some comments to the ndo buyers

After reading numerous comments by people who are accumulating at the current prices I would like to provide a number of comments, the majority of them are very trivial, but maybe it is worth while to pay attention to them:

1. POO is in a strong down trend started from the beginning of July. Initially I was thinking that it should find support in the US$80-US$90 area, but as you know with Dow Jones moving sharply down this night POO has crossed $US70. I am still expecting that it may consolidate at this level, breaking this level means that the next target will be US$50 and at this stage it is not clear what will be a consolidation stage for POO.

2. As a result of 1 the Energy sector in a strong downtrend, unless there is consolidation in the sector, I think there is no point to try to buy thinking it is cheap. My simple philosophy in this case is “Today it is cheap, tomorrow it can be cheaper”.

3. There are a number of very good oil companies on the market producing consistently cash, debt free and having a very low P/E ratio. And all these stocks are moving down. So NDO can not be an exception.

4. NDO cash position is not very rosy. After reading one of the articles pointed out by Sandybeachs a week ago I found that total expenses caused by the delay in starting production were ~$120mln, with an NDO share is probably of ~22%.

5. You may say that with the current market capitalisation of NDO of ~$150mln it looks very cheap taking in an account the oil resources held by the company, but it seems with the current market conditions nobody from big companies is interested to buy small juniors, they are waiting probably for a cheaper stock price levels.

6. I am still interested to be an NDO shareholder, but with the above mentioned comments I am waiting for a consolidation stage, similar in flavour to the one when the stock consolidated at ~30c in August.

Good luck to all NDO sharehlders.