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Originally posted by pmx1
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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). - 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. 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.
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I was good to meet you at AGM. After we spoke I saw Melinda George, S&G investor relations manager. She said she will look into further open days for brokers and fund managers like we spoke about.
