Price is falling due to the short term thinking of goodman himself.
The market has been happy to buy into rights issues which is what everyone thought was gpoing to happen. This would have strengthened the balance sheet with no long term questions needing to be answered.
All these little deals have diluted our position giving stock away for free. The banks would have done similar deals. PNA for instance has done this. The short term thinking is that it all turns around within 2 years and better financing will be available. So we all tread water for another year or so. We could have been covered by a rights issue and motoring ahead, and when it turns around simply have a share buy back or consolidation. Least we would be at 60+c not heading back to low 30c.
We will miss the boat because by the time he gets it, the market will be exhausted with rights issues.
I think the reason why GMG did not go this way is that Goodman himself cannot afford a rights issue and does not want to really dilute his position. Remember some time back it was reported h was trying to sell his boat.
GMG Price at posting:
34.5¢ Sentiment: Hold Disclosure: Held
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