Have taken a position here today on the following thesis as I believe SGR can do an AMA style move off the back of a substantial re-capitalization of the business and the markets now digesting the new balance sheet.
I expect that finalisation of the Austrac fine in the short term will be seen as a positive for the stock, unless this number comes in $800m+, which based on the Crown fine is highly unlikely.
Once price action clears the trend line - 59c, the door will open for a larger move in the short term with the gap back to 71c being the first significant target. MACD + RSI both positioned favorably to warrant this playing out.
Short interest has been materially reduced during the recap which tells me there are not many willing to bet on further price weakness from here.
UBS latest note out with a 95c twelve month price target. Left field does the company see a PE bid come through and Bruce rolls his position into the unlisted vehicle moving forwards?
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