I can't believe that the company would organise an analyst tour to the UK unless they have a good story to tell them. We should also be mindful that SGH is currently reorganising the SGS business to reduce costs by using shared software and shared premises where possible. These kind of changes can have a significant benefit in the second year of operations. Quite often there are unavoidable restructuring costs in bringing about long term efficiencies. Typical costs are redundancies and lease cancellation costs.
I agree with other posters that this company should be the most compelling buy on the ASX 200 right now. I have now bought on three occasions in the past few weeks as I firmly believe there is no value ascribed to the Quindrell business and refuse to believe it would have been purchased if that was the case. Our Chairman of the board is a Chartered Accountant and I am confident that he would have ensured that the due diligence process was done professionally.
Screaming buy IMHO
Chrs W2
SGH Price at posting:
$2.88 Sentiment: Buy Disclosure: Held
