gcr cheap play!, page-2

Not sure if I'd go for this one until the results of the share issue are known. Last week an issue offer was closed, offering every shareholder up to $5K shares at 5.7c. Now at last look I saw there were 1000+ shareholders, so if each took up their quota, that would be an additional (5000 / .057) * 1000 = 87million shares.

Considering there are currently 104million shares, this is a hefty dilution. Obviously not everyone will have applied for these shares, but we do not know until Tuesday when they come onto the market, how many extra shares there are.

With the current shareprice at around 7c, there may be a few who would like to take their 32% profit. I think there may be some downward pressure initially.

Of course if every shareholder purchase their lot, this would add $5mill to the bank, which would be very useful considering they appear to be quite short of cash ($400K as of October) at the moment (appear to have a few assets though).

Again I'd be waiting, it has moved up from lows of 5.2c around 3 months ago,and again a month ago, and I'd prefer to see the dilutionary effect on this one.

Cheers