I am suggesting a property writedown of 20%, walking away from the JV and a capital raising. I think that would be about the worst that could happen to the company and us shareholders
Your assuming that things may not get that bad. that property valuations may not drop 10% and there is therefore no need to walk away from the JV or do a capital raising.
You obviously have a more optimistic view of things than I. But I tend to be a pessimist and expect the worst.
Hopefully you are absolutely right and I am absolutely wrong. Because if things go according to the GPT plan, then the shares are way undervalued and we will both make a motza.
In anycase, by me taking such a view and we at least know what the downside might be for this company
$1.57 after a capital raising effectively lowering the price we bought in at.
eg bought at $2 plus $1...bought in price of $1.50
anyway Rene Rivkin who taught me about investing through his report always used to say buying shares was a risk reward matter. Always look at the downside risk first then if you can handle it look at the up side.
The downside I think will be $1.57 (my scenario) and the upside will be in the vicinity of $3.50 (your scario)
GPT Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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