Quick back of the envelope calculation, but IF they can manage to get back to the previous level of profit, then with that many shares on issue and assuming a P/E ratio of 10 then the sp would only recover to a measily 17c.. so if buying at 8c and considering the risk It hardly sounds attractive to me, especially when you consider the track record!!
Personally I think that the only reason they they got to the level of profit they did was because they bought those profits, and were incapable of actually keeping them going...
The last time I was in this situation was when they did a 3 for 1 rights issue at 20c. I didn't buy then and regretted as the share price rocketed afterwoulds despite the dilution. This time around though I think the situation is VERY different... back then they only had nepsys and were winning a few contracts, and there was huge potential.... now I won't even try to put into words how I feel about them.
I woke up this morning with the feeling I should sell my NMS. Why am I always to late in coming to these realisations...
I might try and offload on open, or maybe I will bottom draw them, seems my gut feel was right (and I ignored it) yet again :(
I hope everyone votes no to CL's performance rights, IMO he does not even deserve a job little own a reward!
Tony.
NMS Price at posting:
8.4¢ Sentiment: ST Sell Disclosure: Held
