analyst research reports, page-6

Never fear - It's analysts' sheer lack of vision that creates some of the best opportunities in the market.

At the start of last year, analysts were saying the we had reached the top of the mining boom. Spokespeople for the large investment houses were saying they planned to protect their clients by getting them out of the big miners. RIO was about $70 a share, BHP $24.

This time around I'm sure the analysts have correctly weighed up the market value of the drill, but have they really thought what will happen if GDY demonstrates in the next couple of months that it can generate zero-emissions baseload power in bulk?

Have they read through the Garnaut report and noticed the references suggesting the government support the construction of power lines to remote geothermal and solar sites. And that there are no plans to compensate generators of coal-fired stations, even though the report is pushing for tougher cuts than the 60 per cent by 2050 proposed by the Government.

How is that going to happen if coal, gas and the like are the only fuels that can supply us with baseload power? That report is being written at least partly with GDY in mind.

How much will a GDY share sell for if the company provides the Government with the only real-world solution to generating baseload power without burning coal, and its best real hope of meeting the emissions targets the government is looking for.

I don't know exactly how much, but considering the shares hit $2 when the drill was still on the ship last year, I doubt it will be $2.06 somehow. I'm willing to hold and find out.