fire sale on, page-6

Punishment: share buyback is great idea. I even suggested they use approx $10-15 million to buy back 10% when it was around the 10c range but the fact it didnt happen confirmed that they have little interest in creating shareholder value even when below cash backing. I thought it made sense and if the largest holder didnt want to sell into buy back they would have owned another 10% of the business. At these prices it still makes sense given the cashflow strength

Stantrent: your prediction came true. well done. Is it worth less than 20c (probably not). Can the market push it there to shake latecomers into taking a loss (sure can). I am quite happy as although my holdings are taking a temporary hit my average purchase price on the bulk is around 10c and have been able to rebuy my sells much cheaper. I had to sell a swag a day or two back at 20 that I bought 19.75 and was spewing as I had to cover some overnight purchases I made on MGX and AGO. Anyway, good news was I could get them even cheaper today and made some money on MGX and AGO in the meantime.

Generally speaking, when we rose to 26.5 when AGO and others were pulling back, that was a signal that we were a little overbought in the short term which is why I sold a bit (despite my optimism) at that price hoping to rebuy cheaper. it was also conveniently 1.5c above 25 and now we are 1.5c below 20. We would have to be near the bottom now me thinks. Margins still remain juicy at the moment, market cap would now be $200 million which is about Cash & receivables level (I note the cash is probably currently $20 million higher than the last quarterly report) so high cash earning business for free again. I note that people tend to set stop losses after they buy and usually below a price point like 5% below 20c so i guess the stop losses were triggered today.

I remember last year in SLR when it went from 30+c to 25c for absolutely nonsense reasons. Lets just say, shortly after that it was approaching 50c and ran all the way to 75c six months later.

I do not believe it is unrealistic that GRR will pass 30 and go beyond this year as true value is not currently being reflected. We are still getting awesome AUD pricing so the cash just builds in the meantime. At least the annual yield is back over 5% based on current price.