Was at the AGM. Mgmt was very "steady". Mood was somewhat...

Was at the AGM. Mgmt was very "steady". Mood was somewhat disappointing (IMO because the SP had already tanked beforehand due to the -$40m cashflow shortfall which was questioned by professional investors right away).

My 2c worth:
- Grech said SGH is "building a business". - This is somewhat different to the business model of simply growing by rolling up small fry.  May not be fully appreciated by investors. Leaves door open to doubters - Jury is obviously still out on whether mgmt can deliver? This increases the risk but also potentially the rewards if SGH gets it right. Qn is - how long will this take? Ans - Need to adjust time horizons to at least FY2016 and judge then.
- Grech/Skippen both stated that there was nothing that SGH could do to address shorters in the short term other than focus on the business and prove them wrong. They said that shareholders could approach the regulator and complain about this as its only the Regulator who can act. I am disappointed here as I feel that there is something that the mgmt could do more. They could beef-up investor relations; get on a front foot offensive and approach institutions through roadshows etc and educate them more into the uniqueness of their business. The key here is to change sentiment and build institutional stakeholder alignment and alliances. This might also help discourage the practice of institutional  lending out of its stock.
- SGH will beef up mgmt further with a senior UK appointment.

The Bottom Line - At current SP I am happy to hold and buy more as funds accrue and remain positive on SGH's future. Only naturally disappointed given all of the pre-AGM hyperbola and the mid morning shellacking the SP was given.