SGH (ASX) Short Selling Gross Sales as a Signal?

Originally posted by Basileus ↑

"Now let's say I'm a client of there's and I've approached them for legal matters, now why would I even bother to approach them and put money into there trust with all this bad news that I'm hearing."

With all due respect kunleesp - I think this paragraph shows that you simply do not understand how lawyers / law firms work. If you hold shares in SGH then it appears that you have bought into something you do not quite understand. Nothing wrong with that as it happens every second on the ASX.

However, I think that your generalised statements are a mere fishing exercise to gain further facts from other posters that you seem unprepared to research and locate by yourself.

I am a holder and I have a reasonable understanding of how law firms operate.

You would not be asked to put money into a firm's trust account until such time as you were preparing for court - mostly. And that is always a reasonable amount of time from your initial consultation. Further, only ~3% of cases end up going to trial. The vast majority of cases are settled via a negotiated outcome. Even criminal cases are either plea bargained or settled as a result of guilty pleas (negating the need for a trial).

Most civil cases are resolved by negotiation and, in most cases, dollar values are a part of the negotiated outcome. WIP refers to precisely that form of settlement. I wouldn't think (but I don't know) that SGH would include cases that are destined for trial as WIP. Trials are very unpredictable. However, you can estimate the size of a negligence payout (e.g. where an employee sues the employer for losing a finger at work) because there is a reference table of figures that attaches approximate value to the loss of body parts and or function. In those cases, estimation of a payout is relatively easy. Therefore, one can approximate the size of the payout / fee due to the lawyer / firm etc. Contributory negligence might reduce that figure.

There is more to be considered but that's all you get from me in response to your most recent little fishing expedition kunleesp.

Still a holder - rarely post as there are too many alarmists and misinformed doomsayers on the SGH board. Whenever you say something that the "louder" voices do not agree with - one is then at risk of being bombarded with insults. I had to put one person on ignore as he started out abusing me here back in January and then followed me to other threads to continue hurling insults. Weird.

Is SGH a risk - yes. Getting out of bed and crossing the road is also a risk.

1. There - "The ball is over there."
2. Their - "That is their car"
3. They're (contraction) - "They are going to the beach"

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I was just reading someone else's post. So your saying SGH don't take any money upfront and all there work is no charge if no win ??