Reality, page-9

Panicked sellers? The volume tells me the Instos just pushed the sell button. Maybe some retail punters got caught in the frenzy and bailed as well. Not quite sure to make of the shj announcement. Shj did the rounds in Oct, while not shooting the lights out with their commentary it was still upbeat. No more than 3 months later a downgrade. While the update was quite a few pages in length I thought it lacked detail. If you are going to writedown wip I think a bit more detail on how exactly is calculated would have been helpful . Is it so hard to group cases by value, quote probabilities of success. I think we are capable of digesting that sort of detail . If spilling the beans was meant to create credibility I daresay they lost the Instos on day one. 10 million hit to profits while broken up into smaller bits was helpful but hardly explained why this was not apparent earlier. Whether this was a clearing of decks before an assault on a weakened competitor is yet to be seen. Sgh's weakness is its trade creditors. Credit is more likely to be extended to shj rather than Sgh. That is a powerful dynamic. The other thing and it may well have been pointed out , the 17 million reduction in wip is one off in nature. Essentially an overstatement of prior years profits. Shj talk of intense competition in Queensland, Sgh have been outspending shj 2 to 1 per dollar of revenue. it will be interesting to see this slugfest unfold.