gmg - a shorter's picnic, page-14

The window for capital raising is nowhere near closed. You think GMG couldn't do an underwritten 2 for 1 SPP at 20 cents per unit next week and raise . . . ~$1.3 bill? 2 for 1 at that price would be severely dilutive - but they could easily do it - I sincerely hope there are no SPPs at all - but am holding ready cash just in case.

What if the SP falls back to 20 cents? They can do a 2 for 1 at 10c - $640m cash raised (even better at 16 cents).

Lets not panic - the SP has done well over the last few weeks, and provided lots of opportunities through its volatility.

You might complain if you bought over 40 cents, but after it has doubled in value in three weeks or so, that would have been a big decision - somewhat following momentum, and those without a stop loss who follow the market should reconsider how they trade, if they are not happy to hold.

Keep some cash just in case, and use lows to build whatever position you are comfortable with, if any.

I see no danger of GMG going down the gurgler, as they are able to easily service their borrowings, and raise capital. I'm hopeing they don't need to do any more of either with any dilution, and there is a fair chance they can get away with it now.

Good luck to those who shorted and made some money.

The whole stockmarket is on sale. It currently one of the safest times in history to invest, if you do some homework.

. . . what else is a bargain today . . . I hope the market tanks another 10%.

DYOR