I have expressed is
NOT a fact:
You know what... I'll even put my money where my mouth is.
I will donate $100 to the Royal Childrens Hospital Good Friday appeal for every single one of my "opinions" below you prove wrong.
FACT 1. Debt exceeds equity. Current shareholders own -$0.38 per share of SGH
Source: SGH published financials here:
http://www.asx.com.au/asxpdf/20170227/pdf/43gbm9xw2cylwn.pdf
I calculated it at negative $0.38c per share equity however it seems I was being generous...
The company actually calculate it to be even lower:
View attachment 546702
Fact 2: SGH Management stated that SGH REQUIRE lender support
Source:
http://www.asx.com.au/asxpdf/20170331/pdf/43h5yr5qkwsnnb.pdf
View attachment 546723
Fact 3: The idea that debt-for-equity will be done on discounted cash flow based on future imagined profits and will not be done at $0.11 is only YOUR opinion - and not an actual fact.
Source: Your continuous posts here on HotCopper. Unless you are now claiming that you actually KNOW FOR A FACT how debt-for-equity is being calculated in these negotiations. Are you personally involved in the discussions??
Sub-fact: You reach your conclusion for debt-for-equity based on assumptions for revenue, profit, margins and risk premium for the lenders.
Source: Maths. It is
mathematically impossible to come up with a number that is NOT the current market cap without making an assumption for one or more of these variables.
It is also clearly apparent that you are making extraordinarily heroic assumptions here without any justification whatsoever to reach your favoured $3 per share valuation. Given you have never provided any justification for your $3 per share figure except for a vague "we did $900M once and margins used to be higher", I am happy to call this a FACT until you provide a rational basis for your figures.
FACT 4: The company recently recapitalised $32M in interest payments and took a $40M further cash injection (disproving your claim that no cash injection had been needed in the past 12 months).
Source: SGH published announcement here:
http://www.asx.com.au/asxpdf/20170331/pdf/43h5yr5qkwsnnb.pdf
View attachment 546738
FACT 5: In spite of turnaround, cashflow remains negative. Company is still unprofitable.
Source: SGH published financials here:
http://www.asx.com.au/asxpdf/20170227/pdf/43gbmcq5zq8kdw.pdf
View attachment 546729
Note: "Normalised" profit achieved through $9.2M tax refund.
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Grant and I do not know each other - I cannot make this any clearer. By all means ask the mods to check our IP addresses to confirm that we are not posting from the same sweat shop.
Your constant attempts to distract by undermining the credibility and motives of other posters speaks volumes about the weakness of your argument. If you were sure of your facts, you would simply argue the facts on merit.
I will note here that you seem intimately familiar with how these sorts of pay-for-post arrangements work...
Take all the surveys you like about posting on HotCopper. Seems to be the best use of your time. Might I suggest augmenting your survey with a column comparing the number of posts containing links to published ASX announcements and actual source documents from proper research vs posts containing "facts", assumptions and figures pulled from thin air.
This might highlight how close to the "facts" each "side" of this debate is...
Nothing I would love more than to donate $500 to the Royal Childrens Hospital on behalf of "SuccessWillCome on HotCopper".
Over to you champ...
