Time to find out what's happening, page-5

It amazes me that shareholders do not have faith in their own due diligence. If we look at famous fraud stories, the cracks in the wall have been obvious (refer to Sino Forest for example). If we look at recent financial flops such as Billabong, Macmahon and most notably Forge, the financial distress that these companies faced was predictable due to their funding arrangements. If one did their own research into the setup of SBB, it would be clear that it is a no-frills ownership business with two clothing consortiums under its banner that produce sustainable and growing revenues sources. They have obtained funding largely from seed equity, and partially from debt that will be fully serviced by the end of the year.

Share price deterioration can occasionally be used to foresee upcoming bad news, for example WDR dived 30% last week before going into administration this week. But investors only had to look back 6 weeks to understand that the company was in major trouble. In SBB's case, it would be clear by now if it had business troubles with enough people now perusing every single bit of detail it has released over the past year.