this stock is in traders hand, page-56

Why is GMG at the price it is:

For half year ended Dec 2008 total loss attributable to sharheolders (after all writedowns) was nearly $800m for the half! Going forward from this - a global recession still gathering pace and credit markets drying up. Add to this during that reporting period an equity raising of $956m and assets sales of $370m odd only half of which seem to have been completed. A distribution history of distributions paid from capital rather then income and inflated bubble like asset values now rapidly unwinding. Many investors were drawn to this company for its stable income and the security of real estate and they have every right to be angry as this company and many more like it overpaid for assets juiced their returns with cheap easy debt and paid there executives millions in bonuses ... until the music stopped. Rudd Bank now has to save them ie the taxpayer

SUre the price will be extremely volatile while the market tries to understand the company's balance sheet and there are great trading opportunities. But unless you think asset values are going to soar again by the printing of money and bailing out of failed companies it is hard to see how GMG can be regarded as a buy and hold investment. The smart money will be back once the balance sheet is sorted out if it can be. The IF is the problem Big equity raising or some sort of merger is the best case for this company,, I cant see how they can sell assets quickly enough in the current market.