Stevie
When NWE started releasing figures from different zones, in particular HCSS, there wasn't much talk about this being a pilot well or 'sounding' well for an A3. It was all talk about pipelines on our door and a customer waiting to buy all this gas. Whilst it started out that way, it soon became apparent that we were on the verge on a commercial well. It wasn't until the flow rates had dropped so much that the test well was all the go again.
Luckily I didn't participate in the recent CR. For those that did, I'd be fairly peeved if I was you. Sure NWE need to raise $$$, but there seem to be a lack of transparency around the well around that time for people to make an informed decision weather to participate or not. To me, this was proven by the fact it was so under-subscribed. Now you have sophs with shares still i'd imagine that are well underwater and will sell this down on any sort of blip up.
NWE are a spec stock. Its a risk, sure. Management of all stocks obviously need management skills on a number of levels but managers of spec stocks HAVE to be able to manage time or there are going to be issues imo. Companies that have an income have more time. Companies that don't are at the mercy of time. So NWE put out their way forward plans yesterday. What did the market say about that? There's no confidence. WHY?
Sure, NWE may recover some and get this project going, but the market is saying -
How are you going to fund this? You have minimal cash for an extremely expensive procedure of which you own 27%. You're either going to have to farm out some or raise $$$ with a low SP creating more dilution that if we were sitting higher. You are about to go on leave. Look at how long its taken you to get this far, how on earth are you going to see this to then end without massive dilution? Your forward expenses are off the richter for the next quarter. Why? Sentiment is low towards NWE. Why?
rant over.
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