• Australian (ASX) Stock Market Forum

SGH - Slater and Gordon

Discussion in 'Stocks Q-Z' started by beatrice, May 21, 2007.

  1. beatrice

    beatrice Member

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    Any thoughts on the slater and gordon launch this morning?
    Will other law firms follow suit?
    I am thinking of jumping in at open.
     
  2. Ruprect

    Ruprect Well-Known Member

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    This one might take off on open.

    Make those apalling ambulance chasers rich. Just my opinion...no, actually its a fact. They are appalling.
     
  3. Broadside

    Broadside Well-Known Member

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    I wonder if Julia Gillard has any equity, she used to be a partner.

    I want to float a company Doowie Cheatem and Howe.
     
  4. greggy

    greggy Well-Known Member

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    What a twist. The so-called chardonay socialists have finally discovered capitalism. Known for being left-wing, they're now listing. Slater and Gordon has a good brand name as its very well known for the high profile cases that its taken on.
    DYOR
     
  5. Ruprect

    Ruprect Well-Known Member

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    I think Julia Gillard has way too much dignity to take part in such an offer. Hasnt been there for more than a decade as far as im aware, and she's on to better things now.

    And i think its sauvignon blanc socialists now, nobody drinks chardonnay anymore, except me.

    Sorry, back to the forum. Its good for slater and gordon partners, although im unsure what long term potential it has.
     
  6. Ruprect

    Ruprect Well-Known Member

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    From the Australian today. Good for the directors? Oh yes. Looks like Slaters and staff have kept over 70% of the shares on offer. And they are still in debt. Very curious indeed.

    Let's see if the talent floats too

    YOU can tell the top of the market has arrived when the investing public willingly give their money to lawyers.
    After Slater & Gordon's first, sensational day as a listed company, it might look as if this is the way of the future for the legal profession.

    But it's not. Law firms that are interested in attracting and keeping the nation's best legal talent will be unlikely to float.

    They might incorporate in order to more efficiently distribute profits to family members or retain earnings. But that is a long way short of raising money from the public in a float.

    A public listing is great news for the generation of principals that sells its equity. They become instant millionaires while retaining control of the firm.

    But for subsequent generations, it's poison. And here's why: five years from now, the last of the share sale restrictions on the Slater's principals will expire. They will then be free to cash in their remaining shares, take their millions and walk away.

    The firm will then be run by a generation of lawyers who will be forced to reduce their incomes in order to share the firm's profits with the investing public.

    For the generation of lawyers who sold the firm, that problem is merely theoretical. They will still hold plenty of shares and therefore a healthy dividend stream.

    But when they go, Slaters looks set to be mugged by economic reality. How long does anyone expect that the next generation of lawyers will put up with reduced incomes in order to keep shareholders happy? A nanosecond, perhaps?

    If the next generation at Slaters is as good as the current one, they could be partners at a traditional law firm where partners get to keep all the firm's profits without the complications of looking after shareholders.

    So five years from now, the big winner from the Slaters float might be that firm's arch-rival, Maurice Blackburn Cashman, which has rejected the option of listing.

    In order to prevent a flight of talent to MBC, Slaters will need to ensure that its profits five years from now are massively ahead of MBC's.

    Investors who piled into Slaters have a great deal riding on the success of its growth strategy - a primary reason for the float. But a close reading of the prospectus shows that the war chest is empty. After the float, Slaters still has short-term borrowings of $7.1 million, according to the pro-forma balance sheet. It plans to grow by blowing out that debt by about $15.4 million. Slaters might succeed. But then again they might not. Either way, the lawyers who sold the firm yesterday will still be in clover.
     
  7. Sodapop

    Sodapop Well-Known Member

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    So will they inititiate class action proceedings against themselves when/if they are accused of insider trading??? Good/guaranteed money...

    ;)
     
  8. Pioupiou

    Pioupiou Well-Known Member

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    Re: SG.5%H - Slater and Gordon

    Ruprecht,s post of 22 May 2007 is very thought provoking, and the germ of what he wrote should survive as a caution for investors in SGH in years to come. However, some four years have elapsed since then, so I wonder what people think now.

    I invested about $30K ($30,312) in SGH on 12 October 2010 at $1.684 a share, and at COB on 21 April 2011 I am 47.5% ahead on paper at a SP of $2.42. To hold or to run? That is the question.

    Volumes have seemed to increase from a very low base only months ago when it was not unusual to have no transactions, and there appear to be more buyers than sellers.
     
  9. Pioupiou

    Pioupiou Well-Known Member

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    Closed on 27/04/11 at $2.50 - my $30K+ investment of 12/10/10 is now up 48.5%, and there are still more buyers than sellers. Does anybody have a view on SGH?
     
  10. Pioupiou

    Pioupiou Well-Known Member

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    On occasions fairly large SGH (or at least large relative to SGH) buy-sell orders are executed. I suppose there are lawyers who have waxed fat on the basis of their SGH holdings and salaries, and who now want to enjoy their twilight years wallowing in Chardonnay. However, for every sell, there is an equal-value buy, so other folk are keen to get into SGH.

