Kamikaze I have assumed a well advised CEO would, with advisors...

Kamikaze

I have assumed a well advised CEO would, with advisors , look at gearing post deal .
I assume they also worked out what a $90M advertising bill would do ( and looked at the alternative of slower rebranding once office move completed / new computers/ systems/ & cuddly toy bits of HRM post deal were completed) I have assumed that they really would have carried out leverage sensitivity analysis ........and had an 18 month path back to lower gearing clearly worked out. In the jigsaw NIHL would fit a large slice ( timing/amount) of the bill if it comes good.

I think the Tories know that having a complete Left wing Fool now leading the opposition means that a competent mainstream Labour leader replacement , before the next election, could sweep labour to power .......and that effectively cancelling TORT for the poor ( Osbourne reforms etc) would present a huge open goal to Labour to hammer the "Nasty party". I think pressure will ensure that the UK poor retain TORT - won over 5 centuries. This issue has been overshadowed by Brexit but I am more sure now than I was last year that the signs show a huge watering down of the reforms.

I hope my assumptions are right. If so we are invested in a hugely undervalued share. If however SGH is stuck with over $600M borrowing for the next 18 months ...it is not good . It would not be the end , because they can dilute , but the Turnaround would slow.
At a PE of less than 1 - still worth holding , but PI's need hope.

Whatever else is true it is my hope that they can clear the mist with some clarity on the plan in Feb.

Mel