To me the whole situation is very simple: the sgh management making the market confuse : ie how could we meet the earnings target despite negative cash flow in first half
To answer , Tge management should be honest and make very clear confirmation on guidance .
1. Is there a profit downgrade ? If yes be honest . The lack of support primarily due to uncertainty on profit. No investors can value this company due to uncertainty of profit thus no one is buying the shares .
2. If no profit downgrade which has been mentioned by Andrew , then be firm and clear . Issue a letter to shareholders regarding this.
3. To show confidence the sgh management should shares on the market
4. Get an update from asic , see how long it required further
All these will help lift sgh sp
Dyor
SGH Price at posting:
$2.15 Sentiment: Hold Disclosure: Held
