Long Position, page-132

Hi OptiontraderMGR

Great post.

My logic in staying with SGH is that I see it generating about a $bill p.a. right now in fees - and reason that, if it can control costs it should start making a profit soon - even as early as next year - and that income will likely increase as the UK market is exploited more.

Added to that, it appears to be making some progress in UK market which should only get better as time goes on.

Additionally, it has a solid business here in Aus - which has, and will continue to, support it during these tricky times.

Then - I see 'traditional' markets in a shaky position right now. No-one really knows what the Don is going to get up to next 12 months or how it's going to affect other industries - which kind of enhances businesses that don't rely on world economies to go local business.

Lastly - taking all the above into consideration, I see the long-term prospects for SGH as quite good. Certainly good enough for me to hang on to my holding, rather than actually take the guarantee of the massive hit that would occur if I sold.

And, I might add, I'm not adverse to taking that hit if I think it necessary to preserve what's left - but, given my above reasoning, I'm not sure I need to.

You're right, share trading isn't for nervous nellies - and if you are one you shouldn't do it and certainly shouldn't keep whingeing if you choose to and you screw up.

Any comment?