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SGH

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54.5¢ slater & gordon limited

Thanks mike, that is better, appreciate a constructive...

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Dr.Who

4,679 Posts.

145

22/10/16

12:27

Post #: 20049401
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Originally posted by mike8654 ↑

Certainly.

1. what is the upside that convinces you to hold the stock?

The same upside as you have stated (it's one of the few things we agree on). You make an investment decision based on today's price and what return you believe you can make in your target time frame.
I was a bear on the stock until early April and made no secret of that. I made a post in April saying I was going long and I did.
I made another post in early Sept saying what my expectation was and why - 70% chance of survival in current form, and if it survives, maybe EPS of 10 or 11 cents for FY 2017.
I discount NIHL completely. If they get more than a few million back it's a bonus.
I categorise SGH as a recovery stock - it's less than 3% of my Aust portfolio.

2. I consider a return of sorts from NIHL as crucial to reducing the debt (off balance sheet straight to bottom line) as you doubt there is revenue to come form NIHL how do you think S&G will settle the 'bridging loan'?

SGH has zero chance of repaying $350M (or whatever figure it is) by due date in 2018 from its own cash flow.
If moderate profits return, the pressure from the banks will ease, and there is the possibility the banks will roll the loans over for another 2 years.
If profits don't return in a meaningful way the banks first option will likely be to force a sale of SGS, if it's a going concern and a buyer can be found.
Either way, unlikely I will still be long by start of 2018.

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Thanks mike, that is better, appreciate a constructive discussion ratchet than ridicule.

While we differ at least you do offer a form of analysis rather than the alternative moaning nil-content get it off chest type comments from some others.

I have plenty to say on your assertions. Not knocking them afterall everything is just opinions when faced with uncertainty and everything in life is uncertain.

In my opinion there are obvious contradictions in your brief summary that I will address those later.

SGH Price at posting: 38.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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