My rationale is simple. Whether it is good is open to discussion. I'm building a portfolio of value traps, I'm mean undervalued companies with long term potential. This one clearly fits. Although it has lost some of its value trap characteristics, I mean short term downsides recently by settling their class action, raising capital and replacing the Board that presided over its decline, it may be some time before we know whether new management (CEO incoming in February 2020) and new Board (recently installed) are any good or whether its operations are going the way of the dinosaur irrespective of their Board and management.
TGA Price at posting:
22.3¢ Sentiment: None Disclosure: Held
