(apologies my English... I'm Brazilian native and my English is very poor)
Lets talk about the share and the business.
Sometimes the market react so in "panic mode" that comes close to "fun" and "hysterical".
Yes, of course events like the ASIC investigation on SGH have some responsibility, the scare of similar action and so on.
SHJ did 100% correct every single action and in "advance" react and reacted extremely to avoid need again and again review his guidance.
Result ?
People looks like become blind. The company confirm the guidance of 43.5 profit. This is huge for such share market price.
Mistake (and very accountancy mind) consider the provision of one off 17.5 is "write down".. No its not.
Every year you adjust the "reality x provision"... meaning..the money maybe will come... For sure they overstate to avoid on June gain adjust the provision..
Meaning.. we have 26m profit plus something with a net debt of 23...
Uowwwww... you name the company (service) that can come and show 10% profit (in worst scenario),pay 2,3,4% dividend , pay full debt and begin next financial year with
a) zero debt
b) guidance 43.5M profit +
c) market cap 225
d) the 20% plus profit allow company pay net 10% dividend...
Are you sure the price is 0.53 ?
What I can say is... we will move very soon all way to 1.00 that still will be a bargain,but probably funds will prefer wait until yearly confirmation.
But retail, traders, small medium and even some large investors... This ones you can bet..
Monday Morning at 10:00 they will be with fingers in their computers..
Cato (have a good week end)
To the ones that want a summary..
PROFIT GUIDANCE is currently 10% of market capitalization(highly protective and safe ),and ...guidance 2017... 20% (afgian with amazing high 17.5 additional provision)
SHJ Price at posting:
53.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)