In a roundabout way, MIN purchasing on market and the value of...

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fairmoodz

85 Posts.

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15/01/22

10:08

Post #: 58884569
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Originally posted by Brobel ↑

Got to love the market! 2 days ago NWE was sitting at 2.5c... in drift mode... and I wrote that soon we will creep up over 3c.. well here we are 2 days later and up over 20%. I'm surprised it moved this quickly but hey, that's the market - hard to predict. And the volume is looking great too... people want in... and for most of us here, we all know why.

So today's 50m+ shares traded looks to be the highest volume in over 3 months. Funny... for most of Dec NWE only broke 20m traded... twice... and was regularly sitting at 2.1c... the unloved duckling. Now buyers are scrambling for stock at 3c, circa 43% higher than a month ago, when they could have stocked up at bargain prices only weeks earlier.... funny market isn't it.

If anything this just proves to most of us investors that don't day-trade (which is me), to hold and sit tight, back your conviction and don't get too caught up in the day to day movement. Perhaps even buy on weaknesses if you are super confident in the macro and micro thematics.

Also, was just looking at MIN's holding update from yesterday. So they have been diluted down due to the options conversion... currently sitting at 18.78%. Let's assume all remaining options are exercised... that'll drop MINs holding down to 17.48% (note, MIN don't hold any options themselves).

As has happened in the past when MIN was diluted, I expect MIN to buy on market to bring their blocking stake back to ~19.88%. That's another ~148m shares they need to buy on market... which is likely to happen once all options are exercised post 24th Jan. That much buying when so little shares are on offer will only mean one thing for the SP. Did someone say 5c+?

Unless... MIN simply wait for the flow test results in Feb and assuming it's fireworks.... make the final move on NWE.

50/50 in my mind.

Very happy to sit and watch this play out.

GLTA

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In a roundabout way, MIN purchasing on market and the value of NWE goes up, this places a higher value on the JV coy, thus MINs JV ownership value increases more than what was spent on NWE on market. Thats a MIN WIN WIN!

NWE Price at posting: 3.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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