If this is undersubscribed, it will not surprise me to see shareholders be able to contact the company and pick some up.
Usually, if a SPP/CR - whatever name you give it - is undersubscribed, a company may contact certain SHers - if they meet the minimum shareholder requirement - and advise them that they are entitled to X amount of shares. It can be up to two months AFTER the closing of application. In our case, October 26, so nearabouts.
It's called a shortfall application.
However, NWE has previously sold them to Hartley's. Peter and Co. have tried to look after a SHer in this case. Now, it will be up to us to fulfill it if interested.
Also, look for the pump between today and Monday afternoon. This is to make the 3c look tempting to those who have not gotten involved. If you can time it right, you may make an extra 10-50%, depending if you qualify and what the SP is at EOD Monday.
How many times have we heard 3-4 months? Not to sound cynical, but I have become it in my mid-to-late 20s.
IMO, this will be used by a lot of investors as a way to average down, especially those that bought during June-November 2012. Also, keep in mind that the shale sector is being watched very closely politically in WA and in NSW. CSG is on the nose in NSW, whilst fracking is liked by the Liberals and Colin Barnett. And especially with the Browse Basin encountering problems, I'll lead you to make you own conclusions.
Market-wise, Shale gas is going through some sort of re-rate - as we saw a month ago before the SPP - so this could take off should investors not dump upon being allocated their portion of shares. And, it also happened the last time, when the SPP was at 5c.
We all understand the FA around the company. HCSS result/s will help to pump this up. 9.7 by December would be nice, but I would like it to be 19.7, as the company wants to get something being produced by June 2014. And this is the quickest way.
They are my tips and thoughts. Henceforth, enjoy.
DYOR. GLTA. Disclosure: I hold a seven-figure sum of shares, and am shy of the top 20. If I buy in this SPP, I will most likely join it, depending on others.
NWE Price at posting:
3.1¢ Sentiment: Hold Disclosure: Held
