Hi all, I posted this on the SHJ forum but its worth repeating...

Hi all, I posted this on the SHJ forum but its worth repeating here as I really can't understand the share price of SGH:

Hi, just done some quick analysis on both companies. I really can't understand the current increase in the SGH share price following their results announcement, at least compared to SHJ.  SHJ has lower revenue but seems to be operating more efficiently, has lower debt, more WIP, is PROFITABLE, paid a DIVIDEND, and yet still has a lower market cap?  Someone must think SGH is going to significantly turn the operational performance around.

	Column 1	Column 2	Column 3
0		31-Dec-17
1		SHJ	SGH
2		$'000	$'000
3
4	Revenue	88,231	96,295
5	Employee expenses	45,336	60,982
6	Revenue per dollar of employee costs	1.95	1.58
7
8	EBITDA	16,477	(8,662)
9	EBITDA Margin	19%	(9%)
10
11	NPAT	7,826	(21,191)
12
13	Operating cash flow	4,879	(798)
14
15	EPS (cps)	4.52	(3.16)
16	Dividend (cps)	1.00	-
17
18	Working capital balances:
19	Receivables and unbilled disbursements	92,432	85,264
20	WIP	247,610	237,140
21	Trade creditors	(67,730)	(57,092)
22
23	Debt (Borrowings)	(72,359)	(117,138)
24
25	Share price	0.68	2.30
26	Shares outstanding	173,161,812	69,527,235
27	Market capitalisation	117,750,032	159,912,641