Tentative signs of rocket firing, page-248

Jack

Broadly I agree with you - but a brief review of gearing post deal and the Wilson research meant I absolutely was unprepared to follow he QPP PSD initialy into SGH ( now SGS) . If I could see, after a brief look, the shorting (from my office) about to take place - then the directors and their advisors should have seen that too. Institutional investors did, and those obliged to support the placing knew they would ditch and short. Here we are. ( I have never shorted a share in my life and wont)

Now I didn't know enough about the SGH modus opperandum - or maybe how the business works,
but I am pretty sure I would have put raising the brand profile after the office move and making sure I had a happy efficient bedded in ship first . The $90 m advertising spend came as a shock . I admit I could be wrong on this.

From here my workings suggest SGH really really can get gearing from extreme to high in 18 months and that their business model is right time right place and in the end acretive. Someone should have told Jim and PI's it couldn't be in the short term. Buyers now with 18 months patience should do well since it looks as if the banks wont take it down . Messy if they do.

Mel