Hi All,
I've finally decided to create a HC account and join the SGH conversation. For starters, I hold 600,000 + shares - used to be worth a bit; not today (but still hold). Anyway, just want to use this opportunity to offer a few thoughts (in no particular order) - the misinformation and BS on SGH is crazy.
1. According to SGH's investor team (Friday), the debt covenants are 100% not tied to market capitalisation (yes, I spoke to the company investor rep. direct on Friday - as everyone is entitled to do). Not tied to MC.
2. ASIC is not going to issue some big explanation about their SGH analysis; all things being positive, they'll just inform SGH by way of a standard letter that they have concluded their work ... etc. and that they reserve the right to do further analysis ... etc; any other interpretation is likely to be the media re-interpreting the standard letter.
3. FYI, the outgoing CFO's last day is Monday. Personally, I cant see senior managers / executives there with skin in the game leaving - they'll never get another chance make so much money again - ever (once the price recovers). Morale might be low - of course it would be - but it's a long game.
4. I suggested to the SGH investor relations officer that SGH needs more proactive engagement with smaller investors like us - the public - and that the CEO needs to come out blazing and tell us why this is a great company and why we should be believe in them and then present us more detailed facts and not ask us to trust them - I suggested a series of rolling quarterly updates
but this will not happen; their current overly appropriate silence is simply not enough right for the times. But unfort. it is the company style - to be overly, annoyingly (for us) appropriate with their releases. They have also held one on one telephone calls (of support and information briefing) with their long term institutional holders under the 5% shareholding category.
5. I was told it is unlikely that the CEO / SGH will issue a statement of any kind. They don't have anything material to add at this stage - they could do what those UK companies did - reassure investors with their thoughts on the new policy proposals - but they don't have to as such; & the UK is too uncertain to put numbers to - and any internal remodelling is not appropriate for market consumption; so if we're expecting something, suggest we look to the past and realise (unfort. for us) SGH is playing a very straight bat - too straight for the current crisis IMHO - and it is a crisis, a crisis of confidence. But don't expect a statement is what I'm suggesting. Still hope I'm wrong and my complaints did not fall on deaf SGH ears.
6. The whole BS about the dodgy accrual accounting is just that, BS. Basically, I had a small business and luckily it has grown to a medium sized business - so the ATO has told me now I have to convert from cash to accrual accounting - it is a cashflow (negative) pain in the bum. Profit (is recognised) but cash (is delayed). Once you painfully accept the principle of accrual accounting - and SGH's principles - a share of WIP on the purchase of those 100% owned companies has to be booked as profit - that's accrual accounting - so they have booked their acquisition WIP as gains - to flag it that way because that's how is has become a gain or they could have just said it was not going to be current WIP and therefore not flagged it as profit. They believe it is current so it has to be booked that way IMHO. That's just accrual accounting. Took me a while to accept but have accepted it. It they can't convert, that's when we can question their split into current and non-current.
7. I don't think we'll see major price recovery until after the full year accounts are released - long way off and not happy about it - but unless they close the cashflow first-half gap big time (but don't think they will) where's the + triggers?
8. Like Mighty and many others - I enjoy your posts Mighty - I have valued the company myself and against brokers reports. Feel crap about the price and major loss of my (and other's investments) - genuine life changing losses on paper for many people - but remain convinced of the medium term prospects.
9. Hated seeing a turnover of 100 million shares Friday - this is a huge shift in ownership. New register begins in a few weeks I reckon as we'll see more turnovers next week - why wouldn't we? But I'm guessing this crisis will create a few new millionaires in five years time.
Hope some of this helps. I won't post a lot - just when I have some new info or get p'd-off with headlines line 'Liquidation' and 'Bankruptcy'.
