re: we recovery quicker than you think
In the short term, I disagree that they will go over 30c Mick as they state they believe ENG will only get 4000 new clients per month in 06/07 and are targeting 100,000 plus by June 2007. If we assume they have 40,000 now and add 48,000 odd for 06/07 - that is 88,000 already.
If they state they are even at 40,000 well then there is hope but they need growth perhaps outside of Australia - I believe this to be their vision. 50,000,000 shares is a lot of dilution. IMO, speculation may jump when they announce their growth strategy and financials but the sophisticated few, who will be issued large amount of shares at discounted prices, will become overnight profiteers as was their behaviour last time shortly after the 14c placement.
It has set back ENG two - three months regarding share appreciation IMO if the laws of any market are applied, although, I cannot imagine the placement to be below 20c. Given the current cirumstances, I believe the SP of 23/34/25 to be about right.
I hope I am wrong for holders.
ENG Price at posting:
0.0¢ Sentiment: Hold Disclosure: Not Held
