UK 14:41 Sunday, 4 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Slater & Gordon (SGH) shares fell another 17.46% today to just 26 Aussie cents. They were A$8 less than a year ago after it spunked $1.3 billion buying the Quindell fraud for reasons it still has not explained. The question is not IF the shares will hit ZERO but when? Is it it by March 31 when it has to renegotiate bank covenants it is set to breach, by June 30 ( year end), September 1 (when I reckon it is out of cash), or October when Auditors must sign off on its horrific FY accounts. Or never. You can vote now in our when does S&G hit A$0.00 poll? Deadline is 7 AM March 3rd.
Already a member? Sign in
• All premium articles
• Tom Winnifrith’s Bearcast
• Access to all the entire nearly 13 year archive
• ShareProphets Daily Newsletter
Cancel any time
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments
Claims Specialist
The real problem for S&G will come over the next few months when they lose staff who’s job is trying to settle claims and deal with new clients.
Without them they will not have the capacity to deal with WIP or new instructions – so how will they service the debt?
Remember on No Win, No Fee Agreements they do not get paid until the case settles (successfully).
The defendant insurers, who will be rubbing their hands with glee, have almost total control as to when they should pay S&G and my guess is that they will delay, delay and delay.
Drunken Sailor
The banks who backed this insane bid have red faces to avoid too. They will not pull the plug straight away and will back some renegotiation of terms, which will make it look like SGH has a chance. If the banks are smart (unlikely but always possible) they will get rid of the cretins on the board of SGH that did this and put in some real hatchet men who will not shy away from the serious pruning job needed to turn SGH back into a cash generative business. The chances of it ever making enough cash to pay off the debt are slim, but as long as they are able to service the debt and pay a bit back, the banks can spare their own blushes. However as the climate shifts against this sort of business, I still reckon 0p will be the eventual outcome.
Only a little while to wait until we see what the banks do decide. It must be a really great feeling to know your future is partially in the hands of a cretinous board but mostly in the hands of the sort of people who cause global financial crises time and time again yet they always manage to walk away with their fat bonuses intact, whilst the ordinary people pick up the tab.