hws,
Let's wait and see what the annual report discloses. The auditors will be working overtime at GBG's expense to get their heads around the company's financial position. Last year it was out on 10 October 2012. IMO the release of the AR may be a catalyst for a negative move away from the computer driven line that seems to have been drawn under the GBG share price at the moment.
I hope people haven't forgotten that "KML is scheduled to make a principal debt repayment of US$63.3 million in November 2013". Another possible negative catalyst for the SP.
Question for any accountants out there?
As at 30 June 2012, GBG lists the value of its joint venture as being ~$654 million dollars.
Is there any point at which the directors, for accounting purposes, need to assess the likelihood that the carrying value of this investment will not be fully recovered in the event of ongoing and unforeseen problems with the mine ramp up, that is, how long can they reasonably go for before needing to write down the value of GBG's interest in the JV in their financial statements? Are they actually compelled by any accounting standards/policies to look at writing-down this asset in the near to medium term (ie in this years or next years annual statements)?
IMO a lot of people are holding or trading this stock on the basis of the assumption that a market cap of about $200 million is dirt cheap. DANGEROUS assumption IMO. IMO psychologically this stock is headed for disaster should the market cap fall significantly from here. People would start looking for the doors and windows, if any remaining big holders pulled the rug out from under the SP.
Can anybody name a short to medium term positive catalyst for the GBG share price at the moment, but please be honest?
SilentO
P.S. This is not investment advice, it is my opinion only. Do not rely on any of it. Please do your own research or seek professional advice to suit your specific investment needs before making any investment decision.
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