Not sure I want to post this but I need to get this off my chest.
I'm looking hard for some kind of light at the end of this dark SGH tunnel but, alas right now, I can't see one.
Unless I'm missing something, SGH just seems to be bumbling around in the dark with no prospects that I'm aware of that anything is going to to change for the better in the future.
I mentioned a 'basket case' in a post yesterday - and someone responded I was wrong.
I wanted to be wrong - I think we all wanted me to be wrong.
But, the notion won't go away, and unless someone out the in HC-land knows something I don't about any future prospects I'm going to suggest it's current 'management' seems to have lost the plot - and re-iterate I think SGH is currently a basket case.
By future prospects, I'm not talking about speculation or notions about WIP or revenue from unknown volumes of NIHL cases happening sometime in the unforeseeable future- I'm talking hard facts.
What's SGH got to look forwards to that will see it into a profitable future - that it hasn't got now?
As a number of posters have already mentioned, SGH's problems started long before last year's acquisition. AG's running around spending other people's money on purchases obviously wasn't bearing fruit. It was a financial disaster that AG had managed to create over a period of time that, seemingly, he was oblivious to.
Then, maybe the coup de grace came when seemingly without any notion of fiscal care, he signed off on the evaporation of a $billion in just a few months with seemingly, it seems, nothing to show for it.
Don't care how you want to dress that one up - it doesn't strike me as being a particularly good business practice.
And I still can't see how a $billion can disappear with at least something to show for it.
And if there IS something to show for it - where is it? It's certainly not appearing in the last set of financials.
The reason I bring this up is common sense tells me I cannot see for the life of me why anyone would buy an interest in any company that shows nothing but a history of incompetence and waste.
While I don't like the notion of baling out for a substantial loss - I have to ask myself, what am I thinking?
If I arrived at SGH today, looking for a future investment option, I'd move on instantly.
We have a company which pays no dividends, a shrinking SP and no future plans that anyone's aware of that will make a difference.
Why would anyone with half a brain would want to buy in?
And, the problem is, until they do, why would there be any increase in the SP - and for current shareholders, in the absence of a dividend, it's the only way anyone can grow their capital in this stock.
If there was any time for good managers, instead of running off to the other side of the world and keeping shareholders in the dark, to step up and tell shareholders why they might like to keep faith into the future - it's right now.
Frankly, I don't think this crowd is up to the task.
Back to the elephant in the room ... which is ...
Time to consider I've been wrong all along, (again) - and console myself that, maybe, at least I'm good company.
For the first time ever with SGH my sentiment is maybe consider selling. While I'll hold a percentage a bit longer though I think it's time to sell-off and limit my exposure to this dead-looking duck.
And if it isn't dead - I'd be grateful someone telling me why.
And, seriously, I shouldn't have to come to HC to be told a reason - SGH should be doing that.
But it isn't - maybe it's got nothing to say.
Thanks for listening.
And it's been a fun ride so far.
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