Last thrursday day when i left the office 1.30 pm it was trading at 43 Today it closed at 42. 1 cent difference alot of the small caps got smashed hard today Those buying on Thursday arvo may be exting now as any wnet buying GDO, they were buying a stock flying on high volume
The company really likes the asset, if they are right about the god/uranium synergies they have bought an asset with production bigger than ME and with the smae margin (medium term) at less than 50% of its value
Thye have bought an asset with an NAV of 500 million at half price
The company will still be generating 70-75 million free chas this year 100-120 next year 120 plus the year after and this is assuming not a cent or earnings for new asset which the company believe will be a revenue contributor very soon and a big revenue contributor in the medium term
The story is very much intact. I beleive the acquisition is a good one and makes sense.
GDO Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
