Looking at the fundamentals NEN is a stock to hang on to but not the stock if you want to trade on a weekly basis, for the following reasons: 1. The Paloma drilling around PD -2, I expect to be at least two months away as to qanaties, defined reserves and production. Once NEN have done their analysis of the data it will then have to be certified by an independent specialist to confirm NEN's determinations 2. I would expect an update by NEN next week as they do not release on Fridays and at 1401 on a Thursday it is unlikely therre will be a release today 3. The farm in with ENI I think has largerly gone unnoticed by the market. In terms of size ENI is the same size as BHP however, they are specialists in gas and oil. For ENI to move into another counrty (Vietnam) their due dilligence and research into NEN's blocks would have been comprehensive. That is ENI risk reward ratio would be quite high on the reward. ENI would be very confident in making a return with the farm in with NEN. To do the farm in with NEN this would have to be signed off by the board, so it has gone to the absolute top levels of ENI and I am sure they are very confident. You don't get to be the size of ENI by punting. 4. The other farm in by ENI is good fro NEN as the rigs and equipment will be in the region not in the North sea or down the coast of Africa. 5. The management want NEN to see $3.45 as much as the share holders do and this is a good position for us as shareholder to be in having the management keen as well. The management have consistently delivered which gives confidence to the NEN 6. Paloma in its own right will be a game changer given the announcements to date and the expanse of the find. As i have mentioned it is about the quanaties not about the probability of oil. 7. Paris Valley as I understand it has heavey oil but substantial quanaties and NEN have not gone hard at this for the moment.
If you want to trade for a fwe thousand here and there I am sure there is better elsewhere. However if you want a stock that will changes your life I am of the view that NEN is shaping up as the stock that could deliver. As lovely as $1.09 looks I am looking furtherr to the $3.45. Good fortune to you all however you trade.
NEN Price at posting:
40.0¢ Sentiment: LT Buy Disclosure: Held
