:., page-15

~45% of NDO are held by institutions. They all have rules that dictate a lightening or complete selloff of shares with a decrease in shareprice. I reckon that we may be seeing a bit of that.

Institutions may also be required to sell to make up for losses in other parts of their business. Merrill Lynch, America's second largetst bank and holder of convertable notes representing 141 million shares had a US$ 20 billion writedown last week. Another substantial shareholder, JP Morgon, took a US$ 2 billion writedown. They may be forced to liquidate some shares, however good, to cover their losses.

That said only a small number of shares changed hands these last few days to drive the share price (1.9% of total shares outstanding)down to 22.5 and for every seller there was a buyer. More shares for the patient and those that can afford to hang on which based on the numbers represents 98.2% of us.

On the technical side it looks as if the Galoc completion program is going ahead and that we're 6 weeks or so from seeing real production followed a few days later by first oil sales. On a P/E (<3) basis Nido is extreamly undervalued. You have to think that something has give on the upside soon.

Regards to all,

OPT