fool me once – shame on you. fool me twice...

Fool me once – shame on you. Fool me twice – shame on me.

So goes the old idiom.

I invested in GDN during the drilling of PB1. I got sucked into the hype and got in way over my head. For me it was an instant disaster (refer price chart 26/04/2007). Some questionable things took place during PB1 – curious price movements despite there being no announcement. But even with this and the casing hanger stuff-ups I was willing to give the management team the benefit of the doubt. So I held on for PB2 and along the way averaged down to about a third of my initial entry price.

So PB2 progressed and things seemed to be going great guns. Regular announcements, good gas shows, likely producer etc. Maybe PB1 was an aberration? Maybe management had learned from their previous mistakes? That’s also when GDN management turned on the PR machine in the form of the Proactive Investors advertorials. “As good as it gets” we were told. Some here questioned those statements and the bullish announcements. But I rationalised that the ASX and its strict rules would protect me from improper reporting or management practice. I was wrong on both counts.

So here I am sitting on a substantial six figure loss with no medium term prospect of getting out with my capital (and dignity) intact. But I am not angry. I hold responsible only my naivety and misjudgement, and I understand the nature of spec stocks. But I do have questions on reporting practices, and I will be asking them.

To those of you who saw the signals and sold out I say “well done”. I distinctly recall two events from respected posters who sold their holdings “mere moments from apparent victory”. Warnie out in PB1, and Raks out during PB2. Both had plenty to say on the way out the door, and I should have taken greater heed..

To those of you that continue to hold, I wish you all the best. I will hold for now but I will look for some kind of exit – perhaps in the mini run-up to PB3.

I conclude with a borrowed phrase from Tony Soprano “GDN: You are dead to me”.

Disco.



http://www.youtube.com/watch?v=eKgPY1adc0A