Guwop How jolly interesting. It is just that little ( I lie) me...

Guwop

How jolly interesting. It is just that little ( I lie) me thought it pretty obvious that scale and batch processing and good management accounting practices and reporting do work.
How exactly is long term large scale , and its consequent competitive advantages, to be obtained without access to the capital markets?

In 2017 it should be possible to discern trends in the SGH ( and SGS and NIHL) figures. It will be lovely to review figures where consistent accounting rules are used at the beginning and end of the period under review.

OMG soon there could be 9 figure EBIT coming down the track. Only a fool could not adjust the fixed and some variable overheads to ensure that is ongoing. Well well where is my thinking cap. Could dominance and a Venn diagram ( and capital) ensure modest growth continued in other legal market segments. Where is the money in law? Batch processing, Prima donna specialists, patent law, corporate transactions. When SGS is bedded in and put to bed ( cash generative /efficient) NIHL cash is extracted and then NIHL WIP shrunk ......the Venn diagram will be sweetly whispering what next?

SGH may look entirely different when it can point to material inroads into shifting the debt.
That scenario is not unlikely and can be achieved with operations contributions and financial engineering .

The dragon is just sleeping and the 2018 potential is actually huge. 2017 = wake up smell the coffee mode and those with half a brain know it? The forward PE is less than 1.. that is wonderful territory for any investment banker. So long as the operational profits are ongoing - whatever plan you come up with to reduce debt - everyone ( with the exception of those PI's caught at $8) is a winner.
The investment banker looks like a genius......which of course is not the case.

Mel