Hindmost youre correct in theory, if correctly executed. But...

Hindmost youre correct in theory, if correctly executed. But with SGH the eps growth has not matched CAGR, indicating the synergies have not been developed in the roll up strategy, which is pretty well arequirement with such a strategy . Yes the acquisitions have been earning accretive (thats the easy part of a CEO selling the acquistion strategy to shareholders) but youve got get to get an increase in margins as well. Of course cashflow will be hindered with the growth stage of such a strategy, but I would argue they are going backward. The breadth and scale, let alone the question marks hanging over Quindell, in my opinion are beyond the ability of current managment (given their lack of progress in increasing margins with the past acquisitions) to roll up into one efficient operation.

Look i could be wrong in my analysis, but to be truthful I think a lot of crap has been posted stating SGH is a blue chip going cheap. A lot of posters refer to its eps growth and then quote Ben Graham,as somehow this makes them wise, savvy investors ( in my opinion Graham and Buffet wouldnt go within a bulls roar of SGH)and then the only fundamental they refer to is eps growth. Well if you wanted eps growth some 8 or 10 years ago you would of been piling into ABC Learning.

Anyway its a market so good luck.