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54.5¢ slater & gordon limited

"It's got me stuffed how a company can use its own assumptive...

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mike8654

694 Posts.

43

20/04/18

22:07

Post #: 32597890
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Originally posted by Fishinnick ↑

Yeh, that's a start for sure . Even I'm tempted to write but a Butcher gong has a lot less impact than a legal or professional gong and I would struggle to use proper wording like "properly served" and all that good quality BS.

Someone should put a pen to paper imo, not sure if the money angle is the right way to go though, the problem isn't really about the money. I would focus more on the rights and wrongs of what happened and what's allowed, market reputation .

SGH imo is a prime example of what ASIC should be preventing and it's failure to do so is either ASIC snoozing on the job or lacking disclosure laws, unfit accountancy rules and reporting standards etc imo. . The SGH failure has caused much heart ache for some along with significant financial harm for many.
I personally don't know the law or if any criminal activity has taken place here, I presume there hasn't been because no one's been locked up. All I know or think is mum and dads investors like Jim for example need protecting or should be protected from companies like this by ASIC .Future earnings are a tricky thing to put in the books for this type of service company, far too many assumptions and testosterone based judgements can be used to come up with a number, you've seen they've all had to do writedown because of different accounting standards, is it enough I'm not sure .
Couple of other things that bothered me were why is a listed company allowed to have higher WIP than a private one pro-rata? I say this because I've heard about or seen articles that suggest that after SGH bought smaller practices SGH was allowed to increase the related WIP. Surely they're arnt or shouldn't be rules for some and rules for others, how can that be right and wouldn't things like this lead to discrepancy or something.

I would even raise a question as to why SGH was continually allowed to use its PSD DD numbers in the books as a true representation of reality AFTER PWC concluded and released its findings on its little lookie at QPP and after QPP restated it's accounts which showed it as a loss maker . SGH DD relied on its it's own measures and methods to determine if what it was buying made any money, all the brokers analyst etc got it wrong because the DD was based on fantasy imo, ASIC imo should have laws that would have made SGH revisit, recalculate and restate it's present and future outlook using the audited reliable restated QPP books the day they were released .
The difference between the SGH PSD profit assumptions and the actual restated audited books of QPP was in the 100's of millions and a swing from profit to loss, surely the size of the discrepancy raises doubts about SGH's forward guidance .
It's got me stuffed how a company can use its own assumptive numbers when there's real ones they can use.

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"It's got me stuffed how a company can use its own assumptive numbers when there's real ones they can use."

They only got to use the assumptive numbers for about 6 months Fish - auditor's brought them back into line with the 1st half 2016 report. Trouble is I suppose that was the 6 months where the longs got most of their value wiped out - mainly I guess because the smart end of town made a headlong dive for the exit.

SGH Price at posting: $3.11 Sentiment: None Disclosure: Not Held
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