. On 30th June 2021, SD had some of it’s independent directors resign, had just sued KPMG, had no external auditors and had just given a press conference just days before. And all that time, it was a disaster for all SD stakeholders. Its workforce was also distracted by the issues.
Indeed, the BOD and management had their eye taken off the ball of maximizing shareholders’ value for some time, the issue surfaced 1st week of May 2021 and up 1st week of September 2021 before a sense business as usual set in. That is 4 months of lost and wasted time.
And what was lost in those 4 months? Potential contracts, financing and collections. A distracted workforce didn’t perform as expected. And the result is a very slightly lower than expected latest quarterly result (but not so when compared to the average consensus estimates, mind you!).
The question to ask is then, 1) Would SD perform better if there was no KPMG issue? Yes 2) Would SD have had the same cash situation if there was no KPMG issue? Yes 3) Would there be no re-rating of its debts and concerns of its repayment if there was no KPMG issue? Yes.
History tells us that SD being short of cash is normal from time to time, and always, there were plans to have it increased with old debts settled. It is not the first time. So what is the concern now?
And today is 30th September 2021. Taking a page off Evergrande, 1) Is SD still around? Yes 2) Are there market news of defaults of interest payments? No 3) Are there market news of defaults of principle payments? No 4) Are there market news of breach of financing requirements? No 5) Are there market news of picketing by vendors? No 6) Are there market news of legal action by vendors? No 7) Is there any regulator action on SD and its Principal Officers? No
So, there you have it. Its 30th September 2021. Business as usual. But for some, they revel in the past, let it be, for it is a place to soak their sorrows. .
Guys, this is only a temporary hiccup. There is no such thing as accounts not being signed off. It's just a matter of providing the information & confirmation of certain transactions. Sooner or later this will happen. It's not 1MDB.
True..there are always winner in up and down price.. same ratio as losers.
For SD, there will be a big percentage of losers. Thats my generalization.
OpporturnityHunter Huang, I believe some bought at 0.315 and sell at 0.45 something too, is that called loss ?? if you buy at 1.60, you may consider loss. So, depends on what price you bought leh, right 30/09/2021 8:50 AM
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
jwyap
838 posts
Posted by jwyap > 2021-09-30 09:14 | Report Abuse
i think it will green soon.