@yensog Can see that you have done a good work there. Actually...

@yensog

Can see that you have done a good work there.
Actually there are plenty of good news in the report:

• Asic discontinue investigation
• Not breaching debt convenant in 1H
• Revenue growth is decent
• $660M of WIP – if the case resolution is faster by 10%, the net debt is reduced by $66M.

Only one unexpected thing which ruin everything:

• The unacceptable expenses (although some of it is one off i.e. payment to former owner, teething dragging efficiency, changing accounting system and asic review)

Things I think they need to do:

• Freeze salary increment
• Massive job cut
• Cost of sales reduction
• Advertising and marketing expense
• Administration and office expense reduction

Risk:

• SGH needs to reach an agreement with the bank (this will need to be done before the market can place a fair value for SGH);
• SGH management has only one chance to make it right (This is the biggest risk I reckon, since everything will be out of our hand now)

To avoid disappointment, better not to put much hope on SGH, the past one year, the management is seriously disappointing. I have never imagine they will blow out the expenses without realising it until recently. But it is good that now the book is checked by the independent auditor and everyone knows how bad the condition is the company.
Do keep in touch, will be looking for your update.