Worst outcome is company bankruptcy and voluntary...

Worst outcome is company bankruptcy and voluntary administration.

SGR issued shares twice at 1.2 and 0.6 to enhance its balance sheet to avoid this worst outcome and it worked.. so far. Bad thing is the significantly increased share numbers are making shorting even easier and SHs deeply under water formed strong resistance that block SP recovery and detrimental to future valuation.


SGR has been pretty tough compare to Crown, did everything it could to survive this vicious shenanigans, proved itself not an easy prey. Unfortunately this attitude also made the predators bite even harder, hence the freak show we are witnessing- prolonged inquiries with extensions one after another, former management waged war against the regulators, the Damocles Sowrd aka pending Austrac fine, orchestrated media attacks all these are to creat maximum uncertainties and bearishness..the message is clear- touch it at your own peril.

I see it as a text book contrarian investment opportunity with high odds, however the road forward will be rough and circuitous. Also be careful with the conventional opinion that there will be no offer before the dust settles, I mean, they smashed SGR all the way down but only to throw an offer when SP recovers? Or would they rather bankrupt it but who will be the scapegoat for all the chaos and jobs loss? A sensible SH should be asking him/herself these questions now.

NFA DYOR