SGH (ASX) The long case... (yes there is one).

Originally posted by researchandwin ↑

1. The Banks stand more chance of getting their money back by calling in their loans and effectively forcing the company into administration. That cuts the shareholders out of the picture. The Administrator can then look for deals on individual components of the business. As certain parts of the business are operating quite well, it should not be that hard to raise a fair chunk of the outstanding debt. Remember the BANKS will get the lot - shareholders absolutely nothing. The Banks are also in a position to accept a combination of payments up front, equity and funding agreements from the various suitors. At the end of the day once the Company is in administration the BANKS will be the benefactors of the best parts of the business, whilst the junk gets dumped.

2. This is a services Company - Employees are your greatest assets. Cutting employee costs will cost you sales and provide an opportunity for your competitors to pick up valuable assets. Cutting employment costs normally costs you significantly in upfront cashflows and takes more than 6mths to result in positive cashflows.

3. Analysts have never been close and will revise down to the market as has been the case for months

4. ASIC was of no consequence after guidance was abandoned

5. S&G was in compliance two months ago - now the BANKS have demanded a plan - so now is now not 31 Dec.

6. Australian Business will likely sell for a healthy number when the Company gets busted up

The administrator will keep the lights on and allow SGH's profitable entities to continue operating. So if its profitable it will be retained. So that valuable WIP will remain in SGH's hands.

Stop thinking its in the Banks interests to keep SGH listed. If they do want to keep it listed, then its more than likely going to cost the shareholders anyway. CR at 10cents anyone?

The risks are extreme, hence the continued exit.

Expand

when DSH went bust ... and then couldn't sell it to some mugs - how much could the bank recover in that case - just the leftover stock?

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”

AII

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

NIM

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

BHP

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

SKS

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

GED

Golden Deeps eyes prospective Cu-Au tenements in NSW with HOA

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

IMM

The long case... (yes there is one)., page-12

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”

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

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

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

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

Golden Deeps eyes prospective Cu-Au tenements in NSW with HOA

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

Immutep reports strong response rate from immunotherapies treating carcinomas

Featured News

The long case... (yes there is one)., page-12

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”

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

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

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

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

Golden Deeps eyes prospective Cu-Au tenements in NSW with HOA

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

Immutep reports strong response rate from immunotherapies treating carcinomas

Featured News