SGH (ASX) SGH bear is dead and burried

Originally posted by OptiontraderMGR ↑

Well Well, what can we say about the events that are unfolding before us! It’s like a nightmare on Elm Street gone wrong.

For all the Bulls out there in the WWW of H.C, we would like to take this opportunity to asked for your advice, and in doing so, we hope that the very reason why some shareholders got into this pickle can go back to basics with answers to why they purchased shares in SGH in the first place and is the entry conditions as to why, still prevail in today’s environment?

If you can honestly answer yes, then accept it for what it is.

If you can honestly answer no, then make that unemotional decision which you accepted when you entered the fray.

Question: When making an informed decision to buy into XYZ Company, what are your criteria from Fundamental and Technical position?
For example:

Is the company the leader in its field?

Is the company financially stable?

Is the company’s management well respected by the business community?

Is the company making good profit from its last report to shareholders?

Is the company code of ethics of high importance?

Is the company’s relationship with its shareholders strong?

Is there any negative news in the media, which requires investigating before buying shares?

Is the economy strong, and share price on chart in strong upward trend?

Do you understand this business, and what to look out for if circumstances change?

How much can I afford to lose if I get all the above wrong?

DYOR
Good Luck

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Is the company the leader in its field?

Is the company’s relationship with its shareholders strong?

Is the economy strong, and share price on chart in strong upward trend?

Is the company code of ethics of high importance

Is the company making good profit from its last report to shareholders?

Is the company’s management well respected by the business community?

No doubt these are all great questions IN GENERAL for buying a stock, however this is not an ordinary stock, it's a hopeful turnaround story priced for failure.

"why they purchased shares in SGH in the first place and is the entry conditions as to why, still prevail in today’s environment?"

This question is also irrelevant. The question is not whether it was a good buy a year and a half ago or not, it is whether it is now. I'm not paying $3 for these like I did 4 years ago, but nor does that mean the stocks are currently worth 23.5 cents or less.

The question at this point is "Were the financials decimated to the point where a turnaround is impossible without mass dilution and in that case, the stock is worth less than 23.5 cents?" to which my answer is still, no.