Mel -
- SGH paid $1.3B for a business that was losing money and was cash flow negative.
- It needed more money put in to get to the point where it now has positive earnings
- the medium to longer term EBIT contribution may only be $60M to $80M per year based on the 2H 2016 figures
So how is that not overpaying ?
If SGH paid 5 times medium term EBIT - say maybe $350M less the amount needed to fix it up - you could justify that.
As Denbo pointed out above - what they actually bought wasn't what they thought they were buying. At the end of the day management and the board are responsible for that, and they are still there !
- Forums
- ASX - By Stock
- Tentative signs of rocket firing
Mel - - SGH paid $1.3B for a business that was losing money and...
-
- There are more pages in this discussion • 329 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SGH (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online