I agree. The plan to sue is disturbing, especially if you are a...

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Gekkowolf

2,453 Posts.

242

03/10/16

07:40

Post #: 19572587
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Originally posted by Melrosian ↑

I too am flummoxed by directors throw of the dice. It does suggest there is a problem and the detail will be "interesting".

However I built a large ( for me) holding since mid January and I am close to break even and had expected some light at the end of the tunnel in Feb 17. I looked at SGH in June 15 and rejected the idea of investing.
The gearing was obviously going to lead to mass walkout by institutional holders and many of those would obviously be trying to make up losses from the placing by taking part in the shorting open goal. The directors and their expensive advisors must have known what would happen post placing. A 15% shrink in new case take on seemed likely and the gearing level is obviously toxic.

Of course they always overdo it and what goes down goes up - but first light is needed. If there isn't any it will go wrong.

I just happen to believe there will be light sometime :

1. I think it unlikely that NIHL cases wont be settled sometime and at least cover the WIP on the books. That is going to help reduce gearing....sometime.
2. I would be surprised if a 9 fig PAT future doesn't emerge sometime. It will be nice then the accounting standards and policies are consistent for a year.

Once you have done what I have done it is a matter of patience and keeping the faith. The trouble is the plan to sue is disturbing .

Mel

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I agree. The plan to sue is disturbing, especially if you are a WTG shareholder......

SGH Price at posting: 37.5¢ Sentiment: Hold Disclosure: Held
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