For all the monkey's running around indicating that they found a stock with 200% cash-backing, the following little gem might shed light on why GDY has been trading at a discount to cash,
"Celsius-1, Habanero-2 and Habanero-3 wells P&A in FY2015 reducing risk and liability for GDY
Habanero-1, Habanero-4, Jolokia-1 and Savina-1 to be P&A in 2016
P&A program and remediation estimated to cost ~$10 million with Origin to cover 30% and balance eligible for R&D tax expense with net cash cost being ~$4 million"
That is a very big liability, spend a whole lot more money, to end up with, ummm, nothing!
Few companies have perfected the art of burning money like GDY management.
RNE Price at posting:
3.1¢ Sentiment: None Disclosure: Not Held
