innovation, page-7

"Any explanations?"


I can only explain my own reason for selling, though I believe it is a view shared by many.

There is a significant wait for further progress, and the market has seemed reluctant to price in the achievements to date. It's times like these you sympathise with the investor who coined the phrase "the markets can stay irrational longer than I can stay solvent".

There need be no reason other than slow progress and a steep learning curve for the market to axe the SP. Why would this change? Surely the economy isn't going to be miraculously plucked out of turmoil any time soon, frothing traders into a speculative frenzy. Even in better times the market greeted progress with scepticism.

We know the heat resource is there. We know the rocks can be fractured and the thermal energy extracted. We know the depletion rate, as this is controlled by flow (in turn controlled by GDY). We know the majors are backing the project. We know demand is projected to increase significantly.

What else can GDY tell the market to make it go up before electron production?

Not much

Why should flow tests be a rallying point when investors are fleeing perceived risk like the plague? Why would SAV1 make a difference when we know the deep wells can be drilled, and we know the resource extends out for hundreds of kilometres (well beyond the scope of the current drilling campaign)?

I think there will be interest as the 1MW system approaches completion (with the requisite volatility as design faults are addressed), followed by a steady accumulation period as the ~$250M 50MW stage and ~$200M infrastructure to Moomba are commissioned. However, I can't see any fireworks until investors are shown that the electrons from these very deep, very expensive holes can be linked to the national market.

Would be pleased to hear alternate opinions as to why GDY will provide significant SP returns over the next few months. I took such an opportunity cost and dollar loss belting on this stock that I would hate to miss the eventual turn around (and current indications are still that eventual success is highly likely).

All that said I still hold in my SMSF, where short term price fluctuations are not so significant, and will continue to accumulate around the 65c level if possible.

Cheers





Geojac, you still locked in that shed? Another idea for your pile - keep the workers (hell, maybe even Innamincka) cool with adsorption air-conditioning. This is a great complementary technology for waste heat, which GDY will have plenty of. PTR is pursuing an entire project in Madrid on this basis. Good publicity and helps to expend the heat of the working fluid.