SGH 3.18% 81.0¢ slater & gordon limited

Motley Fool article on SGH, page-3

  1. 1,226 Posts.
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    denbo - I held Slater & Gordon shares previously.  I am interested to see whether Australia's first listed law firm stays in business.  The business model, and treating WIP as profit for accounting purposes seems questionable.  

    I think Slater & Gordon is a very good business.  Unfortunately, it has been let down by poor management.  The Quindell acquisition, and the huge amount of debt taken on, is what has brought Slater & Gordon to its knees.  That was a management decision pure and simple.  The actual Australian business is very good. If Slaters had continued with smaller acquisitions the SP would not be under 30c.

    I hope Slater & Gordon does survive.  I am just pointing out that there is considerable risk buying shares, even at this price.  

    The entire board of Slater & Gordon should resign.  The destruction of shareholder value has been horrific, and is the opposite of what management are supposed to be doing - ie creating shareholder value.  I am sure the board of Slater & Gordon mean well, but they seem to have been completely out of their depth when it comes to making a major acquisition and taking on huge amounts of debt.  

    If companies like NAB can't get it right, with all of their resources, why would a newly listed company like Slater & Gordon succeed (at overseas expansion)?

    The word is hubris.  The board of Slater & Gordon became filled with hubris.

    hubris
    ˈhjuːbrɪs/
    noun

    1. excessive pride or self-confidence.
      "the self-assured hubris among economists was shaken in the late 1980s"
      Column 1 Column 2
      0 synonyms: arrogance, conceit, conceitedness, haughtiness, pride, vanity, self-importance, self-conceit, pomposity, superciliousness, feeling of superiority; More
      Column 1 Column 2
      0    
      • (in Greek tragedy) excessive pride towards or defiance of the gods, leading to nemesis.
 
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Last
81.0¢
Change
0.025(3.18%)
Mkt cap ! $112.6M
Open High Low Value Volume
80.0¢ 81.0¢ 79.0¢ $4.803K 6.011K

Buyers (Bids)

No. Vol. Price($)
1 639 79.5¢
 

Sellers (Offers)

Price($) Vol. No.
80.0¢ 128 1
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