Ann: Board and Management Changes-NST.AX, page-5

David Flanagan. Please WTF???

Let's hope he doesn't bring his curse along with him.

I've started to run some numbers off the back of 2016 financial reports for ASX gold stocks and so far NST is not standing out in value terms based on the valuation method I've adopted. Admittedly I'm not finished yet and the numbers are profit/earnings based and backward looking and don't account for anything other than liquid assets, nevertheless on those measures NST was not looking cheap on a June 30 2016 snap shot. I'm mindful to consider past performance rather than the guessing that goes along with future performance when it comes to trying to value these gold stocks. This method doesn't help pick a bolting horse like SBM but it helps to protect capital in the regular fray of the market.

This correction has me seriously reassessing my positions with respect to the sector and the market in general. 12 months ago many gold stocks where real bargains, now most are priced for long term success even after the recent falls.

I'll be looking to reverse the recent position I took in NST at $4.40 if it makes it back to that level and I'm starting to move to cash on some of the risker stocks where I've made good gains so far this year. You need to stop and take a long hard look sometimes and this correction in gold stocks although seemingly irrational is forcing that. If the values have run too hard there is just no getting around that fact. No one is immune from getting caught up in the excitement of the idea that the gold price is going to break out in a big way, but until that day comes you need to live and work with reality.

I'd say the scepticism in this post I made in early August has turned out to be right on the mark (price of NST at time of posting $5.16).

http://hotcopper.com.au/threads/ann...2828274/page-10?post_id=18442219#.V8dq46NJntQ

"Let me add there has been a lot of hot money coming into the ASX gold sector lately. MLX today also announcing a raising of $115.6 million. Even my little junior RMS raised $25 million just recently along with a bunch of others BDR etc

Why bother mining gold when you can mine the market at the moment? Good sign for gold going forward I suppose or are these institutional guys just getting to the party late?

One would think the instos know more than us but that's not always the case. Us little retail guys have been buying the rally for a long time now so I don't mind that the institutions have suddenly woken up to the opportunity. They normally say when the taxi driver starts buying its time to get out. It would be funny if the saying needs to get modified to "when the instos start buying its time to get out". We wait to see what the future holds."

Eshmun