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54.5¢ slater & gordon limited

The banks may not let us have the time though, hope I'm wrong...

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paulmbest

129 Posts.

16/02/17

17:39

Post #: 22677500
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Originally posted by Successwillcome ↑

There is an old saying investing on the stock market should be long term. 5-7 years used to be the recommended time frame.

You may have bought your share late 2015? What do you think your SGH share will be worth late 2020-22?

Nobody knows but there is a chance it will worth more than $3.00 is there not? It used to be $8+ less than two years ago.

What do I get for $0.20
- part in an approx $900mil revenue international leading law firm currently working with lenders to agree on recapitalisation plan for the group
- a company that has invested heavily in the UK and for the time being paying a heavy price for this adventure
- UK business has shown signs of improvement but recovery is slower than expected, however it is expected that normalised EBITDAW and cash from operations to be better than the prior corresponding period
- it is expected that 2017 H2 will continue this progress
- UK goodwill will be written down further
- Australian business is showing signs of reduced revenue however stronger fee results for 2017 H2 are projected
- the above revenue decline is being offset partly by a reduction in operating expenditure
- a performance improvement program is currently underway in Australia to ensure the business remains strong and continues to improve and grow over time
- net operating cash flow is expected to further improve from 2016 H2 but will remain net cash flow negative 2017 H1
- a company that is hiring permanent NIHL post settlement staff in the UK (this portfolio alone could be worth $100mil to $200mil)
- a company which in the UK have 98% of clients recommending us
- a positive Barrister's opinion in relation to escrow money worth 50mill British Pounds
- part in a massive UK CA against VW (could create improved brand exposure).

Then the unknown in relation to our major UK purchase from Watchstone. Are we going to sue Watchstone and/or our external due diligence high profile advising specialists (if going ahead on this and if successful then it could be worth multiple $100mills)?

To me it is important to note that restructuring and PIP is expensive and have affected cash flow negatively for 2017 H1. Once completed in the UK and Australia we will have permanently trimmed costs and wont need to spend that cash anymore.

Economies of scale and competitive advantage come to mind thinking ahead.

Looking forward there are also signs of a turn around.

Not at fast as hoped but nevertheless we are moving in the right direction.

My SGH share goes nowhere.

I am here for the long haul.

Time is my friend today as it was before today

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The banks may not let us have the time though, hope I'm wrong but disaster of an announcement today

SGH Price at posting: 20.0¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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The banks may not let us have the time though, hope I'm wrong...

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