You're right - there are uncertainties everywhere you look, which makes it a fascinating situation.
Why haven't SGH been massively slashing OPEX, good point. Can read this either way. Confusion/paralysis vs. confidence possibly.
As I've posted before, just Swinton plus Brightside back on paper seems requires 200-300 heads roll to try stabilise motor division. And this problem just iceberg tip.
No logic in banks taking on equity as swap, except as providing breathing space. Could happen....theoretically.
There seems a disconnect - as why not deal with lenders on 29/2? What's being waited for or are they still trying keep lenders at bay?
Big problem OPEX cuts here is upfront cash redundancies.
OPEX cuts itself naturally these kinds situations as best and brightest leave. But no mainstream news yet of mass departures, few "here and there" departing not newsworthy even if across business.
So perhaps management just rely on leavers anyway to cut OPEX away.
It's in hands lenders, and they don't have good options. Though almost 100% sure here: there will not be throwing good money after bad.
SGH Price at posting:
25.5¢ Sentiment: Sell Disclosure: Not Held
