Who's Game?

How about a little weekend game?

Without knowing squat about the NCO deal, where do we think it’ll resume trade? It’s sometimes fun feeling like a fool, so who’s in?

Given that I am proposing the game, guess I’ll go first:

My minimum target is 1.8c. This would give a market cap of about $6.2m and an EV of about $5.8m – still very cheap for a pristine shell with a new deal; but who knows what the deal is? I arrived at this number as follows. NCO ran from .003 to .009 – a 200% increase. It then corrected 50% of that move to 006 and closed at 007. If NCO appreciated 200% from .003, it can appreciate 200% again to 1.8c.

My more serious target is 4.4c which would give a cap of about $15.2m with an EV of about $14.8m. How did I arrive at this number? I contacted a good mate who is a brilliant TA and used to work as the TA for a very prominent broking house. I said, “Mate, where is NCO going?” He responded, “The first real target is 4.4c.” Nothing like having mates who are better at TA than you are.

Have a great weekend and let’s hear your opinions.