SGH - Slater and Gordon

[Rainman]

I'm shocked by it all. I haven't seen anything like this ever.

This is an object lesson that is priceless.

 

[DeepState]

I haven't seen anything like this ever..

It happens...some acquisitions aren't easily digested and can produce poor synergies. The acquisition target might even have prickly risks which seemed obvious and are there for all to see, yet turn out to be harder to swallow than expected.

 

[shouldaindex]

Good lesson to know what you're investing in.

It's really sad to see 'the other place' where the majority have a very basic mental make up, trying to barrack for the SP every hour, having very little idea about what affects the shareprice and earnings of the company.

 

[fraa]

Good lesson to know what you're investing in.

It's really sad to see 'the other place' where the majority have a very basic mental make up, trying to barrack for the SP every hour, having very little idea about what affects the shareprice and earnings of the company.

What is this other place ? You talking about hot copper ?

 

[skc]

Good lesson to know what you're investing in.

It's really sad to see 'the other place' where the majority have a very basic mental make up, trying to barrack for the SP every hour, having very little idea about what affects the shareprice and earnings of the company.

I looked there a few times. I deduced that everyone on the other forum must be delusional... the 85% who still think this will go back to $6 are delusional by their posts, while the remaining 15% who keep posting there with rational thoughts are delusional by association.

The funniest was probably someone with the name "TechnicalsSayItAll" keep ramping it up every minute or so. Cashflow problems? Good news. Regulatory change? Good news. Price crashes 50%? Good news. Most Monty-pythonish.

View attachment 65130

Love it. The question is... would the snake starve to death if it didn't swallow the porcupine?

View attachment 65121

One of my favourite characters from the Simpsons.

SGH's recent woes remind me of Claudius' line in Hamlet:

"When sorrows come, they come not single spies
But in battalions".​

Beautifully put. Can you come up with another Shakespearean quote when ASIC gives them the all clear... yet nobody cares anymore?

 

[Ves]

Beautifully put. Can you come up with another Shakespearean quote when ASIC gives them the all clear... yet nobody cares anymore?

No... but can we assume they may change their name to "SlaterGordon" to keep up with their good mates at "LendLease."

Thanks for all of the posts guys, fascinating reading.

 

[Rainman]

... Beautifully put. Can you come up with another Shakespearean quote when ASIC gives them the all clear...

Yes I can.

The rest is silence...​

 

[McLovin]

I looked there a few times. I deduced that everyone on the other forum must be delusional... the 85% who still think this will go back to $6 are delusional by their posts, while the remaining 15% who keep posting there with rational thoughts are delusional by association.

The funniest was probably someone with the name "TechnicalsSayItAll" keep ramping it up every minute or so. Cashflow problems? Good news. Regulatory change? Good news. Price crashes 50%? Good news. Most Monty-pythonish.

The other forum is hysterical. One guy posited the question "will SGH go bankrupt or be taken over?" First response: "What an idiot statement". Second reply: "Without a shadow of a doubt - NIL CHANCE"

 

[Klogg]

The other forum is hysterical. One guy posited the question "will SGH go bankrupt or be taken over?" First response: "What an idiot statement". Second reply: "Without a shadow of a doubt - NIL CHANCE"

For a laugh, visit the Mesoblast threads there as well. Absolutely hilarious!

 

[Rainman]

SGH and its management no doubt offer many lessons to novice and pro investor alike. But surely one of the most telling that it offers is this one: This is what happens when you thoroughly destroy investor's and the investing public's faith in the company that you manage and in your ability to manage it.

 

[Risk Manager]

It seems to me that you are already so sure about everything while the reality is that in the UK no law has changed yet and even if it does, nobody can assess the real impact on SGH's revenue yet.

 

[Rainman]

It seems to me that you are already so sure about everything while the reality is that in the UK no law has changed yet and even if it does, nobody can assess the real impact on SGH's revenue yet.

With respect, I think you're missing the point.

Whether the proposed changes are introduced in the UK or not is irrelevant. The point is that these changes appear to have completely blindsided SGH and they did not factor at all into SGH's purchase price of Quindell which, most people agree, SGH not only paid full freight for but overpaid for. So much for due diligence.

But even that is only half the story. SGH's management, whether on the accounting issue, the Quindell issue, the 2016 guidance issue or the proposed legislative change issue in the UK, have clearly been behind the 8 ball on each occasion.

It is not a very reassuring look - particularly when you have a balance sheet that looks increasingly overleveraged.

 

[Stratagist]

New to this forum and no do not post under any other user name

Have been perusing a number of forums since the SGH saga
Seems to me some of the other forum posts are for manipulative purposes only
Pull me up if I am wrong but the grasp of the English language seems to be sadly lacking with off the cuff comments based on speculative ideas with the hope of manipulating the market to gain an advantage
Sure at this stage SGH based on current price does not look good and everyone is guessing what will happen this coming week
It is the shorters who have created this crash and panic
Referring back to Quindell before the SGH acquisition they lost around 80% of thier market value after falling victim to one of the most infamous short selling attacks in trading history falling victim to market rumour and gossip.
Since then the share price made double-digit gains
Surely SGH were aware of this and did not fly in blind

In this respect an interesting read http://www.investopedia.com/articles/analyst/030102.asp

The catalyst for this sudden depletion in the share price appears to be based on a lone announcement by the British Government re third party claims and pending inquiries into the accounting practices consequently the shorters jumped in creating market panic

I am a substantial holder in SGH and have managed to average down to a respectable price and will be looking for an out with profit in the coming months
Next week will tell the story
It is not a sinking ship yet and yes I do have the life jacket on

 

[Rainman]

... It is not a sinking ship yet...

