I bailed, but there are parts of the long case that have merit. Part of me suspects that the extraordinarily heavy handed write down of good will was to force the hand of lenders and get the ASIC monkey off their back. with good will gone, the banks have nothing to sell, ASIC has no claim of wrongdoing, and they can get on with opex cuts and try to realise the benefits of the original investment (in PSD) case. The action also guarantees a massive selloff and hence totally cruels any notion of a cap raising / rights issue and forces the bank to maintain their support and wait for cashflows. This will be extraordinarily interesting to see play out, but i'll be watching from the sidelines. Preserving the little capital i had left is better than watching it all disappear in the event of administration.
SGH Price at posting:
31.5¢ Sentiment: Hold Disclosure: Not Held
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