95% of my portfolio is in NSE atm. I have only allocated 20% of my portfolio to REY. My NSE holding has always been min. about70% of my portfolio at all times.
You asked; "why you think the sp will not go down further".
I said all these things before here but I will say briefly again. I always say here that the first and most important thing for me in a stock market company is its management. I have a great confidence to Sam Willis's management capabilities. I hope I will be able to continue to keep this confidence for the long run. (As I disclosed before, I have never met him in my life other than talking on the phone and emails). We are all human, we make mistakes. Sam may make mistakes, but the main thing is he is in good faith on everything he is doing.
The second important thing is the current projects. We all know that if NSE can prove the commercially viable reserves in Goldwyer project, NSE will be ten bagger from here (30c) to $3 at least, maybe next year or after,.. the time is no problem if you can wait. (I can wait as I am doing most of the investment through my family SMSF).
Merlinleigh is high probability project. The conventional or unconventional success in that project will add at least $150m to our market cap. That is about 60c on top today's price. (You can find more detail about this project on our other threads, I don't want to repeat the things here)
Laurel project is going to add value much later but not in one year time I reckon.
We have over $60m cash. Cash is the king now. We can buy anything we like. See many other junior explorer stocks have come down to 1/5, 1/10 values of what they have been 1.5 years ago. It is terrible atm.
And this is the most exciting part; the new acquisitions. We talk about this a lot on the other threads too. We were talking about PetroFrontier (Canadian explorer in georgina Basin of NT), its market cap is around $12m..! It's nothing. They have 14m gross acres in that prospective basin. Everything is so cheap now.
In REY's situation; when I first started to post my research on REY threads, there was no ASF Group issue in May 2012. They came later than me, they bought 25m shares on June or July (not sure now) and asked for another 90m shares. You can see on REY's threads, I was totally against of selling 90m shares to ASF group as REY would lose the control. The management did what they want to do, sold 90m shares to ASF Group in Sept.2012 and lost the control later on Nov. 2012. This is a new model of Chinese takeover. The Chinese comes to Australia, setup a company here and buy the shares of target Australian company, and take the control. Very easy. No FIRB approval is needed and no one can see that the company is in Chinese control.
Stupid us !
So we lost on that stock. There is nothing to do anymore. Its' gone IMO.
NSE Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
