The Elephant in the room - SGH's future, page-251

First 251 Last

Share
Profile

Follow
Krispytech

4,431 Posts.

31/08/16

14:31

Post #: 18826143
Share

Originally posted by denbo ↑

Hi Krispy

Business do not GROW by contracting.

I'll try and explain.

All (growing) businesses incur costs - as fast as you get rid of one expense it's replaced by with another. That's as it should be.

And that's why budgeting is needed, in an attempt to control the outflow of dosh to a sustainable level - in direct proportion to the amount of mone (profit) coming in.

So ... while I noticed a whole bunch of people on the forum praising the demise of these 'one-offs' that are presumably paid which will be added to the income next report - I'm a'thinking 'OK, so what's next?'.

What a business really wants isn't to cut it's costs - if they're not wasteful.

A business needs to increase sales - increase the dosh coming in.

All expenses, then, should be seen as an investment, not an expense. Because they help generate the dosh coming in.

A business without expenses is like a person with no tax bill at the end of the year.

So, I'm happy to see SGH spend as much as it needs to on income producing expenses - as long as money coming in increases by a bigger amount.

Seems all SGH has come up with so far is staff incentives. (Oh! and pay rises).

Maybe they'll be giving away SGH shares.

Expand

They have t ostablise business.
Cut unnecessary costs.
These one offs are not necessary to grow business. That was 86 million dollars hard cash.
10 % wages reduction is restructuring . will improve productivity etc etc.
rents buildings etc etc.
SGH grew out of shape

SGH Price at posting: 42.8¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

Bitcoin investors need to know the risks

I88

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

SKS

SKS Technologies wins US$90M award to supply power to international hyperscale data centre in Melbourne

BHP

BHP dips as WA nickel suspended after A$6B hit; losses eased by US CPI and forewarning

Week 28 Wrap: ASX hits all time high; CBA shares' two realities; US inflation hits 3% ahead of China plenum

ASX hits all time high out the gate on Friday trades following bullish US inflation data

MDI

Nanocap Middle Island Resources kicks off Barkly copper-gold drill run – a potential IOCG-style NT project

NIM

Nimy to raise $1.21M to explore 'newsy' WA targets

AII

Almonty locks in govt agreement for tungsten oxide plant in South Korea

IMM

Immutep reports strong response rate from immunotherapies treating carcinomas

There are more pages in this discussion • 200 more messages in this thread...

First 251 Last

Add SGH (ASX) to my watchlist

The Elephant in the room - SGH's future, page-251

Top Stories

Bitcoin investors need to know the risks

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

SKS Technologies wins US$90M award to supply power to international hyperscale data centre in Melbourne

BHP dips as WA nickel suspended after A$6B hit; losses eased by US CPI and forewarning

Week 28 Wrap: ASX hits all time high; CBA shares' two realities; US inflation hits 3% ahead of China plenum

ASX hits all time high out the gate on Friday trades following bullish US inflation data

Nanocap Middle Island Resources kicks off Barkly copper-gold drill run – a potential IOCG-style NT project

Nimy to raise $1.21M to explore 'newsy' WA targets

Almonty locks in govt agreement for tungsten oxide plant in South Korea

Immutep reports strong response rate from immunotherapies treating carcinomas

Featured News