We will see what their family and friends think as time progresses.
The stock ain't going to 40c on the back of a capital raising (heavily oversubscribed) in the space of a week. With a key announcement around the corner it's even more unlikely.
I highly doubt any broker would of made such a claim.
Could it go to $1 in a year, maybe. Over 100% gain ? Could it go to 25 cents on weak news flow in the short term perhaps. So a 5 cent downside ?
Worst case scenario I see is selling into Vietnam - which I'm sure will attract a buying frenzy.
There also seems to be no risk with cash flow as NEN raised the extra cash for added flexibility and security. Current producing assets should benefit from oil prices also recovering.
So the opportunity cost is waiting 6-8 months with a selling point anywhere between 0.4 - 1. Chances are it will be a good premium to .30 and the family and friends will be shouting drinks for a while.
NEN Price at posting:
30.0¢ Sentiment: LT Buy Disclosure: Held
