I don't like it because GJT were completely done over by the refinancing agreement. They had good potential with high dividend return but that has been taken by the refinancer and the refinancing comes at a huge interest rate. The global economy is still unstable too so there is no guarantee that things won't go backwards again, so for me it's too early to re-invest in GJT. With such a high debt ratio things could turn bad quickly for them. In addition to that, they are supposed to sell all assets over the coming years, so what will they do after that, simply wind-down?
I'm not writing them off, I agree that the potential is there for this to be a multi-bagger and perhaps they can even get better financing to buy them out of the current arrangement, which would bring GJT back. I think it's too risky at present though. I don't mind risk but I have limits, and think better risk is to go for a couple of junior oilers/miners.
If your time frame is as you stated then that's OK, but it seems that you are trying hard to sell this to others and it makes me suspicious as to why you would do that. I've seen it before from others trying to profit from others. With your time frame, it matters not what others do now, so why bother?
The report will be interesting, I don't see it moving the share price much though.
GJT Price at posting:
$2.00 Sentiment: None Disclosure: Not Held
