news due soon, page-115

thanks to wisdom123 from top stocks:

"The sp has been very sick since the initial slide from about 8c when #PB3 got going - WHY???

Some say that the sp will be lucky to get back to 8c even if we get 6mmcfd from #pb3 and in one way they are perfectly correct in their analysis. The sp will never get going with the current breed of holders such as the loyal micro shareholders we represent here and at HC. Good anns containing promises from management as to the gas prospects will come and go - the sp will rise half a cent or so and then slide back to lower than where it started. Very frustrating and for many also an anxious time, will this ever happen and if so, when?

THE SOLUTION is a different breed of shareholder, one who is in the market by necessity and when requirements have been met, will create demand for many millions of shares. Of course I speak of institutional holders and brokers' wealthy clients.

Next question is - what will get these guys going? - The million dollar question!!!

We are all aware that GDN is on the nose right now because of past let downs, in particular to these two groups. Its one thing for you and I to get burned by unfulfilled promises, its quite another for them when the pain is magnified because it happened to their clients - hardly a thing they forget in a short time. They are not coming back on promises this time! It will need to be based on fact - independently confirmed production flow rates!

BUT how much is enough? 2mmcfd or perhaps 5mmcfd? It does not matter, so long as it is commercial and it is going to get into a pipeline to earn a defined level of CASH.

Institutional investors and brokers get involved in the risky small end of the market because they have to, they are committed to find limited risk high potential small cap species for a % of their managed and client portfolios - you have probably seen that option offered to you in your superfund setup. Stocks which are underpinned by earnings and display very solid prospects are hard to find.

GDN, when it has established earnings, it will fit into this bracket and will certainly be on the radar scope of these two groups. once commercial - 2mmcfd or more, fundamentals will be enough to meet requirements - i.e. low debt, low risk, high prospects with defined earnings. YES from market dog to market darling! If you cannot grasp this concept, you should not be in this stock.

It is becoming increasingly clear that #pb3 will meet the mark in terms of production, when it does the brokers and instows will move in as sure as day follows night.

AND THE SP??? When instows and brokers clients demand 100s of million shares between them and there is only 15m available to 20c - supply and demand factors will drive the sp up beyond your wildest dreams, or at least a good margin above oppy strike rate.

SO for those inward looking loyal micro shareholders - keep your eye on the sick sp and foster the crook guts it gives you. For the rest of us, enjoy the fact that the risk is past and hang on to your hats - its going to be a fun ride!!!