    What intrigues me is that recently there has bee a lot of Bot activity in respect to SGH, and I do not know if this is driven by folk who want to drive the price up as sellers, or the reverse as buyers. This morning (12/5/11) it looked like this:


    12:58:19 PM -- $2.430 -- 10 -- $24.300
    12:57:45 PM -- $2.430 -- 11 -- $26.730
    12:55:49 PM -- $2.430 -- 10 -- $24.300
    12:55:47 PM -- $2.430 -- 11 -- $26.730
    12:54:46 PM -- $2.430 -- 10 -- $24.300
    12:53:16 PM -- $2.430 -- 11 -- $26.730
    12:52:49 PM -- $2.430 -- 10 -- $24.300
    12:50:53 PM -- $2.430 -- 10 -- $24.300
    12:50:52 PM -- $2.430 -- 11 -- $26.730
    12:49:50 PM -- $2.430 -- 10 -- $24.300
    12:48:23 PM -- $2.430 -- 11 -- $26.730
    12:46:53 PM -- $2.430 -- 10 -- $24.300
    12:46:47 PM -- $2.430 -- 11 -- $26.730
    12:45:48 PM -- $2.430 -- 10 -- $24.300
    12:43:51 PM -- $2.430 -- 11 -- $26.730
    12:42:52 PM -- $2.430 -- 10 -- $24.300
    12:42:50 PM -- $2.430 -- 11 -- $26.730
    12:41:48 PM -- $2.430 -- 10 -- $24.300
    12:39:56 PM -- $2.430 -- 10 -- $24.300
    12:38:49 PM -- $2.430 -- 10 -- $24.300
     
  11. Bowlane

    Bowlane Member

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    Sorry I don't understand, but what do the 10 and 11 in your Column 3 represent?
     
  12. Pioupiou

    Pioupiou Well-Known Member

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    The 10 and 11 are the quantity of shares traded for each transaction. The first $ value is the price, and the second one is the quantity multiplied by the price - the total value of the transaction.

    These small trades are often used by brokers to mask a large aggregate trade so that the SP does not get pushed up too much. The brokers will use software to do this, hence the process is termed Robot Trading, or BOT for short. There a thread on BOTs.
     
  13. Pioupiou

    Pioupiou Well-Known Member

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    I hold 18000 SGH, which I bought late last year for $1.684 each on average. The SP is about $2.20 now, but it did edge up to $2.50 some months ago. I like the idea of a stock that does not get hit by economic factors like interest rates, exchange rates and business cycles. I believe the recent slide south of $2.50 was caused by shares coming out of escrow increasing the shares put up for sale, but this slide seems to have ended.

    At last somebody seems to have mentioned SGH ”“ to wit:

    Michael Heffernan, Austock
    BUY RECOMMENDATIONS

    Slater & Gordon (SGH)

    Australia’s only listed legal firm continues to progress in a quietly robust manner. Slater & Gordon represent a superior investment option among small industrial stocks in the current environment. Litigation is likely to be unaffected by a slowing economy.
     
  14. Pioupiou

    Pioupiou Well-Known Member

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    SGH is edging upward rather nicely - more buyers than sellers. It closed at $2.25 on Thursday, $2.31 on Friday and $2.38 today, Tuesday, 14/06/11 (Monday was a holiday).
     
  15. Garpal Gumnut

    Garpal Gumnut Well-Known Member

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    I've been watching SGH, and feel it may be due for a retracement to $2

    This is an old resistance line for the stock and should provide some support.

    I'm no Elliot follower, I can never even remember how many L's and T's are in his name, but from my old ATAA days, it seems to have completed a 1 to 5 and is now in an ABC, or a new 2 of a higher degree.

    It is getting buyers on low volume, but recent large holders are out for a profit as evidenced by the recent large vol bar ending on a low.

    It could also trend sideways for a range trade.

    Don't you love lawyers.

    In this climate a $2 target is reasonable.

    gg
     

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  16. Pioupiou

    Pioupiou Well-Known Member

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    Carpal Gumnut wrote "I've been watching SGH, and feel it may be due for a retracement to $2", and this is what has happened. On the fundamentals the SP should be closer to $3, and it may get there if the mood of the market sloughs off its negativity. Being a cautious bod, I'll stick to the halfway point of $2.50.

    Read today's positive wrap on SGH at:

    http://www.thebull.com.au/articles/a/22878-5-sold-off-small-caps-going-cheap.html

    I bought 18,000 late last year at about $1.68, so it has been a good investment.
     
  17. So_Cynical

    So_Cynical The Contrarian Averager

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    Did you sell any at the top? i like to take at least some profit to lock in gains/create free carry.

    ----------------------

    I brought in today after watching for more than 18 months and kicking myself i missed out the last time SGH was trading at around this level...SGH is my second legal stock as i own shares in IMF too, i like legal business, i like investing with lawyers.

    Safe cash flows, lots of repeat business and economy's of scale with SGH, still room for both organic growth and growth by acquisition...ok divi yield with potential for yield growth over time.

    In today at $1.76 ~ portfolio stock #24 ~ i brought today because i feel the SP is very close to bottom, the new lows this week after the market lows of past weeks should mean that the worst is over, and the Vioxx decision is now a week or so old.
    ~
     

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  18. odds-on

    odds-on Well-Known Member

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    What is going on with the SGH share price? It has been all over the show recently. Are there any technical analysts who would be able to enlighten me?

    I started purchasing SGH around Jan 2012 and my averaging down has turned profitable. I intend to offload once it starts trading around PE = 11.
     
  19. tigerboi

    tigerboi Well-Known Member

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    nothing to worry about as slater/gordon are appearing for me in my workers comp case

    then the common law suit v my employer...i intend to buy a large stake.so it will be about $3 after xmas...tb
     
  20. Pioupiou

    Pioupiou Well-Known Member

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    Well, that is at least a recent comment on SGH - which makes it novel. I think SGH is a turn-around stock in the sense that its management has stated that they are going to tone down acquisitions and focus on organic growth. This should improve various performance ratios, and make the stock less risky. It is not so much a turnaround as a refraction. We should see good signs when various reports are published for YE 30/06/2012, but it will take longer for more recent acquisitions to make their mark, especially the UK one.

    Perpetual has been taking a position, and that has uplifted the stock from a slump that it has suffered for a year or more.
     

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