A few people were poo pooing me for my thoughts on grr a month...

A few people were poo pooing me for my thoughts on grr a month ago, thought I would repost them, been in this stock for over 5 years so know it intimately as it was my largest holding until recently. The 1/2c divvy is disappointing for the long term holders so I feel for you. But the points I made more go towards how I interpret the actions of the board more than the performance of the company.


1. I expect final divvy to be 1c as the company will hold back funds for Mill upgrade. Until that is resolved they wont go out of thier way to increase SP. They simply dont care about short term SP this company is run by the Chinese from top to bottom.

2. If they only declare a 1c divvy at 2c per year it has a great chance in my opinion of causing the SP to be pushed back towards 20c rather than upwards to 30c just weighing risk of downside vs upside.

3. By the time the Mill upgrade is complete I dont think I/O prices will still be high so there is a chance they will go conservative again on divvys and tighten the belts and conserve high cash balance.

4. With Chinese controlled board and management GRR will never have comparable EV to other Australian companies as the institutional investors dont trust them and tend to steer clear. Mom and Dad investors wont drive a SP so GRR is always under valued. Trick is to figure out when the peaks and troughs are because this SP fluctuates heavily and you can make more money trading the swings than you can waiting on Divvys. Thats a painful lesson I learned from Auto over the past few years.