My view is it will be a share buyback announced in Jan 2019! :D

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philipg

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19/10/18

16:26

Post #: 36190663
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Originally posted by ProCapitalism ↑

It's short sighted is what most holders would think.

I don't know much about shorting but as far as I know because the shares are borrowed before you sell them & you never actually owned the shares, if a company pays a dividend the shorter then owes that dividend money to whoever lent him the shares.

So if you short 100 shares & the company later pays a $1 dividend the shorter then has to pay the lender that $100.

What does this achieve?

Short term yes, the SP may spike as all the shorts cover because they don't want to pay that dividend. A squeeze happens more shorts cover, buyers show up then the SP hits $6.

Fantastic!!

Now what?

Reality sets in a few months later & everyone realises GXY is still at square 1!!

MC is the only mine producing, SDV still years away & GXY just blew $20, $30, $40 millions to all the short term traders in GXY who will now sell out & move on because they got their capital gains increase & a dividend payment to go along with it.

For the long term holders, you guess it, the shorts will pile on again & we will be back at $2.36 in 6 to 12 months achieving absolutely nothing IMO.

I still stand by my previous statements that GXY should keep the money to expand the business. If they want to return some value to shareholders in the short term, they need to complete a share buyback IMO.

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My view is it will be a share buyback announced in Jan 2019!

GXY Price at posting: $2.34 Sentiment: Buy Disclosure: Held
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My view is it will be a share buyback announced in Jan 2019! :D

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