SGH - Slater and Gordon

[McLovin]

Guidance update: No longer expecting to achieve guidance based on a worse H1 outlook. H1 was already bad before...!

For a company that requires confidence in management they've certainly done a good job ensuring they don't have any.

Guidance was so over the top they were either completely certain or this was going to happen.

 

[skc]

For a company that requires confidence in management they've certainly done a good job ensuring they don't have any.

Guidance was so over the top they were either completely certain or this was going to happen.

They are almost daring someone to engage them to file a class action against itself.

Luckily they could argue in their defense.... that nobody really believed their forecast anyway..

 

[Ves]

Luckily they could argue in their defense.... that nobody really believed their forecast anyway..

What about the old faithful over at Hotcopper?

I think they still believe the original forecast, in fact today's announcement is a massive positive according to some over that way.

 

[Rainman]

Who ever would have thought that management could be amateurish?

 

[McLovin]

What about the old faithful over at Hotcopper?

I think they still believe the original forecast, in fact today's announcement is a massive positive according to some over that way.

Lol. I went over and read some of the comments. It's just wishing and hoping.

Also this little tid bit this afternoon...

The corporate watchdog will intensify its investigations into Slater & Gordon, sources said, after the law firm shocked the market with yet another change to its earnings outlook.

Slater & Gordon's second downgrade in the past 18 days could also spark a class action, with rival firm Maurice Blackburn revealing it is monitoring its competitor.

Read more: http://www.afr.com/business/legal/s...res-plunge-21pc-20151216-glpkrs#ixzz3uZFG1OwW

Given everyone is about to go on holidays I reckon the class action won't be announced until Feb.

 

[Knobby22]

Who ever would have thought that management could be amateurish?

The company is run by lawyers, just like the country.

 

[Ves]

/slater-and-gordon-dumps-earnings-guidance-shares-plunge-21pc-20151216-glpkrs#ixzz3uZFG1OwW[/url]

Given everyone is about to go on holidays I reckon the class action won't be announced until Feb.

Looks like everyone is circling around SGH now.

I'm not sure how much "added beat-up" AFR is doing in this case, but ACA Lawyers are saying they are investigating a potential class action now too (as well as Maurice Blackburn).

Some small Sydney law firm also filed an urgent court claim against SGH fearing they are insolvent and will not make what sounds like a payment owing as part of SGH's acquisition of their firm?

http://www.afr.com/business/legal/s...action-amid-insolvency-claims-20151218-glqpag

 

[Rainman]

Looks like everyone is circling around SGH now.

Whether an action is launched against SGH and whether it succeeds, SGH deserves everything it gets. The performance of management has been absolutely appalling . The whole board should be sacked. They are not fit to oversee a pub raffle.

 

[So_Cynical]

Whether an action is launched against SGH and whether it succeeds, SGH deserves everything it gets. The performance of management has been absolutely appalling . The whole board should be sacked. They are not fit to oversee a pub raffle.

Looks like it's on, i was going to sign up but they appear to only be interested in shares bought between 1 April 2015 to Wednesday 16 December 2015, counts me out.

If you purchased SGH shares in the period from Wednesday 1 April 2015 to Wednesday 16 December 2015 (inclusive) then we encourage you to register your details with us in order to get the best legal representation possible should a shareholder class action ensue.

https://www.mauriceblackburn.com.au/current-class-actions/slater-and-gordon-shareholder-class-action

 

[McLovin]

Sooner than I expected. The delusometer on the other forum is about to explode. Stephen Long from the ABC is trying to get an aggrieved shareholder for a story he's doing tonight and some punter asked if he'll also interview a shareholder who is happy with the price fall because it gives him the ability to buy more.

God Lord.

 

[qldfrog]

just registered

 

[notting]

"Clearly your honor this case is a beat up.
There are a wealth of savvy investors out there who are very happy with our performance - case in point -

some punter asked if he'll also interview a shareholder who is happy with the price fall because it gives him the ability to buy more.

such sophisticated investors are also very happy with our disclosure practices for the wonderful opportunities we have created for the wise and prudent punter.

In light of the above evidence your honor, we feel this case is a mock up, based on irrational populist, emotional responses being taken advantage of by our competitors, the accusations hold no basis in fact and there for request an immediate dismissal and a recommendation that the plaintiffs be requested to fund costs and purchase more shares. Clearly this would generate the fairest outcome for all and waste no more of the courts time.

 

[skyQuake]

Looks like it's on, i was going to sign up but they appear to only be interested in shares bought between 1 April 2015 to Wednesday 16 December 2015, counts me out.



https://www.mauriceblackburn.com.au/current-class-actions/slater-and-gordon-shareholder-class-action

What if say you bought stock to cover shorts? Do you get to participate?

