GDN 0.00% 1.7¢ golden state resources limited

G'day all. many are wondering, why things are moving so slowly?...

  1. 254 Posts.
    G'day all. many are wondering, why things are moving so slowly? Surely it should'nt take that long! You could conclude from operations so far that either the directors are hedging or they are not competent to get results in a reasonable time. Further, you would be forgiven for thinking that if this is the best pace management can achieve, it would take 30 years to get the field developed even if they had the cash to drill a large number of wells.

    Why do some of us remain so positive or are we simply into ramping?

    The answer is in our belief that this mongrel market dog will be transformed into a much loved golden retriever BUT for this to be sustained, the directors need to time things rather carefully if the newly transformed market darling is to avoid a premature demise.

    To cut a long story short, the directors require a massive injection of funds to develop the project, where - either evaluation of the field is completed to allow farmin at a premium rate or hot spots can be efficiently targeted for production wells. Either way it is believed that ONLY the exercise of options and subsequent cash will be best suited to fill the funding requirement. Debt finance is too hard to get and far to risky to future financial stability and farmin requires better evaluation to attract an acceptable bid. Further, directors have demonstrated that they are determined to retain debt free status.

    In the previous ephisode of an oppy conversion event, the sp fell below strike price a short time before exercise date. One could say that the ammo had been used up as the enemy was climbing the perimeter fence - directors have learned their lesson. This time, considering we are on the verge of producing commercial gas, the only danger to miss the oppy cash once more, is if the show gets going too soon. There are a number of reasons to keep things steady in accordance with a strict timing schedule to ensure that the sp is well and truly above oppy strike rate AT end Nov and not too long before that, ensuring not too much time for the sp to go south again.

    You have to consider that any early move will expose GDN to some significant operational hiccup sooner or later. When that happens the short traders will have a fine time. With the stock comming off such a low sp base it will take time for jitters to disappear, meanwhile a large number of holders will have trailing stop losses in place, which can decimate the sp once again on short action triggered with any negative ann.

    The move, when it comes will need to be comprehensive to give the whole show a massive boost, followed up with well timed anns to keep short traders on their toes and keep them too fearful to engage because of potential sp runs on consecutive anns.

    I am very convinced this is more about the jockey than the horse. It appears to me that commercial gas will be achieved from #pb3 based on indication thus far. That being the case, the horse is clearly able to get to the finish line, but the jockey will need to time the run.

    The point is, it is considered that time delays are more a recognition by directors that they need to time the run to Nov than any thing to do with incompetence. IF you do your homework by researching various options for funding and ask questions about directors' motivations perhaps you will draw the same conclusion I have.

    Can't be 100% sure, but certainly looks that way! I reckon the run is about to start. Should be a fun ride!!!
 
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