I don't think that it is a sinking ship either - yet. But I wouldn't rule out a capital raising in the not-too-distant future if SGH's debt convenants come under further pressure.

 

[skyQuake]

New to this forum and no do not post under any other user name

Have been perusing a number of forums since the SGH saga
Seems to me some of the other forum posts are for manipulative purposes only
Pull me up if I am wrong but the grasp of the English language seems to be sadly lacking with off the cuff comments based on speculative ideas with the hope of manipulating the market to gain an advantage
Sure at this stage SGH based on current price does not look good and everyone is guessing what will happen this coming week
It is the shorters who have created this crash and panic

Proof?

Referring back to Quindell before the SGH acquisition they lost around 80% of thier market value after falling victim to one of the most infamous short selling attacks in trading history falling victim to market rumour and gossip.
Since then the share price made double-digit gains
Surely SGH were aware of this and did not fly in blind

More interesting that slaters purchase was nowhere near the old highs but rather close to the lows. So there must have been a grain of truth to the short selling attacks since SGH's lowball offer was accepted

In this respect an interesting read http://www.investopedia.com/articles/analyst/030102.asp

The catalyst for this sudden depletion in the share price appears to be based on a lone announcement by the British Government re third party claims and pending inquiries into the accounting practices consequently the shorters jumped in creating market panic

I am a substantial holder in SGH and have managed to average down to a respectable price and will be looking for an out with profit in the coming months
Next week will tell the story
It is not a sinking ship yet and yes I do have the life jacket on

What is your life jacket? stops?

 

[McLovin]

Referring back to Quindell before the SGH acquisition they lost around 80% of thier market value after falling victim to one of the most infamous short selling attacks in trading history falling victim to market rumour and gossip.
Since then the share price made double-digit gains
Surely SGH were aware of this and did not fly in blind

SGH gave them £637m. Their market cap is £445m. They're going to hand back £414 and keep £90m, don't ask me where the rest has gone -- it looks like they repaid some debt and the rest has just funded the biz, and I guess there is some tax to pay. The market values Quindell ex the return of capital at £31m, that's a company with net assets of £285m (mostly made up of intangibles) hardly a ringing endorsement. The rally in the price represents nothing more than the fact SGH just gave them a big sweaty wad of money. If someone comes and ponies up $1.25b for SGS I'm sure the SP of SGH will rally.

 

[Triathlete]

New to this forum and no do not post under any other user name

Have been perusing a number of forums since the SGH saga
Seems to me some of the other forum posts are for manipulative purposes only
Pull me up if I am wrong but the grasp of the English language seems to be sadly lacking with off the cuff comments based on speculative ideas with the hope of manipulating the market to gain an advantage
Sure at this stage SGH based on current price does not look good and everyone is guessing what will happen this coming week
It is the shorters who have created this crash and panic
Referring back to Quindell before the SGH acquisition they lost around 80% of thier market value after falling victim to one of the most infamous short selling attacks in trading history falling victim to market rumour and gossip. Since then the share price made double-digit gains
Surely SGH were aware of this and did not fly in blind

In this respect an interesting read http://www.investopedia.com/articles/analyst/030102.asp

The catalyst for this sudden depletion in the share price appears to be based on a lone announcement by the British Government re third party claims and pending inquiries into the accounting practices consequently the shorters jumped in creating market panic

I am a substantial holder in SGH and have managed to average down to a respectable price and will be looking for an out with profit in the coming monthsNext week will tell the story
It is not a sinking ship yet and yes I do have the life jacket on

If this was a substantial holding for you I would like to know what risk management you had in place.

So what if their is short sellers or others manipulating the share price blah blah.If you had the right strategy to get out it does not matter obviously you did not.

I just took a look at a weekly chart of the stock and anyone who rode the stock price up to $8 had plenty of time to get out before this chaos.

Their was plenty of exits to show that something was not quite right with the company and I do not need to read any balance sheets to see that ,the chart clearly showed it was time to get out at least in the short term and then waited to see what happens and if everything turned out to be ok you could have bought back in.

I for one would certainly not have averaged down, that is just plain suicide in my opinion.
I hope it recovers for you but do not see it at the moment.

 

[qldfrog]

gambled a minimal allotment below 70c last week.
decent average down?
.xmas spirit might cheer me up.But that firm's directors should have to take responsability.Why is it that australian companies are such suckers when it come to O/S investments.Remember NAB or Telstra forays O/S

 

[Wysiwyg]

Very soothing announcement out today with complete ignorance of recent price action. Like it didn't happen ... did it?

 

[Risk Manager]

Short squeeze is coming.