Shorters serve a purpose in the market, correct over valuations. There is no way GXY is worth anything north of $2 in the current climate. The share price in $4.00 territory had over shot.
My top valuation in my opinion is $1.46 and low is 76c. Is SDV worth something or a liability?
Shorters can get just a bit too greedy, best example is NUF this week, out of the blue sell assets and the price shot up from $4.40 to $6.90ish in the first hour of trade. It came well back at the end of the day to $5.50ish. Shorts were scrambling to cover. Its sitting at $6.49 at close on Friday.
The company did not announce any new deal or customers, just sell assets they owned and owned at $4.40, the shorters were undervaluing the company.
I believe thats the case now with GXY, thats not to say it wont drop alot further. But the greater risk taking is now more on the shorts side.
I like heavily shorted shares, i watch and wait. Made good coon on NUF though not without some palpitations when it was abt $3.70
Current Enterprise value of GXY is abt $125m Its looking cheap. A TO offer wont happen in my view as i dont think they would get the numbers to accept. So Simon needs to up with a plan that will be the catalyst or quick turnaround in spod prices.
One adavatage of Li plays all being down is A40 valuation is becoming less. I dont think any bank would lemd to a DOCA proposer so they need to have cash. GXY gas cash.
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