Dear Cato, Gutsy move to catch a falling knife, not sure myself...

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ChristopherC

4,959 Posts.

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02/03/16

09:20

Post #: 17162181
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Originally posted by Cato ↑

Dear holders (even shorters)

During months we saw the share be smashed under N different reasons.
Every single "fear" was priced.

Suddenly the company announce and most of fears become true... Another strong drop day before yesterday and yesterday.

The repertoire of the "shorters" begin to exaust by lack of subject... Well.. they discover one very soon.
The bank will call the debt.

Just somebody that doesn't understand can fall into such non sense drop. You cant call a loan before the expire day.

But something sounds people are missing.

Dozens of big funds and competitors and people with huge volumes of money always looking where allocate (like superannuiation funds) dream for buy companies that can produce fair income a year.

The model is profitable and SGH in Australia proved that during several years.. Not 1,or 2.

At that moment when still some people are scare of irreal ghosts,some boards all around globe are considering take over and/or propose an associatition.

They know 350,000 would be the "best" and for sure the board will be sensible for such association.

No real dilution because you receive in one hand and pay debt in another (some like debentures etc).

Aside of that real chance, the board are 100% aware and obvious they have no interest to spend 10 dolars in UK to receive 8.
They go all way to cut from 10 to 7 to turn in one quarter the business breakeven and next quarter profitable (7x8)

When people will look in the mirror for sure they will ask..
Why I didn't buy the shares when was 0.30 ?

More than ask,the ones selling in the panic mode should ask themselves... if you lost 95% of your capital,are you sure you can bear 96% ?
Meaning...sell at that price is far from wrong decision,is emotional decision.

No..this is not fin advise is my view based in experience..

People that come here and try to trace parallel with FGE (FORGE) show how illiterate they are in terms of reasons why a company go bankrupt.
FGE was not a problem os "cost" was a problem of NO SALES.
SGH have 1,000,000,000 in "SERVICE" that means huge amount of value per si.
Other compare with BBrown again show just how non sense arguments people use when they want still progress shorting.

My sincere view is:

The short process will begin today the coverage..not in panic upside but slowly day after day they will cover and invert the trend

Cato

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Dear Cato,

Gutsy move to catch a falling knife, not sure myself that it wont fall more.No sign of turnaround at pre open so holding off buying more at this stage, still holding my original investment though as it has fallen too far to trade with certainty, good luck and hope it does as you predict.

SGH Price at posting: 31.5¢ Sentiment: Buy Disclosure: Held
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Dear Cato, Gutsy move to catch a falling knife, not sure myself...

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