Is Slater & Gordon going Broke?

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

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  1. Foxy Moron

    Foxy Moron Well-Known Member

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    Oh the delicious irony…..Slater & Gordon are themselves being subject to a class action from rival litigation firm Maurice Blackburn Lawyers. According to their own marketing MBL are Australia's leading compensation and social justice law firm, with the slogan “We'll get you everything you're entitled to”.
    Meanwhile Class Action specialists ACA Lawyers are also circling – they didn’t seem to have a catchy slogan on their website but I’m sure they are also very earnest in their quest for justice.

    Stay tuned for Australia’s fairest ever bun-fight!
     
    Foxy Moron, 29th Jan, 2016
    #41
  2. Azazel

    Azazel Well-Known Member

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    For what?
     
    Azazel, 30th Jan, 2016
    #42
  3. Phantom

    Phantom Well-Known Member

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    Phantom, 30th Jan, 2016
    #43
  4. Azazel

    Azazel Well-Known Member

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    Cheers @York
     
    Azazel, 30th Jan, 2016
    #44
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  5. Coastal

    Coastal Well-Known Member

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    Shine share price went down by 70% yesterday ...the old overstating their earnings trick.
     
    Coastal, 30th Jan, 2016
    #45
  6. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Looks like more interesting accounting methodology was being used
     
    RPI, 30th Jan, 2016
    #46
  7. Coastal

    Coastal Well-Known Member

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    I hope they don't sell out their clients for quick settlements.
     
    Coastal, 30th Jan, 2016
    #47
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  8. Ted Varrick

    Ted Varrick Well-Known Member

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    Maybe Shine should bring Erin Brockovich back in for some assistance should the employees (or ex, which we'll find out by April 30-ish) of Queensland Nickel need some representation.

    That should earn them a bit of coin...
     
    Ted Varrick, 30th Jan, 2016
    #48
  9. tavinium

    tavinium Well-Known Member

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    Erring on caution when partner firms in these types of industries raise capital via equity markets.
    What exactly are they raising the money for? It's not as if the industry is capital intensive.
    Where is this money going besides the firms partners and directors?
    If they are spending on class actions and headline cases, what is the chance they will win these (track record) and when they do win how big is the payout to shareholders after partners, directors, staff and anyone else involved in the case have been paid?
     
    tavinium, 31st Jan, 2016
    #49
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  10. geoffw

    geoffw Moderator Staff Member

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    They were raising capital to acquire firm(s) in the UK. That is purchasing an income stream so would be very expensive. However the UK changed the rules for collecting from litigation (I think) thereby reducing the income steam substantially, partially causing the problems they find themselves in now.
     
    geoffw, 31st Jan, 2016
    #50
  11. larrylarry

    larrylarry Well-Known Member

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    Yes, as opposed to organic growth.
     
    larrylarry, 31st Jan, 2016
    #51
  12. tavinium

    tavinium Well-Known Member

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    In general, one could argue there is better value elsewhere in the market.
     
    tavinium, 31st Jan, 2016
    #52
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  13. Ted Varrick

    Ted Varrick Well-Known Member

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    Yes, but who has the courage to set foot into the mining services sector?
     
    Ted Varrick, 31st Jan, 2016
    #53
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  14. tavinium

    tavinium Well-Known Member

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    Healthcare, selected retail, maybe. There are still good businesses out there in all industries.
     
    tavinium, 1st Feb, 2016
    #54
  15. Ted Varrick

    Ted Varrick Well-Known Member

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    Ted Varrick, 3rd Feb, 2016
    #55
  16. Ozzie in Texas

    Ozzie in Texas Well-Known Member

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    The last time I posted on this thread, SGH was at around 70c. Price action is everything. Like any investment, it needs to prove its worth to you. Slater and Gordon is a stay clear until proven otherwise.

    I know these guys. I worked with one of their off shots/takeover/competitors years ago. Their current news and stock is no surprise. Their old school ways is reflective of their current price.

    As I said back in November, they are either a cheap buy or going bankrupt........and I won't take the bet until they prove themselves as an ongoing viable concern.
     
    Ozzie in Texas, 5th Feb, 2016
    #56
  17. Coastal

    Coastal Well-Known Member

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    I would not use any of the cookie cutter Mcdonalds law firms such as Slaters, Shine or Maurice Blackburn.
     
    Coastal, 7th Feb, 2016
    #57
  18. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Dropped to 26 cents on Friday before getting up to 38 cents. That means a market val of $136m with debts of $741m. Not looking good for them
     
    RPI, 5th Mar, 2016
    #58
  19. Azazel

    Azazel Well-Known Member

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    Ai yi yi.
    What are the repercussions for people who have cases pending?
     
    Azazel, 6th Mar, 2016
    #59
  20. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Well according to some financial advisers there is huge pressure on S&G to settle a large number of cases to get money in. If that happens then you would assume lower quantum. If they were to go broke then the individual law societies would allocate their files to other firms.
     
    RPI, 6th Mar, 2016
    #60
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