The business as usual thread, page-62

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Dr.Who

4,679 Posts.

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12/04/16

21:32

Post #: 17486641
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Originally posted by Melrosian ↑

Dr Who

I can. When SGH has $2B market Cap ( with 352 million shares) SP would be $5.68.

Of course it wont because :

A. SGH has to do as much as it can to reduce debt
B It will still has too much debt and financial engineering needed. That means dilution . I am a dutchman if they dont want to minimise that by nibbling ...I can see 30 % dilution over the next 3-4 years. ( Quite sanguine about that. It would still be a good investment at 80% dilution from here although it really wouldnt do to nearly kick empoyee holdrs too hard in the *uts. )

So $5.68 X 70% = SP of $3.98.

Your 190000 would = $755K

Of course 2 things copuld improve on that .......50% profit hike would add 50% value to your holding
And with Mell iflouosity about, PE might be 15 and so add another 50% to your holding

So $755 X 2 = $ 1,500,000 ( Good Innit?)

Then we can call u a rich *astard . You can call me what you like , but I may have to change my domicile to avoid inheritance tax. No Inheritance tax in Oz. I have a few more than you but am a bit embarrassed at av cost..but it is quite possible Quite fancy Tazmania where less heat.

Investing is a strange game. However here is a really unusual situation where Insts have had to depart because someone is looking over monthly performance figs. PI's rule.

Believe it or not there are a few large obscure investors out there which take a long view. Lets give an example.
Readers here wont have heard of Baillie Gifford, They manage an investment trust ( SMT) with 3.7B £'s market Cap.
They took a huge gutsy prelaunch position in AliBaba ( China's Google) - havent sold 1 share and say they will probably hold fro another 20 years. Caledonian Inv trust has a gutsy long hold on Avanti Comms ( wont turn a profit till 2018) and sitting on big losses.

Good research by those at the top of SGH ( who knows someone might advise them) might get them to talk to some of those who could take a long view . If the plan is AUX 100 reentry and dual listing ( FTSE) in 3-4 years ( and why not?) then a gutsy player like Baillie Gifford might be exactly the type of white knightish ally SGH needs. The likes of BG are not going to invest until its turned the corner but talking now makes sense.

mel

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Mel to change domicile you will have to renounce Murrayfield as spiritual home, give up the dog and sever all ties to Jock land. Is it worth it?

p.s with $1.5m I could arrange a hit on Joubert or buy Isle of Jura. Think I'll put a down payment on Jura.

SGH Price at posting: 21.5¢ Sentiment: Hold Disclosure: Held
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The business as usual thread, page-62

Top Stories

Utah authorities sign off on Anson's lithium extraction plans at Green River

Enova Mining unveils "high-grade" REE drill hits at Coda North, Brazil

Olam Agri raises Namoi takeover offer to 75 cents a share and receives shareholder backing

Metals Australia kicking off plant study at Lac Carheil; Canadian tariff tailwind potential

Week 37 Wrap: HotCopper likes Cuban oil; markets shrug debate off for Putin; firebrand quant says social media a market threat

Dale Gillham's weekly wrap: US fracking support boosts outlook for Australian gas stocks

Medallion Metals kicking off 15,000m drill run at Ravensthorpe gold play

Vulcan appoints investment bank and M&A veteran to board

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Antipa divests its Citadel interest to JV partner Rio for A$17M, refocuses on Minyari Dome

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