Lot of talk about projects but nothing confirmed to happen for a while yet. NWE need some share prices triggers NOW
FUNDING is still the biggest issue as far as the market is concerned. A billion share company with a languishing share price won't be a favourite with many. I really do wonder if the NWE team realise this, and if they do weather they care?
A company that ends up in this sort of situations is at the mercy of the market. If they have to go cap in hand to the market with a low SP and find it well under-subscribed (which would be the likeliest scenario imo. The lower the SP the more shares get issued) They will then have to use someone like Patto's to underwrite it. Pattersons will then sell their discounted stock until it is all gone suppressing the SP for longer.
If things get really dire with amount of shares on issure, NWE may do a consolidation of 10:1. So if you have a 100,000 shares at 2c you will now have 10,000 at 20c. This now exposes the stock to be sold from 20c back down to single digits.
I am not saying its going to happen, but i have seen it happen and no one thinks it does until it does. NWE need to get active faster and get something to trigger an increase in SP or they could find themselves in a spiral worse than they are presently in.
NWE Price at posting:
1.2¢ Sentiment: None Disclosure: Held
