Thoughts for Tuesday the 10th, page-125

As you know, Holla, Billy is out near the bottom, so probably not to be listened to.

I would make the point, though, that NOR appears to be burning cash at $30,000 per day. Young Saundo seems to think that there is a positive revenue stream, which is far from the truth.

The company needs cash, and the odds are still that they will have a placement or an issue. A placement is cleaner, but the beneficiaries will not necessarily be long term holders - if you were placed say 10 million shares at 4c ($400,000), wouldn't you be tempted to tip them out at 4.5c ? If it's a pro-rata issue, then those who are fully committed already will need to sell some of their holding in order to take up the issue. Either way, if I were still holding, I'd sell a few to raise some cash to buy back in.

Of course, if there's a major deal in the wings, the above may be irrelevant.