We are usually guided by our shared experiences and 2 of my most relevant once over the last 2 years are Santos (option a) and Bellamy’s; (option b)which were both highly shorted like us (external factors as the rational).
Without specifics, there are 3 potential logical pathways
Option A - Like Santos, soon someone will realise how undervalued we are and will eye a takeover/ stake/ merger. Regardless of what we do with the offer, the valuations shall improve, hopefully by a decent percentage
Option B- Market realise the whole China manipulation is a noise not dissimilar to licence drama last year for Bellamy ( the cloud and the clout both don’t last for ever) and one major new buyer arrives raiding the highly under valued stock - kaboom.. $3ish to 20ish in a trance.
Option C : Essentially what happened to us last year, sentiment shifted encouraging Bulls to party along with LIT index fund and with the deals behind GXY, catapulting it to new heights.
My preference is for Option3 , and hopefully we are on our way
GXY Price at posting:
$2.52 Sentiment: Buy Disclosure: Held
