Interesting discussions. Somewhat more high-brow than some of the other shares I've been following.
Despite losing a considerable sum on SGH, I also believe there is a future for this form of legal enterprise.
Whenever questions are asked about the level of service provided by employed legal staff, I reflect on a visit to the hospital where all of the medical staff are employed.
Further, many years ago my then GP moved his practice into a corporatised medical practice. His reason for this is that operating a small practice was too much work outside of the 'real medicine'. Many people are happy doing what they like for a reasonable reward.
Those who point out the reasons for failure may be missing the reasons for success. Certainly, this form of law practice cannot be 'great' at everything but success ( ie profit ) can come from being good at the profitable things.
How many legal graduates actually get to the 'partner' status? What do they have to invest in time and effort to achieve that privileged position ?. Many might see the opportunity to receive bonuses in the form shares as a way to become part of the success of the company.
I see this a counter-cyclical investment at a time when our economy will soon be facing some 'challenges'.
SHJ Price at posting:
69.5¢ Sentiment: Hold Disclosure: Held
(20min delay)
