There was no confidence in lasts weeks result re Renewables. The large Brazillian contract does not necessarily mean large profits. 'It is not what you do but what you get out of what you do'. ANI blew millions on its waste disposal ideas in Europe some years back (bought for A$1/2 billon) and HWE can tell us that all those many contracts do not always mean the profits just roll on in. Get the sums wrong then get blasted into oblivion. However, GRD's record is good. I have found management to always err on the conservative side. I have a great respect for them but we need to be aware that things can, and do, sometimes go wrong. Will the Brazillian contract get all the necessary qualified people needed to see it through ? Losing the divi is never a good sign and although GRD has cash in the bank and OGD to sell if need be, cash flow could be a problem. The rewards are there but so are the risks. OGD is GRD's baby and I doubt if they will put it out with the bath water. Hastings sold out to GRD - not a confidence vote either !! Patience is needed and remember to watch that cash flow.
GRD Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
