What's Going On At Gage Roads

[floppinab]

Question for Westaustralians.

I'm not a big follower of the Stock Market but my brother is and he just forwarded this to me.

Gage Roads has tripled it's price in the last 3 weeks.

http://investing.businessweek.com/research....asp?ric=GRB.AX

They issued a pretty positive but not outrageously so, earnings advice prior to their run and apart from a Woolies taking a 25% stake earlier on in the year there hasn't been anything else to drive this, or has there. They've had to respond to a query from the ASX about it as well.

Maybe there is money to be made from this caper, or is there some inside info!!!!!

 

[jonocarroll]

Just having a look at the longer timescale, I would say the better question would be "what has been going on in the last few years?" - only now are they approaching their pre-2007 prices. Short-scale fluctuations can be due to a lot of factors.

 

[apd]

Having just tried their 'Wahoo' and IPA which were sufficiently bland for mass market appeal, I'd suggest they are well on their way to making it big in that market.

Andrew

 

[osanai]

Woolworths are using them for all their private label beers on the west coast, SA/NT and some of the eastern states. It's a significant increase in production

 

[Asher]

I think GR are making a "TED style" swill for the mass market as part of the Woolies deal.
On the back of this GR are looking to break even for the first time this FY.
I guess that's positive for the shareholders

 

[osanai]

Yeah Dry Dock Lager, in a blind taste test you would be hard pressed to tell the difference between the two.

 

[beers]

On the back of this GR are looking to break even for the first time this FY.
I guess that's positive for the shareholders

Yeah, I hoping they make it back up to the 18c that I bought them for sometime back <_<

 

[glennheinzel]

If the ASX has issued a "please explain", then I'm thinking that there isn't any publicly available news to support the price increase.

FYI - The share price increase followed a fairly bullish announcement on the 30th of October (about strong demand, bringing forward expansion plans etc). I doubt that there was enough bullish sentitment in this announcement to justify the increase (currently about 100% since two weeks ago).

If there isn't any substantiated rumours, perhaps its a momentum thing. Ie, People/automated programes detect share price increasing so thy get on board too. Increased demand leads to increased prices.

 

[sinkas]

ID say its that time fo the yeasr that the ceo need a reason to substantiate his ridiculous pay , and a bonus