could you please give us the details, briefly, of the last capital raise? if you havent noticed, the earnings are now going up very nicely.
excellent summary. u r totally right when u say patience is in order--that eliminates the great majority of investors/speculators, and thats why we r getting the selloff right after the CC.
yes, it is possible but it certainly would be a 180 degree turn from the current language of the chairman, who consistently talks of growing and transforming the co. i see him as a straight shooter, but, of course, one can never underestimate the greed motive.
if a low-ball buyout were in the cards, the chairman would not have said several times that the stock is grossly undervalued and citing the much higher book value. he would be opening himself up to a slurry of lawsuits. why should they be paying a dividend or doing a buyback when they need a considerable amount of money to deveop the NG assets and possibly make another acquisition to positively transform the co?. todays action is simply the impatience of those who were hoping for a div. or buyback announcement. i prefer that the weak hands be flushed out, and that more long term investors own the stock.
i think quite often all these IR firms do is send out an endless stream of babble; every post that gets pounded into the ground they send out as another milestone. i think people get tired of all the trite press releases. the chairman may look at it as an unnecessary expense, and i would agree with him. if he wants to run a tight ship, im all in favor of it. as earnings and BV increase, so will the stock price.
since i assume u r short the stock, i suggest u run down to the drug store for more Prozac. just because a few NFL players beat their wives, u probably assume all NFL beat their wives. flawless logic!
more conviction will come with more information. right now there are a lot of people simply renting the stock for a few hours or a few days. the vital piece of information is that the gas is commercially viable. the co. wouldnt have spent nearly 10mm if they didnt think they had struck a sizable reservoir. i suspect we will see a very positive news flow as the story unfolds.
gocolts, how do u arrive at the 150mm number? wouldnt u have to know the lifting costs first and do a present value analysis? thanks
sadly, a microcap Chinese raw materials co. gets the lowest possible multiple, esp. when the raw material, bromine, has been going down for a long time, tho now it seems to have reversed. thats why diversification into a value-added manufacturer or producer is so important. the CEO understands this and is following the right course.
this was an 11 dollar stock a few years ago just on the the strength of bromine. i know u r looking for a buyout, but i will settle for 15% EPS growth year after year, with further diversification and thus a much higher multiple. the NG will be dessert, and i dont want to pin too many hopes on it.
my view on GURE is very favorable. lets not forget it has gone from 1 to 2.55 in 4 months, and i believe is just beginning its march upward. it is cash rich and asset rich--soon we will know the extent of the richness. the key here is let ur profits run and not sell too soon.