Australia's largest stock trading and investment forum Australia's #1 stock forum

SGH

0.00%

54.5¢ slater & gordon limited

SGH, page-117

First 117 Last

Share
Profile

Follow
jimk3758

23,128 Posts.

83

20/04/18

16:23

Post #: 32591797
Share

Originally posted by Dr.Who ↑

Jim, Mr Grech said at the 2015 AGM briefing that debt/equity ratio at 43% was above their preferred level and will get it down to 30% through converting WIP (worded to the effect of not going to look for verbatim quote)

S&P index rebalances happen every quarter. March, June, Sept, Dec - at April 2015 SGH was on the verge of admitted to ASX100. It wasn't in the inde until the rebalance In June 2015.

As you say I should have known that, it looks like I did!

Also thought it would be interesting to recap some broker (who were covering the company) quotes from that time April 2015.

What do the brokers think?

UBS has taken a positive stance on the new look Slater and Gordon with analyst Jack Briggs noting the group will become the largest player in the UK personal injury market with a share of 12 per cent and enjoy the added benefits of first-time access to the insurers and insurance brokers customer acquisition channel.

Briggs also said, “There is a high degree of conservatism in Slater and Gordon’s EBITDA estimates as no synergies have been assumed, and case assumptions also look conservative relative to current levels".

UBS upgraded its recommendation from neutral to buy and increased the 12 month price target from $7.45 to $8.83.

Deutsche Bank was also upbeat about the development, but Dominic Rose noted the relatively high transaction multiple. However, she echoed UBS’s comments in saying, “Upside potential exists from improving the business and extracting synergies".

Rose has a buy recommendation on the stock with a 12 month price target of $8.20, but this is likely to be reviewed once the deal has closed.

Morningstar is one of the more bullish in terms of assessing Slater and Gordon’s robust position within deregulated and highly fragmented markets, and this is reflected in its fair value estimate of $10.00.

Expand

I was at the 2015 AGM and I don't remember any director saying SGH was over-leveraged but they talked about shorters and something should be done about them. I also remember you mentor Mr. Andrew Grech asking shareholders to trust the BOD.

You got it wrong again about SGH on the verge of being in the ASX100 index. SGH was booted from The ASX1oo on December 18, 2015 so it was definitely in the ASX100 index and not on the verge of being in the ASX100 as you stated. Here's the company ANN of removal from ASX100. It was later booted from the ASX200 as well.

Last edited by jimk3758: 20/04/18

SGH Price at posting: $3.11 Sentiment: Sell Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

AI stocks: What to expect in 2024-25

FMG

Andrew Forrest was seemingly possessed by the spirit of hydrogen – now he's cut 700 jobs and canned FFI

Talking Australia's very competitive property landscape: Realty Talks

NRX

Noronex joins forces with South32 to look for copper in Namibia

CC9

Wyoming could be America's next hard rock battery metal province – and Chariot Corporation can help