Hi Peacepipe ... regarding the effects of the ending of The US Fed's Quantitive Easing ( QE2 ) on Nkwe ...
My thoughts are that it is not a foregone conclusion that the money printing will definitely be wound up in June, as anticipated. Although the US economic news has been a little better recently, there are still huge problems with their housing industry, and there is no certainty that the overall economic trend will stay positive between now and June. Any significant weakness will possibly pre-empt QE3, which would almost certainly be good for equities.
However, if QE2 is not immediately follwed by QE3, then I think there will be potential for a major correction in world-wide equities. In this environment, any large financial or geo-political shocks will have big repercussions for most companies share prices ... including Nkwe's.
I just hope that Nkwe has some major positive announcements over the next couple of months, in line with what they have stated to be their expectations for the upcoming BFS and JV. If this doesn't come to pass, then companies in Nkwe's situation can be virtually wiped out when confidence and credit dries up in times of extreme global financial weakness.
Time to finally meet those deadlines, PL and co !
Cheers,
Wayne
NKP Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
