You are right - a dilution is the main risk in the short term to the stock price. We will see whether Iggy's comment that capital will only be raised at a premium applies. Additional Funding has to be secured - they have already flagged a $30m convertible to a strategic Chinese investor.
The move down today was well within the bounds of a strong uptrend and dwarfed by recent appreciation at strong volumes. It has been a good stock to trade. Obviously further falls could change this situation.
With funding secured (the quarterly will confirm), long term the company is in a good position. Potentially very attractive to Chinese interests.
GXY Price at posting:
50.5¢ Sentiment: LT Buy Disclosure: Held
