Slater and Gordon

Slater and Gordon (SGH) is under $1 as I write on the news of changes to UK legislation affecting motor accident claims. Surely SGH has to be worth more than this, even with the Quindell and ASX enquires still to report. What is happening to this stock?

A: Thanks for the question.

Obviously, extensively covered in today’s media.

I am tempted to buy, but it will come down to the short sellers. Yesterday’s ASIC figures shows that 16.33% of the shares are short sold.

If they decide to cover, we may have seen the bottom. My sense is that they won’t yet – so perhaps a little lower first – so I am staying out for the moment.


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