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SGH - Slater and Gordon

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

  1. Rainman

    Rainman

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    This is an object lesson that is priceless.
     
  2. DeepState

    DeepState Multi-Strategy, Quant and Fundamental

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    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.

    2015-11-27 22_22_05-Snake dies after consuming large porcupine _ KHON2.jpg
     
  3. shouldaindex

    shouldaindex

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    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.
     
  4. fraa

    fraa

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    What is this other place ? You talking about hot copper ?
     
  5. skc

    skc Goldmember

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    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.



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

    One of my favourite characters from the Simpsons.



    Beautifully put. Can you come up with another Shakespearean quote when ASIC gives them the all clear... yet nobody cares anymore?
     
    Last edited by a moderator: Dec 30, 2016
  6. Ves

    Ves Beyond Good and Evil

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    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. :)
     
  7. Rainman

    Rainman

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    Yes I can.

    The rest is silence...
     
  8. McLovin

    McLovin

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    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"
     
  9. Klogg

    Klogg

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

    Rainman

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    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.
     
  11. Risk Manager

    Risk Manager

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    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.
     
  12. Rainman

    Rainman

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    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.
     
  13. Stratagist

    Stratagist

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    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
     
  14. Rainman

    Rainman

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    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.
     
  15. skyQuake

    skyQuake

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    Proof?

    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

    What is your life jacket? stops?
     
  16. McLovin

    McLovin

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    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.
     
  17. Triathlete

    Triathlete Keep it Simple..!

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    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.
     
  18. qldfrog

    qldfrog

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    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
     
  19. Wysiwyg

    Wysiwyg Everyone wants money

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

    Risk Manager

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    Short squeeze is coming.
     

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