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EM1 1.3¢

puzzled!

  1. JBALLS

    100 Posts.

    Last Thursday my broker rang to suggest buying GIP in large quantities. He hinted that the company was about to make a series of encouraging announcements.
    Sure enough, that evening a trading halt was called and the announcement made on Monday of this week was extremely bullish.The shares run from 6 cents to 11 cents but now they have drifted back to 7.5 cents.
    The broker claims he has huge buying orders, yet the turnover today was pretty small. Perhaps there is underlying support which brokers hide from us plebs.Or have I been conned by a broker trying to increase his performance bonus?
    How can a company - seemingly with remarkable prospects such as GIP's - continue to have a market cap. of just 7 or 8 million dollars?
    Can't be their resources,since tantalum and feldspar are both supposed to be in big demand. Assume therefore that it is
    1. an aversion to doing business in Egypt;
    2. a fear that the company lacks the knowhow to get satisfactory financial backing;
    3. something from GIP's chequred past which alarms investors.
    However, I've taken the plunge and bought up big,as recommended by the broker. Have to hope that some company or bank will help GIP with funding.If (when) this happens, a market cap. of $8 million will be shown to be quite farcical.

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