GBZ 0.00% 0.9¢ gbm resources limited

large iocg potential - mc???

  1. 3,206 Posts.
    lightbulb Created with Sketch. 95
    the more i think about it, the more questions i have about the options being handed out at just 20c.

    for a company to come out with an ann promising a large IOCG potential for Milo and still be stuck at a sub 20Mill MC is a case of the market not seeing the potential yet. there are a few other companies which have had interesting but still preliminary drill results - and they have an MC multiple times that of GBZ.

    allow me to indulge my theory:

    due to the limited number of shares available for trading - this isnt a stock that can maintain its upward momentum based on traders... if it has to jump, it will do it on the next ann and in double quick time with traders scrambling. but for now, the paltry day trading and HC interest in this stock could well be due to the fact that exiting this stock at a profit (say vs AVB)is very hard due to the buy/sell depth.

    for many stocks, its not just the story but also the liquidity that helps the MC to catch up with potential..and maybe a dilution is necessary to help the MC along - (although the SP wont have a proportionate rise due to the dilution, but will go up nevertheless)

    will Greenday bring in the right kind of new investors and also help convince investors of Milo's potential and aid in SP appreciation? if they have an exit strategy and arent in it really for the long term then a 20c exercise price would mean a future dump at a higher price.. and maybe they are convinced that the sp is going way higher? why would they be interested in options when a 10% fee or higher would be better cashflow wise and surely GBZ could pay the fees right now as i dont see them needing 4Mill plus right away... they could well be like the other small caps and go for continuous cap raises until we shareholders are sick of the infinite dilution..

    considering how hard it is to dump GBZ shares, i dont see Greenday dumping them even after this dilution at a profit unless the sp goes way over 20c and there is sufficient market depth... or they transfer shares to an investor for a price which again bodes well for GBZ...

    gee, i am going mad waiting for news.. i hope the above made sense..lol.

 
watchlist Created with Sketch. Add GBZ (ASX) to my watchlist
(20min delay)
Last
0.9¢
Change
0.000(0.00%)
Mkt cap ! $10.41M
Open High Low Value Volume
0.9¢ 0.9¢ 0.9¢ $12.32K 1.369M

Buyers (Bids)

No. Vol. Price($)
9 2332020 0.8¢
 

Sellers (Offers)

Price($) Vol. No.
0.9¢ 176333 2
View Market Depth
Last trade - 11.28am 29/07/2024 (20 minute delay) ?
GBZ (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.