gic or sgp ? , page-2

Rodvig,

Technically, I agree with you - which is one of the reasons I bought GPT in the first place. Early on [by early I mean shortly after I invested], SGP came along and acquired 12% - and all appeared to be cruising along nicely. A one point the buying activity around the SGP move took the stock up as high as $1.44 - which was considerable, given that it had plunged to lows of 0.60c around the time of the capital raising.

However, let me put myself in SGPs position for a moment. I would need to have stones of hardened granite to a) face my bankers right now and b) buy more of GPT given that I had just taken a bath of 80% or more on my recent 12% stake.

"Aha", I hear you say, "but this is what real investors do!!" - yes yes, but we aren't in a rational investing period - or else GPT wouldnt have fallen to the comical price of 0.25c to begin with! So, if SGP are remotely fearful that GPTs banks might not be there, I think that if I were running SGP, I'd fence sit.

And the source of this irrationality, in my view, stems form the banks. Keep the credit taps flowing, rationality returns. Keep the credit taps in an unpredictable state, rationality is held at bay. There are very few people that could afford any of GPTs assets without assistance form the banks, and those buyers-to-be would rightly be saying "if GPTs bankers dont help GPT, why would they help us?" ... and in the back of their minds, would know that the longer the bankers play with the credit taps, the cheaper everyone's assets are going to become.

Thats all excellent for buyers - and nightmarish for owners. WHy the rush to become an owner... that's what I think SGP/GIC are thinking..