A New Dawn, page-343

It is a controlled exposure. There are indicators that offer a balance of probability in favour of above market returns. First, I don't see it as game given the past. An absolute essential rule is to look to the future, the past has no bearing on whether today is worthy of consideration. Past losses are sunk and of no relevance. Second, it would appear some are confusing equity value with market value and that could cloud judgement. Independent assessed equity value is not flash (but still the high-end is not too far behind book value) but it needs to be considered in the context of the type of business with limited hard assets. Third, there is a critical time period in a turnaround where it could falter, that time has past. Fourth, the underlying model is proven to be profitable when unencumbered by crippling debt, widespread disruption, and the constraints of integration. Fifth, there is evidence of interest in the sector. Sixth, the majority owners will undoubtedly seek the best return, by default the minority get their slice. I think revenues will improve a modest 10% on previous 1/2yr to $106 and further inroads to expenses giving a GP around zero. As for NP that depends how they treat a number of items. Op Cash/Flow a slim positive $1m.

The story will not be the headline, it will be stabilisation and signs of growth in core areas. I expect some interest in the company coming from elsewhere within 12 months

There are plenty of better risk reward investments out there. I'm interested in S&G because I know the company reasonably well and it is more of an interest than a sure fire winner. Nevertheless, a sensible approach will pay dividends I feel (taking into account opportunity costs) - comparable to others in the same asset class.