You are exactly correct in your assumptions; this has been their approach and remains so, albeit the recent drop in share price will no-doubt fuel the importance of due diligence. Investors are now looking for the existing business to turn a health margin, further major acquisitions may be viewed as a touch too risky to favour even the most adventurous GXL share buyer at the moment. I am personally very surprised at the rapid drop in the price given the excellent results announced in March with no further announcements. Additional fear will have also been driven by the exit of two founding Directors, one of which sold a significant number of shares. I am of the view the business is in safe hands; albeit they are at risk of disruption from e-commerce sites such as Pet Circle. At the moment, GXL presents very good value; I have bought more and expect them to be back up over $8 at the next announcement but DYOR.
GXL Price at posting:
$6.36 Sentiment: Buy Disclosure: Held
