Slater Gordon Holdings - SGH

**Joshuatree** · 26-11-2015, 03:11 PM

Thanks dobby. Youch.Hope it comes right for you buffett, def blood on the streets right now with this one. A local broker recently put a buy on it too with a price target above $3.

"Whilst the government's announcement was unexpected, the company believes that the scale and diversity of the Slater Gordon Solutions business in the UK positions it well to deal with the potential impact of any future legislative change," Slater and Gordon said in a statement on Thursday.

**ratkin** · 26-11-2015, 03:30 PM

Some amazing moves today, those buying at the bottom have doubled their money in an hour. Well not quite, but some big gains

**stoploss** · 26-11-2015, 04:01 PM

Originally Posted by Buffett Jr

The article has definitely rattled my confidence in the company.

I think it has some very important points, stating that the 30-40million cash deficit could be a big problem if it doesn't get turned around within the next 6-12 months. Since purchasing the UK business, they did take on a lot more debt to do so. I remember reading a book on Warren Buffett's purchasing criteria and he doesn't like to buy anything with debt:equity above 1.5 (e.g. 150million debt, 100million equity). SGH are hovering around this.

However, the company has stated that this is due to 'one offs' that aren't likely to re-occur going forward. Their forecasts for the full year and the fact that they aren't likely to make more acquisitions in the next 12 months and their focus is on reducing debt and making their current businesses more profitable is great news to my ears.

However, still in the back of my mind is that people will still continue to use lawyers. Technology won't change this fact. If I want a sale/purchase agreement, or to use an employment dispute lawyer, etc I'm likely to continue going to a company like SGH.

I originally bought in around the $2.60 mark and then increased my holding yesterday at $1.98.

I don't really see the company going bankrupt or into liquidation because of this. I genuinely think that the company with their consolidating and streamlining efforts since making the UK acquisition will come out a pretty decent company over the next 12-24 months.

A combination of the UK acquisition, the accounting issues and the ASX investigation, not to mention all this talk of short selling over the past few days have definitely caused a lot of fear in the market. I've always been contrarian and the old quote buy when there is blood in the streets I try to live by.

Well, there is definitely a whole lot of it in the streets of SGH, so if there is any time to buy into the company, now is as good of a time as any.

Jr, there is a good thread on Sharetrader I think started by KW about never buying in a downtrend . Well worth reading .
It is ok if you are Warren and you can keep buying all the way down until you effectively own the company . However this share can stay irrational and in a downtrend longer than you can stay solvent . Just because it was $ 3.00 does not make it cheap @ 2.00 or even 1.00...... h2s04 was I think pointing to the same thing , wait till all the bad news is out and they are in an uptrend .
There are thousands of stocks in the world , no need to dabble with the ugly ducklings .
I've learned from making the same mistakes myself hence the moniker S/L , you have to set them and get out ......

**bull....** · 26-11-2015, 04:16 PM

been in and out this one last few days, just got the bounce sold at 1.26 great trading

**Joshuatree** · 26-11-2015, 04:26 PM

How did you do that bull, gen int.Did you lose on the drop and buy back in and recover some or?

**Buffett Jr** · 26-11-2015, 04:29 PM

Originally Posted by stoploss

Jr, there is a good thread on Sharetrader I think started by KW about never buying in a downtrend . Well worth reading .
It is ok if you are Warren and you can keep buying all the way down until you effectively own the company . However this share can stay irrational and in a downtrend longer than you can stay solvent . Just because it was $ 3.00 does not make it cheap @ 2.00 or even 1.00...... h2s04 was I think pointing to the same thing , wait till all the bad news is out and they are in an uptrend .
There are thousands of stocks in the world , no need to dabble with the ugly ducklings .
I've learned from making the same mistakes myself hence the moniker S/L , you have to set them and get out ......

It's a good learning curve. I'm only 27 so would rather learn lifelong investing lessons now than when I'm 55 and have a wife and kids to feed.

I still won't be selling though. Give it 12-24 months and I think things will be back on track.

It just isn't much fun reading the business news each day with my largest holding being on the front page, saying it is "tanking"

**bull....** · 26-11-2015, 04:39 PM

Originally Posted by Joshuatree

How did you do that bull, gen int.Did you lose on the drop and buy back in and recover some or?

no i sell short, posted a sell on hotcopper way back amonst all the other loony posts lol buy back today and then long after drop then sell again at 1.26 no more now finish for day to hot

**NZSilver** · 27-11-2015, 09:43 AM

Wow, what a ride! proves there is never any guarantees, i did my due diligence on these guys and everything really looked solid. I decided to hold and still do, now the worst performer on my portfolio, it just seems to be one bad bit of news after the other - and it keeps building. Here is a good summation; Scary to think there Mcap is $300 mill, and the acquisition 6 month ago coast $1.2 Billion! Debt very high cf Mcap....

http://www.abc.net.au/news/2015-11-2...-dives/6978296