Looking Back

This week last year Gage Roads finalized the financial restructuring of the company through a rights issue and a placement of shares for $0.025. it was apparent from the low take up of entitlements (36%) that the majority of small holders did not participate and holder confidence was at an all time low. The share price reflected this as shown on the 10/10/16 with a low of $0.028. The underwriters were left with a huge bag costing them $5.5mil,
The buyback of Woolies shares was seen to some as a loss of outlets for product but we then noticed Gage started to ramp up the sales team and marketed more aggressively, appointing a couple of national distributors to push our product.

There was a few investment companies picking up some good holdings and the shares started to claw back the losses before Gage announced that they had made a 'profit" for a quarter, another jump in price.
And then we come to the "Eureka" moment, the winning of a 5 year contract to supply the Perth Stadium and another small jump.
My rough estimate is that for all the rights issued there has been a profit of around $15.3 mil booked by those who accepted the offer or traded through this time, there would have been substantial profit taking and the underwriters keen to unload surplus shares, this would have seen the sell side flooded but i believe this will correct and buyers will start to pay extra to come on board.

Right now I am holding tight and awaiting the next couple of quarterly reports because it has been an exciting year and returning to craft is working.