Hi Quiktrade, Thanks for pointing this out. A small parcel of...

Hi Quiktrade,

Thanks for pointing this out. A small parcel of GDY has been in my bottom drawer for a little while and seeing how badly it was doing I though it may be a trade candidate soon. After looking at the chart I agree with your analysis and yesterdays candle inside was encouraging. RSI is showing way oversold so I'd also expect at least a small bounce. I'll be watching very closely over the coming day or two.

Fundamentally GDY are valued at $174m, as you say this is under the NTA given in last months report. $174m is very close to their cash ($91m) + plus plant and equipment ($77m).

The market appears to be giving no value to their achievements as far as exploration, development and the proof of concept trial - geodynamics accounts all this as about $100m and that is where the discount to net assets is occuring. If you are being conservative you might not count this as 'tangible', but it's still reasonable to attribute some value, making the company undervalued. Anyone care to offer any other fundamental insight?

Longterm success still seems a bit hazy, hopefully the backing of Origin and govt grants will continue to support development. If GDY gets too undervalued maybe origin will just snap it up? Either way I think 60c is a pretty safe long term entry point.

Cheers.