Cash Balance compared with Market Cap, page-10

stocks like this which have negative sentiment from past failed ventures need 2 things to turnaround

First they need to get to extreme levels of pessimism to get rid of even the most die hard of bulls and attract the attention of some deep value investors and trading around half of the cash backing value is about as bad as you can get and allows this process to occur which is why the stock the stock has spent almost a year below its cash backing with the floor only being found at around 3.5c which was probably a 60% discount to cash backing



Next you need to see some sort of change in direction or shift of focus or sometimes a market pick up in the sector you happen to be in. For GDY it was this from it HY report whichshows they have been on the hunt for a new clean green project for some time

"PRINCIPAL ACTIVITIES
The principal activity of Geodynamics Limited during the half year was focussed on accelerating our search for profitable growth investments in the clean technology sectors outside of geothermal developments.
Since flagging our new diversified strategy to the market many opportunities have presented in the areas of
Clean Energy Supply and Services, Efficiency and Storage and Cleantech Industrial Services."


Now combine the two old holders given up and out new holders coming in a 50%-60% discount to cash + refocus into a hot sector being clean energy = you get the perfect set up for a big rerating

Im not saying that they will be successful in their new venture but it will be hard to see the stock not at least doubling towards cash backing if they move into the green space


Similar set up to GBE last year in June July which had 5c of cash and was trading at 2c-2.5c
Graphite became hot again and it went from 2c to almost 7.5c
In their case they burnt through the cash and their grahite project didnt get far so back to lows however having bout at 2.5c there was a great ST gain knowing with momentum it should head back to its cash backing at least which was 5c and it did and then some






Anyway just my thoughts and why Ive been watching GDY and my hand was forced today when I saw the stock continually creeping up on volume with a very thin sell side