Pete You are only seeing half the story in your analysis of Clive and Gina.
1) Anyone that has their own personal funds invested in anything would want it to go well. I have my own company and it is turning a profit. Directors given shares are not considered having their own money invested! 2) Clive and Gina companies are profitable....GBG is not!
3) While companies on market can be pushed down by Bots, CFD's, Options , voodoo and witchcraft sorry getting carried away now. They can also be pushed to stellar heights by spruiking, over promising , people eagerness to get on board and by share availability. This now it seems was the case with GBG .
4) Your saying that good companies can be manipulated to rock-bottom prices then taken over is possible but your forgetting the force driving the share price up also. if the company is " profitable" and I'll use NAB , TAH,WES or even BHP as an example. When a company pays dividends it will be driven down to where the yield becomes a supporting factor for the share price then it becomes a BARGAIN These companies have gone up between 10 to 30% over the last 12 months ,BHP is down due to IO price. When you compare GBG to these companies , it is not a "Great company"
5) Your also saying that GBG is not a spec company but a producer. Yes right, but its shipping low grade ore, battling a high OZ dollar ,falling European stability, and finally a high proportion of debt , an ocean of shares and capital RAISINGS that have occurred, combined with a share price of 1/10th it's cost and crazy talk of expansion,low funds. Add to all of this the trouble with not paying AUSGROUP .....court action possible, as if there isn't enough going on at GBG.
I have gone down 50% on this company so I'm bitter yes, but hey the wooossshers may put a better case for GBG than me.
Finally all the above is common sense ,but we ignore it at our peril. I'm only going to buy companies making profits and paying divs , if you got to stress like this .....then it's too much like a job! Only invest small amounts in spec companies, you do otherwise at your peril.
CONFUSED
GBG Price at posting:
16.0¢ Sentiment: Sell Disclosure: Held
