I'm coming into GBG green as a leaf and I'm sure people are going to rip me apart for what I say here, but 10 beers will do that to you. My mate who works for Karrara got my attention to the stock; he's getting a bit worried about loosing his job so I thought maybe I'd look in to see how bad things are.
I've only just started combing through the annual report and begun basic forensics but on the face of it, all GBG needs to do to stay a viable investment is: 1. Fight off Ansteel to remain independent, 2. Increase productivity all round (what kind of spending is that for admin.!) 3. Hope like hell the iron ore price goes up, 4. Hope like hell the Aussie dollar comes down.
It's one hell of a fight but on the face of it, only having looked into the stock today these are the only problems from GBG. Flippin' big problems but still the only main problems. I'm not overall bullish on the australian economy so I can wait for a lower dollar, but then again, I'm not really bullish on a world/Chinese economy expansion either. My sympathies to anyone who invested at the high but for the rest of us looking for a recovery play what chance does anyone think there is? Aside from "Absolutely f... all Strop you silly c...!".
GBG Price at posting:
2.2¢ Sentiment: None Disclosure: Not Held
