>Ed, at what price would you consider the stock price to have collapsed? U. B. Green<
I am not a technician. Two+ years ago the shares touched a low of around 35 cents with much trading around 40-50 cents before the price took off. The company was nowhere near where it is today. If the share price dropped to that level or even to 50-60 cents it would mean there was panic dumping and I think this could only happen on very bad news (like an earthquake messed up the properties). Remember the Oro Grande alone is really worth a multiple of the present capitalization.
But anything is possible when uninformed shareholders panic. At 60-70 cents a share I would begin buying on a log scale down. But I seriously doubt if I will get that opportunity. Or at best acquire only an insignificant number of shares.
We all agree that the depressed price is due to the lack of news. But in addition it is due, IMO, to the questionable assessment the market has about the quality of management. In my opinion Jensen, despite his honesty, persistence and money raising ability is not viewed as an experienced and effective manager. What carries the day, however, and will prove out, is the extraordinary quality of the ore and the ability to extract. No desert dirt other than GPGI has accomplished extraction. So on balance I see the virtues of GPGI basics counterbalancing the limitations of management.
But it is the weakness of GPGI which the market (namely less than well-informed players) perceives in bold relief. And again, as I indicated in my previous post, the sophisticated players are taking advantage of this weakness by holding back on their buying. So when Zeev talks about technicals vs fundamentals and suggests following the technicals what he is referring to, whether or not he knows it, is managerial deficiency and nothing else.
Actually, Jensen has been making moves to improve management with the hiring of DeNoble, establishing a professional office, and employing specialized personnel to help with such matters as auditing and preparing the filing for the SEC.. But as usual there is always a lag between what the public perceives and what is happening for the nonce. Jensen needs to overcome the image he has and this can only happen in time. |
