Risks mitigated - what are you afraid of? SGR is a black friday bargain, page-4

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Aviza2913

975 Posts.

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23/11/23

13:24

Post #: 71067636
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Originally posted by AlganonAU: ↑

The SGR risks are being dealt with.

Consider the risks a few monrths ago - the debt risk is now resolved, the NSW tax risk is now resolved. A staged opening timeframe for Queens Wharf Brisbane (QWB) is announced. the Treasury buildings are for sale. The Gold Coast resort interest was sold. The hard assets are still there. the revenues are back to pre-covid levels.

The notable remaining risks include:

1. How big is the austrac fine.
2. Regaining licence to gamble.
3. Completion of Queens wharf date.

The notable mitigating factors are:
a. judging by peer company austrac fines, i dont estimate the fine to be excessive and compliance is now demonstrated.
b. judging by the internal reforms in SGR i am satisfied the needed changes to regain the gambling licence are underway and likely to pass.
c. the construction dispute isn't likely to prevent the opening of QWB, and if there is a financial impact it will be manageable.

So, of these known risks and known mitigations, I am satisfied the discounted share price more than covers the risks i am accepting for the upside i anticipate - whether by a takeover/aquisition, or by a turnaround.

As an equities investor i am aware of risks and demand the potential reward to compensate me for the risk. For the risk averse here, if you want risk-free path, consider Government bonds. For me, i'm attracted to the likely gainz.

DYOR. Not financial advice. My opinions only. No insider info. Bought more today. accumulating.

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And how about the class actions?

how about the dwindling revenue and increased comp from pubs and clubs and ither entertainment venue?

Biggest for me is Austrac though - it can send SGR back $0.5bn faster than it can raise funds.

SGR Price at posting: 51.5¢ Sentiment: None Disclosure: Held
5 Upvote

2 Great analysis

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Risks mitigated - what are you afraid of? SGR is a black friday bargain, page-4

Shekel Brainweigh investor presentation webinar – the future of retail automation

Perseus Mining boosts stake in Predictive Discovery to 19.9% as latter's flagship project stalls

CBA breaks trading record on strong day for Aussie financials

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Risks mitigated - what are you afraid of? SGR is a black friday bargain, page-4

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