Have been watching GBG for some time now, and used to trade this stock to very good effect last year. Looking for a good point to re-enter.
Dow was down again last night and the world is in panic mode, which means irrational behaviour will over-rule any logically analysis.
It's always difficult to identify the perfect entry point, and most analysts will tell you bottom pick is fraught with danger. But,...with the final financing complete and production to commence within a year, and with all proceeds from production already identified in a pre-sold agreement, things are looking up. Growth plans are in place to utilise the now existing (and extensive) infrastructure for the new deposits already being explored in the local area.
Risk remains. However IMO the concerns to production and profit is well out of proportion to the current SP with too much emphasis being placed on the Oakajee port and rail problems. World issues are effecting demand, but remember that the ore to be mined is already sold.
SP is at least 50% of where it would be if the market was sane right now. It will be sane once again. Down side risk, could go as low as 40c = 20%. Upside using brokers analysis is somewhere between $1 and $1.50 = 100%+.
I will be back in today on the opening dip. Hold for one year (or sell half on a double).
There will be a time when people on this forum will discuss when GBG was sub 50....."wish I had bought then"!.
Good luck all....DYOR
GBG Price at posting:
48.0¢ Sentiment: Buy Disclosure: Not Held
