SGH 0.00% 54.5¢ sgh limited

Up %15 and so quiet., page-111

  1. 2,018 Posts.
    MazC

    PE Ratio ( Profits multiple ) PAT X PER = Market Capitalisation

    Also EPS ( Earningsper share) X PER = Share price.

    Now PER is 0.65

    Its absolutely bonkers unless there is big dilution about.
    If there is no dilution coming the SP is bonkersly cheap.

    If there is HUGE dilution coming - say 50% - then there would be less debt to pay off and PER would be 1.3.
    The SP would still be bonkersly cheap.

    Redde ( uk very similar to SGS in its business practices) has current PER of 17.5
    ...meaning SGH SP would have to grow by thirteen and a half times to have the same PER.

    I am not exactly wanting dilution and debt reduction ( because it would limit the SP in the end) but I would be totally relaxed about any dilution that did not exceed 75%. the real downside to dilution would be dumping of new shares .

    SGH PER isnt normal ........any PER of a highly profitable company lower than 8 is really abnormal.
    Normal would be 13 or above.

    PI's are being stripped of wealth. Dont let them do it. Hold till its normal.

    Mel ( Not wrong in theory - but ?)
 
watchlist Created with Sketch. Add SGH (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.