trotty, vcj et al - I think there are a lot of us LT holders geared up in the same direction for a free carry. What it has meant for me, and I suspect for many others, is that NEN now takes up most of my portfolio.
There is risk (I see some say 40% chance of finding anything on 105) and opportunity cost. However, on this occasion the risk/reward favours the LT holders playing the free carry (it doesn't always work this way).
However, you significantly multiply your risk/reward when you double up - no free carry (all/nothing).
But when you look at the sp/ann dynamics it comes down to buy on drill and sell on news - regardless of the news +/-. sp always (nearly) dips on news/ann - so sell down pre-ann, then buy back (some, if you want to hold long term) after the dip stabilises.
Like, we're talking about some time between successful drill results to production - sometimes years.
NEN Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
