Those who are new to the thread may not know that share price dropped to this level because many thought that the banking syndicate would call in the debt early and company would go to administration. Otherwise do you think SP would be 25 cents of a profit making, dividend paying (except H1-2015) company that earns more than $1 billion revenue per annum? Recent media reports suggest that banking syndicate may have decided to support the company.
Meanwhile, Ernest & Young has signed off UK division accounts of the company on 31 March 2016 citing there points. The first point of their list was "consideration to the current financial forecasts for the group". This is really good news because it is the first indicator of H2 performance of the company. As you may know, company decided not to provide business update or H2 forecasts due to the uncertainty prevailed at that time. Although the market has not seen company’s financial forecasts for H2, E&Y has seen it and they are happy with it. In my view, contrary to last few occasions, only people who are going to get disappointed with the incoming announcement are shorters and those who have sold shares and not those who hold shares. If you want to see links to above media reports on the above, you may refer to my earlier posts.
SGH Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
