Ok i dont meant to prick anyone's bubble here - but that correlation is meaningless.
Ther relationship to the other stocks and the fact NKP was $1 in 2003 with a market cap of $691m is totally irrelevant to today.
If you are going to compare to PDN and the other from a crytal ball - then i would pick PDN not NKP. No brainer.
As for the great cash operating costs- yes i agree great - but that's only for NKP, not Xtrata which has an Investing component to their costs to cover. Let alone a rate of return for their risk.
This is not a dump on NKP - i hold and big time - just want to make sure that people are using valid data to make decisions. If you want to do a comparison, then undertake a peer analysis basde on resource and geographical proximity. Alternatively, you will need to undertake a DCF of the project to determine its economics - from the correct viewpoint too.
Anyway.......Accaeric i think a rethink of your investment philosophy is required........you've come to the right answer, but for the wrong reasons
NKP Price at posting:
50.0¢ Sentiment: Buy Disclosure: Held
