Denbo is right as regards M/B class action , could well spell the end for SGH if it proves successful the millions in damages the law firm is after , SGH bank lenders for a start would take a dim view of the huge extra financial burden for the company and see it as further risk recovering their money lent to SGH . I can't see the average share investors getting much return on their losses by the time the law suit underwriters , liquidators , banks and the large broking houses , Lawyers Maurice Blackman and so on take as much as they possibly can from the settlement amount and the average ordinary shareholders supporting the class action will get whats left of the settlement , in other words shafted . I feel with help from the relentless bad press and constant bagging from the large broking house institutional brokers who seem hell bent on seeing SGH fail , pick up whats left and take full tax advantage as professional share market traders of writing off all or most of their losses made against their large share trading profits and come out of this situation quite well . Banks for example made huge losses in the late eighties (Aust. decade recession) were able to wrote off their losses later only because of their enormous profit making capabilities when Australia recovered from that deep recession . It is not in the interest of high earning broking houses and so on to let SGH slowly recover over time it would work much better for them to see SGH fail , but for the ordinary average share holder still holding shares more financial damage done and the inevitable bad press headlines that would follow would be the real losers . This is my honest opinion only as regards class action .
SGH Price at posting:
38.5¢ Sentiment: Hold Disclosure: Held
