Is Slater & Gordon going Broke?

Discussion in 'Living Room' started by RPI, 27th Nov, 2015.

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  1. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Uncertainty over Slater and Gordon's future as share price dives

    These guys have gone from a share price up around $8 only 6 months ago. Under $1 now and their debt/equity and cash positions are looking scary.

    As the first law firm in the world to list and because I know quite a few people who work there, I really hope they survive.
     
    RPI, 27th Nov, 2015
    #1
    Bran likes this.
  2. The Falcon

    The Falcon Well-Known Member

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    They will survive, but expect a major capital restructure. Management / board likely wont survive....
     
    The Falcon, 27th Nov, 2015
    #2
    saki likes this.
  3. larrylarry

    larrylarry Well-Known Member

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    I recently bought more shares...
     
    larrylarry, 27th Nov, 2015
    #3
  4. Azazel

    Azazel Well-Known Member

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    Interesting.
    I hadn't heard anything about this yet.
     
    Azazel, 27th Nov, 2015
    #4
  5. The Falcon

    The Falcon Well-Known Member

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    look away now then. Its being hammered today. I think that there will need to be a large dilutive capital raising. Down to 71cps.
     
    The Falcon, 27th Nov, 2015
    #5
  6. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Yeah that is the other side of the coin if they do survive their price today is cheap

    They guys I feel sorry for are the former principals of recent acquisitions. If you got $5m for your practice, $1m cash and $4m in shares, then as at today the value you got for your firm was $1.5m
     
    RPI, 27th Nov, 2015
    #6
  7. Azazel

    Azazel Well-Known Member

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    Ouch, that would suck.
    Hopefully some of them had the foresight to take the cash.
     
    Azazel, 27th Nov, 2015
    #7
  8. larrylarry

    larrylarry Well-Known Member

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    I just saw the graph on ASX for SGH. Ouch!!! Won't tell Missus.
     
    larrylarry, 27th Nov, 2015
    #8
  9. larrylarry

    larrylarry Well-Known Member

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    I shall not panic. The business model depends on a lot of personal injury work and now legislative changes in UK creates a huge damage.
     
    larrylarry, 27th Nov, 2015
    #9
  10. willair

    willair Well-Known Member Premium Member

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    just a simple chart..
    [​IMG]
     
    willair, 27th Nov, 2015
    #10
  11. Mombius Hibachi

    Mombius Hibachi Well-Known Member

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    I bought my Blackmores shares at $27. Yee yee!
     
    Mombius Hibachi, 27th Nov, 2015
    #11
  12. larrylarry

    larrylarry Well-Known Member

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    Thanks. Just told Missus. She brushed it aside and said it's just another day. :( Went out for a walk and got a regular latte...with John Symond next to me in his casual. Was so tempted to ask him questions...
     
    larrylarry, 27th Nov, 2015
    #12
  13. Biz

    Biz Well-Known Member

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    I certainly won't be crying if a compo lawyer goes under.
     
    Biz, 27th Nov, 2015
    #13
    fullylucky, MikeyBallarat, gman65 and 6 others like this.
  14. willair

    willair Well-Known Member Premium Member

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    When i used to pay for share newsletters there was one said blackmores was going to be bigger in price range the bhp when they were in the 5 bucks entry range ,then they started a massive upswing,but well done at 27bucks even at that price no one knew..
     
    willair, 27th Nov, 2015
    #14
  15. Azazel

    Azazel Well-Known Member

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    Crikey, off the cliff.
    Might be a good time to buy if they manage to stay afloat.
     
    Azazel, 27th Nov, 2015
    #15
    larrylarry likes this.
  16. willair

    willair Well-Known Member Premium Member

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    Just look at the trading volume it's massive,and the face price is getting a wipeout..
     
    willair, 27th Nov, 2015
    #16
  17. The Falcon

    The Falcon Well-Known Member

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    Not a hard sell for the UK Govt to stamp down on the ambulance chaser industry...who would have thought?
     
    The Falcon, 27th Nov, 2015
    #17
  18. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Under Escrow when you are bought out so there tends to be 3 components]
    1. Cash Upfont
    2. Shares Issued now but can't be sold (escrow)
    3. An earn out comes in a year or 2
     
    RPI, 27th Nov, 2015
    #18
  19. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    sub 70c now. Not good
     
    RPI, 27th Nov, 2015
    #19
  20. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    They are also the largest conveyancing firm in QLD (through acquisition of Conveyancing Works in 2011). Circa 15% of the market.
     
    RPI, 27th Nov, 2015
    #20
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