It's more of a liability now with the situation in Argentina. The company is pumping money into an asset in a country that isn't stable. The Argentina stock market crashed almost 50% in one day. That's not exactly a sign of a stable economy or a country I'd want to have my primary asset it.
The $250m GXY has in the bank could be all spent on SDV and could be worthless afterwards. Or the value of the asset may not increase with the amount they are spending on it. For example, if they put $250m into developing it, the value of the asset may not increase by the equivalent amount - a negative ROI. I'm not saying that's going to happen, but there is a risk of it nonetheless. So while the market isn't placing much value on SDV at the moment, there's a risk that the money GXY have in the bank isn't spent on something that is value accretive .
GXY Price at posting:
$1.22 Sentiment: Hold Disclosure: Not Held
