How has this happened!?? No debt whilst making money and long term looking fairly solid. Tick. Seems like a solid investment.
But then.. SP down about 60% placing GXY with about 60% of MK in cold hard cash (including the imminent escrowed POSCO money). With no turn around in sight...
Yes, an extra $400 million AUD in bank might help, SDV deal may help, or whatever else may help. But in the last 6 months there has actually been plenty of really positive announcements that would normally get the SP rocketing and they have ALL 100% fallen on deaf ears. They have been announcements that are good for GXY but only for GXY, it's done zero to help the sentiment for the sector turn and that is what has killed us.
This scenario is surprising but not unfathomable with the general doom and gloom, bubble and bust of new disrupting emerging markets, Donald Trump, brexit, GFC2.0 eminent, China trade war, deep pocketed oil companies etc etc.
But my questions to the brain trust here on HC is how has all of this happened without: 1. Any take over attempts for any company in the sector? (even a failed takeover attempt would show true value imo) 2. Any share buy back talks for any company in the sector? (Again would somewhat show true value) 3. Any change in any substantial holdings for better or worse? 4. Any director increasing personal holdings? (Would show value).
It's almost as if the the sector is compliant with all of this. Sentiment is the big issue and the sector seems too terrified to do anything about it.
If GXY actually gave a sheet about it's investors, it's SP or even the sector it could put even just a slight 20m into a buyback tomorrow (and with the backup of a huge imminent cash injection that is coming weather the shorters like it or not) instantly would put up a big perverbial sign saying 'short at your own risk, we are too good to be number 1 shorted stock on ASX!' And if they want to stick around then we will very soon up that 20m to 50m and so on.
This simple and extremely doable gesture would change everything IMO and the directors not doing anything is crap. I'm not selling purely because I missed that boat a long time ago and now from here this trainwreck (albeit with the good fundamentals) just can't get much worse IMO.
The fact that a $3 takeover attempt would be both a huge (unrealistically high) offer and that I think it would (definitely) be accepted is disgraceful when even the shorts would admit that if someone bought us for that price and sold off GXY in pieces they would have an easy and tidy profit.
Everything rides on the SDV deal in let's be realistic and say March or April. AT will either be a hero or a villian... Right now it's looking the latter. What happens with a no deal? Go it alone? Yeah cool, doable and profitable in the LT. But I reckon that would mean a few more years of pain.
We are indeed the ones over a barrel in this negotiation and Anthony is gonna have to pull a rabbit out of somewhere if he and the rest of our heavy hitters continue to do sweet FA to show what we are worth.
The most shorted company has cash in the bank no debt and money coming in, we have the means to not be the number 1 shorted stock if they only cared. It shouldn't have ever gotten anywhere near this...... Perhaps it's just negligence? We are not prospecters anymore and we need to assert dominance and separate ourselves from the rest of the sector.
i don't know what he's going to do but from here in my arm chair with my uneducated opinion the gxy directors are drowning and even if this does turn around and goes to $20 heads deserve to roll for this failure.
GXY Price at posting:
$1.99 Sentiment: Buy Disclosure: Held
