management straight-up talk, page-11

Hi Stagman,

I called on his Peter Landau on his mobile number. I called the Perth office twice last week only to get a "can I take down your name and will get Mr Landau to call you back only to get nothing". The number was given to me by a mate who holds a very large position in RRS and CCC. Funny enough this mate wanted to sell CCC and RRS but to get NKP but has not done so since he is sitting on a sizable loss for RRS and especially CCC. I made the call a couple of hours before I wrote the post on HC.

I find asking the hard questions reveals more insight into the situation. Asking the same question from different angles also helps to reveal if the person is talking BS as well. My parents who have now both passed have said "son if you are telling the truth no matter from how many angles people ask or ho much they audit the answer shall be the same" so when there are inconsistent answers then I get suspicious.

I believe Rod178 at one time stated that he likes to study about psychology, which is why he states the comments that he does, well if you are reading this Rod178 maybe its better that you call management and conduct your research there. Its more fun and insightful.

Hi Rogorogers,

I was trying to get as much information as I can however I wanted to audit and cross reference a few things by "throwing" in the spanner to the works. I think the Democrats used to have a saying "keep the bastard honest". People may think that I may have wanted to get a few things off my chest by what I wrote but my main concern is always the future rather than lamenting the past. The stock market is about making money to me. Research is necessary but management is also just as important.

I take another stock called Bandanna Energy (BND) as an example. There were many announcements that "we have many potential suitors" and "talks are well advanced and a conclusion is expected soon" over the past 6 months, and these guys even appointed UBS Warburg to handle the deal. I traded these guys many times since January 2011. Timelines came and went very much like NKP. I shorted the hell out of this stock on late July because management kept on saying "oh its going well, we have been doing presentations to the various parties and they are expressing interest" but their tone sounded very tired as if nothing is happening. These guys never told the market that some suitors have pulled out but the newspaper Indian Economic Times and Reuters started to gossip that multiple potential Indian companies have already pulled out. I shorted these guys at $2.23 and have still held the position, although I do intend to close it soon. BND has fallen nearly 50%, I admit that the market situation has helped me however even if the market was in the green I believe the loss would still be in the 30% area.

Another stock that I have shorted hard since mid-May 2011 is Galaxy Resources. This is different since the company projections were well off the selling price that they eventually got. There was also rumour that their mine extraction rate is well below the market anticipation. Once again when I speak to management there was a "salesman" tone however as I audit their answer from multiple angles the tone became defensive and avoided answering the question. My short position is still open here.

I find that talking to management for a while and following the stock history you can tell when they are telling fibs.

I have not shorted NKP to date but only traded it. I do feel that NKP is not hiding something hideous however there are things that NKP management can be more upfront about. There are some positive signs but the track record of delivery is appaling. This is the reason why I believe that something will be done but people should start to relax on timing expectation. I am glad to be wrong. I have been wrong before and will be wrong in the future again.

Whatever strategy works for you ... stick to it.

Good Luck to all.