I think you have summarised the for and against really well. I will be looking forward to the conf call later today.
If people look at the headline numbers short term we may be in trouble, but for anyone that is following the company much that was announced was to be expected. My view is that the results reflect the issues that we already know about in regards to MC. We already knew from the last report that there was going to be issues due to the floater road issue taking out half a quarter. If we have the same result in this quarter than I will be slightly concerned. However for now, as per my post yesterday the key going forward is the YOP and with that practically completed it helps us big time. The report makes it obvious that contract pricing will be down, but with the YOP volume will be up so revenue will be very flat. That in itself completely destroys most analyst forecasts.
In terms of cash on hand the company has been spending alot of money on YOP, drilling program and SDV and JB so that is reasonable. The company should be investing in its future at this stage.
Whatever happens short term it is ok in my view. As I have repeated in many posts my accumulation has not been the expectation to make it big short term. I see the accumulation as an opportunity to the end of 2019 and through 2020 as we head to 2021 when so many companies will be releasing vehicles and lots of them. That is when I will look back over the shoulder and say thank god I accumulated stock all the way back then.
Everything at the moment is a series of scattered jigsaw pieces, but with the report, news & company reports and within discussions on HC I can see that piece by piece the jigsaw is being completed, but as you get closer to finishing a jigsaw it gets easier and easier and a slow jog turns into a major sprint. I have the time and patience to buy now as I don't want to be competing when the sprint is on.
Should the buying opportunities present themselves, I look forward to making the most of them.
Think about your time frame, think about the risk and reward, think about the future. What you do after that is up to you!
GXY Price at posting:
$2.24 Sentiment: Buy Disclosure: Held
