watso recommences coverage of gda

Not many analysts cover gda these days, but following the inclusion of gda, in the ASX 200 "biggest dog stocks" (penny featherweight class), the team at watso corporate, have resumed coverage.

Recommendation BUY at 0.9c ..

Target price 0.5c.

Clients, with a risk averse approach to investing, and who are looking for a certain tax deduction, for june 30 next year, are urged to buy the stock.

An analysis of the half yearly report, indicates, that , despite recently raising $1m , the company is , once again out of funds, and is possibly being kept afloat by short term loans..

At june 30, there was a negative working capital position of approx $150,000. This was after funds of $578,000 was received from the issue of 76,133,333 shares. Subsequent to balance date a further $429,000 was received. The net effect is that the company had a positive working capital position of about $280,000 (as compared to the june 30 figures). given the passage of time, then it is most likely that the company has almost zero working capital.

To raise funds, an issue at .5c, is possible.

disclaimer

The above should not be construed as being financial advice. clients should take into consideration their own financial circumstances