buying opportunity, page-6

As i have posted on another stock - no stock is immune to the sell off in the market at present. Those who have been around this stock for over two years know how volitile it can get with the buyers drying up very quickly and desperate sellers coming out.

The chart looked very sick from $1.80 and I had been selling since then. Bought a couple back at $1.35 and have orders around the $1.05 to buy more. My view is the market is heading back to 4,150 on the XJO and if that is the case, NWH is headed back to $0.95 with a bullet. IMO i don't believe we will see this stock back at it's '07 lows of $0.20 as the company has reduced debt significantly and almost tripled the size of their order book. They are in a much better position compared to '07. To the management's credit they have not needed to raise $0.01 in new capital and i do not believe will be in need to unless they win a company changing contract and require additional capex to get the project off the ground.

At $0.95 I will be (and a few friends) loading up to the gills on NWH. It has spent a lot of time here consolidating prior to moving through the $1.00 mark last time. I believe this is a very significant level of support price for the company. The only unkowns on a fundamental level for the company is that of the Resource Rent Tax and the liekly hood of major contractors (FMG) shelving projects. This in my view will hang over the stock until the Government changes the current form or scraps the tax.

I believe the MD resigning is a positive for the stock as he has signalled that he has no intention to sell stock on market for the forseable future. This to me has signalled that his stake is up for sale at a decent price. DOW - Downer have just won a rather large contract on the FMG - Xmas Creek project, iam not quite sure of the implactions this will have on NWH's work they are currently doing there as I thought NWH was the preferred contractor, however DOW are now spruiking this. DOW an eastern coast company has signalled to the market that they are looking to agressively expand in the western market and as we know NWH has a decent foothold on this. Now call me crazy but DOW with a market cap of ~$2.2bil could quite easily consume NWH at ~$300mil (well not after today) now the company has had a change in management and a key stake holder open to offers...........

Good louckto those stepping in the market and tryig to catch this falling knife. We all know the quality of company NWH and their management team is. So play it safe and buy at key support levels.

Cheers
M