SGH 0.00% 54.5¢ slater & gordon limited

Hi Tim Exactly as you say, if a company needs capital for a...

  1. 3,147 Posts.
    Hi Tim

    Exactly as you say, if a company needs capital for a variety of reasons and the SP is depressed it less likely to be successful in raising capital. If it is successful in raising capital it will be very expensive relative to what it would have been if shorting had not depressed the SP 9as in more of the company need sot be given up to attract the same value of required capital).

    So, while a company is not directly impacted by shorters it is indirectly through expensive or failed capital raising, and to a lesser of importance, company remuneration structures are impacted that could influence motivation and direction of a company. Many spin off factors of shorting have the potential to ruin a company.

    Regarding my name, it goes back to a rebellious teenage years, look up Joseph and Poland.
 
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