Sooner than I expected. The delusometer on the other forum is about to explode. Stephen Long from the ABC is trying to get an aggrieved shareholder for a story he's doing tonight and some punter asked if he'll also interview a shareholder who is happy with the price fall because it gives him the ability to buy more.

God Lord.

If you can take it with a grain of salt its hilarious reading. 100% prem drama

 

[McLovin]

What if say you bought stock to cover shorts? Do you get to participate?

I assume you're being tongue-in-cheek, but no, you would need to show loss.

If you can take it with a grain of salt its hilarious reading. 100% prem drama

I think it's bloody fantastic comedy. I've seen everyone, except SGH management, get blamed. ASIC, shorters, super funds, hedge funds, the AFR, auditors, SFO in the UK. If you wanted to study the psychology of investing I reckon this is a great place to start.

Tonight's edition is suing Fairfax for leaking the fact ASIC was probing SGH, back in June. There are even suggestions that Maurice Blackburn should be starting a class action against Fairfax and ASIC not SGH. Good luck with that.

 

[qldfrog]

Indeed, le level of self denial...so my registering for the class action..come what may

 

[Triathlete]

I find this saga of SGH so hilarious.

It seems everyone wants to blame the company for their losses but what they should also be doing is taking a long hard look at themselves and their investing or trading style.

We have seen the same thing happen with companies such as Forge group, ABC learning etc

The one thing I certainly never do is believe everything you read in a report and to me my chart is my insurance policy if something is not quite right inside the company then it will certainly start to show up much sooner in a chart then waiting for an announcement or a half yearly report etc.

Looking back at SGH for those that may have ridden the stock to $8.07 they had many opportunities to get out of the stock, $7.16 a Dow exit on the daily chart, $6.85 a 15% stop loss from the high and should have definitely been out by $5.76 for a 28% move down from the high.

I guess some people are not as knowledgeable and sophisticated as they think they are....

 

[So_Cynical]

We have seen the same thing happen with companies such as Forge group, ABC learning etc

The same thing happened as in all 3 stocks fell heavily, Forge and ABC went under laden with debt, SGH not so...a little silly to lump them in together as the same thing didn't happen at the business level other than stupid decisions were made, that happens a lot anyway, BHP, Santos etc

 

[galumay]

I guess some people are not as knowledgeable and sophisticated as they think they are....

*sigh*

 

[Triathlete]

The same thing happened as in all 3 stocks fell heavily, Forge and ABC went under laden with debt, SGH not so...a little silly to lump them in together as the same thing didn't happen at the business level other than stupid decisions were made, that happens a lot anyway, BHP, Santos etc

I take your point....but regardless of either debt or other issues there was signs that not all was as it seems with this company.

As for being silly lets take a look at Forge group...Two of the countries leading Fundamental investment advisory firms had this company as a buy at the time. Here we have them charging for their services so their balance sheets was obviously good at the time but having a look at their chart showed that the view was not being backed up technically and of course a few months later they were out of business.

I will say it again your chart is your insurance policy.

We all know that it is human behaviour that people do not want to be wrong so they hold on for the turnaround which may or may not happen.

Better to cut your losses and be ready to fight another day then watching your investment being wiped out.

It is just a view nothing more...

 

[skc]

What if say you bought stock to cover shorts? Do you get to participate?

I assume you're being tongue-in-cheek, but no, you would need to show loss.

I covered my shorts too early. If I knew about their troubles I wouldn't have covered my shorts. I suffered significant lost profit. I think there is definitely a case for a class action by the shorters.

Also, why is the class action only available for people who bought during April to Nov? Surely if I hold SGH shares, I make the "not selling" decision based on management disclosure as well...

Tonight's edition is suing Fairfax for leaking the fact ASIC was probing SGH, back in June. There are even suggestions that Maurice Blackburn should be starting a class action against Fairfax and ASIC not SGH. Good luck with that.

May be the ASX should be sued for allowing trading in SGH... without ASX surely the share price couldn't fall.

The same thing happened as in all 3 stocks fell heavily, Forge and ABC went under laden with debt, SGH not so...

SGH is laden with debt. All $700m against annual cashflow of <$50m. I don't think SGH will exist in it's current form by the end of FY16 (if not earlier).

I will say it again your chart is your insurance policy.

You can either be really good with analysing company fundamentals (so you are the person who created the chart pattern that others are following), or you can be good with your charts. What most people do however is that they are no good with analysing fundamentals and they don't respect the chart. Add on top of that... being emotional, ignoring position sizing, applying silly logic, relying on hope and luck, then blaming others.

By and large... applying silly logic is often the funniest.

"I am buying because, SGH has done heaps of due diligence in its acquisition". Thereby implying that no large acquisition ever fail.

"I trust management. The CEO must be confident in achieving the forecast: his head is on the line if he doesn't deliver". Thereby ignoring the fact that CEO's often get fired for failing.

"I am not selling because some hedge fund secretly wants to buy my stock at a cheap price".