Waiting ..., page-5

Attempting to look at the situation through Simon's eyes right at the moment:
- Still potentially a truck load of cheap shares bought at 1.5c floating around, putting sustained selling pressure on share price.
- Still needing a major acquisition (similar to YHD) to get to a longer-term business going with at least $30m turnover per annum. Using the rule of thumb of 3x earnings and recent experience, it's possible that just about the whole chunk of cash reserve would need to be spent (unless partially funded by debt - cheap interest not a bad thing if operating cashflow can support it).
- Unless the selling pressure goes away, there is little chance that oppies get exercised at 3.5c (sorry folks) to put extra $2.1m in the bank. Bad for the company if there is another CR with significant dilution (pissing off other key players like Domenic, Mark and Chris), especially when having already burned the people who took up the recent 2.3c and 3c issues in the past 18 months.
- As a nano-cap there is little street cred or track record to attract any other insto interest to chip in. Unlikely that a comparable business like GEG (turnover of ~$400m) would even take a look at SHP as a potential bolt-on and pay a premium for it.
- Consumer sentiment still relatively subdue despite low interest rate and cheap petrol, offset by weak wage growth and sky-high house prices.

In short, without a breakthrough to double the current size/scale SHP would be stuck in no-man's land.

Having said all that, one would also argue that the company has more intrinsic value at 1.6c today, than paying 1.7c a piece 18 months ago when revenue was on the decline with no ability to scale, and since then the company has gone leaps and bounds to transform and grow.

OK for those long-termers having the faith and balls who don't need the cash to buy food or pay bills. Not OK for those invested who need a positive moment to get their cash-back/options/bonuses/fees. OK for those on the sidelines having bigger fish to fry and not having to watch paint dry (or quietly waiting to buy some for 1.3c at the triple-bottom).