Re Your analysisWolf, I get it that you have a favorites list and if some of those picks aren’t performing to your expectations, you will shift money from the laggards to the better performers. It’s sort of a tough love. No doubt the template you use for your analysis covers a range of positives and negatives to watch for. You’ve deemed it prudent to shift money away from GSI as you demote it on your favorites list.
I don’t think there is a rush to judgement as you have 4 touchpoints to refer to rather than a single plot.You mention the Board member with an outstanding loan and that he is riding on the coattails of an abused privilege; however I agree with you that it’s not a material factor affecting the company’s health.
Also, the wild swings in their working capital that raise flags, but you note that GSI has a healthy balance sheet, money in the back and no debt to speak of as an offset to these wild swings. So management seems to have a vigorous fiscal response for the growing pains of a small-cap as well as trying to mitigate the issue with the expansion of the MDC’s.
I will add to this post tomorrow .