Jim your imagination is in full flow. Nice to see it gives me confidence you haven't fallen into complete senility yet.
I know market value is not the same as enterprise value that is exactly why I was questioning your misinterpretation of data. I'll keep it nice and simple just for you. You can thank me later!
Let's say you own a nice little shack with a handsome mortgage over it. And let's also assume you have $50k of cash lying on the kitchen table. Now let's say you sold the house tomorrow for $500k meaning you now have $550k (including the cash) but you left the cash in the shack. What would you have?
You would have $550k but lose the $50k which due to senility you leave on the kitchen table for new owners to pocket.
You walk away with $500k - that is enterprise value (market value including mortgage (debt) less cash left behind)
But you don't really have $500k because you owe the mortgager $200k. You pay the mortgager $200k plus a few other liabilities and you are left with $280k to go cruising round the world - that is Equity value.
Now let's see how KPMG valuation stacks up with the I/2 yearly. Net Assets (Equity value) were $90m divide that by 70m shares = $1.28 - not too far from KPMG high end estimate.
So the valuation figures you quote are referring to book value. That is what you would theoretically achieve if it closed up shop the next day.
If a company SP is trading below book value that either means it is a bargain or it means the market thinks there are serious issues around the corner. SGH is traing considerably higher than book value
Company's that trade higher than book value usually means the market thinks there is potential for net assets (book value / equity value) to improve. And that is why many company's trade and high multiples of book value - a sign the market believes its net worth will increase.
Conclusion: you are misleading readers by suggesting the value figures quote refer what the share price should trade at. Wrong. Those figures refer to a theoretical sale price as it stands at that point in time. A P?B multiply of 3 is not unreasonable provided there is belief in steady growth. A P/B of 3 as at 1/2 year would suggest a SP of $3.85.
Besides all of that, personally I think most people would be better off looking elsewhere for value. I have a modest investment more out of personal interest than earning a great return.
