13 January 2015
By Maynard Paton
Time now to face up to one of my investment disasters of 2014 — and one that could very well extend deep into 2015 :-(
Getech (GTC) supplies geophysical reports and data to oil and gas explorers — and I believe the recent oil-price slump is likely to have a significant impact on this small-cap’s near-term progress.
Indeed, even before the oil price started to plunge in the Autumn, GTC had already issued two profit warnings — so the immediate omens here are not great. But for better or worse, I am sticking with the share.
In my view, GTC is a fundamentally attractive business that should have the wherewithal to survive the oil downturn. Plus, this holding could in time become a very lucrative recovery story — assuming profits can one day return to levels witnessed during recent years.