After watching GBE for a few months, I am in. I still cannot believe someone sold me some at 14.5 cents.
Current prices are a rare risk/reward. The last time I saw this sort of opportunity was in the GFC where some juniors were trading below their cash positions.
In GBE's case, they are are rare 'junior' in that they are sitting on a large pile of cash, have a quality project in a commodity that is in deficit and are backed by serious Chinese money. A fair price is at least double if not triple the current price, whatever your macro view of the market.
Even if there were to be a Europe-led crash, GBE would still be in a very strong position - to buy up distressed assets, to buyback their own shares... the cash gives them options, and the Niobium project, (and their other exploration) gives them a known growth path.
I just cannot see much downside at current prices when GBE is already WELL below cash backing, and have a valuable project that the Chinese value highly. This is a massive 'margin of safety' as Buffett would describe it.
This is a sleep easy investment. Buy it, put it in the bottom draw, and EXPECT significant growth from the current silly prices.
A no-brainer.
Yaq
GBE Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
