GCN 0.00% 0.7¢ goconnect limited

As somebody else mentioned, from a technical perspective GCN...

  1. 1,957 Posts.
    As somebody else mentioned, from a technical perspective GCN could easily find support at this level of .024 cents based on the lows on 22.08.11 and 24.10.11 that formed this support line. If so, it could trade up to .034 to .043 based on the way I see at the chart at the moment, without anything outrageous happening on the news front. Whether any of these figures represent value depends on GCN's ability to make money. The direction SP takes will be governed by markets perception and sentiment. I'm not aware of any significant tangiable assets that GCN have to justify it's market cap so on that basis the market must be placing GCN's value on its ideas. Thats fine as long as the ideas come to fruition and generate profit to maintain and grow it's market cap . If not, there is little else to prop the SP from I can see at the moment. I understand the comparison you are trying to make to SFR with regard to both companies historical negligable cashflow. Obviously, the difference is that SFR have a tangiable asset in its proven reserves and infrastructure and earnings capacity to justify it's SP. If SFR were never to commission the mine there would be a swag of major mining companies that would pay up bigtime for the world class asset because its fundamentals are true and correct. Investors know this which is why SP can be maintained at elevated levels during mine construction without cashflow. SFR's core value with relative metal prices justify it. If GCN can turn there ideas into huge cashflow and profit, SP will follow. In the absence of other assets to justify SP, it is critical that they achieve this. My non expert opinions only. DYOR and GLTA.
 
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