NWE is a long play. It will have the character of occasional bursts of excellent news followed by long fallow periods while next milestones are achieved. During all this, the market will dictate reaction.
Right now the NWE stalwarts are pretty much fully bought up and have little ability to put upward push pressure on the sp other than positive discussion. New blood is generally highly cautious in this period of market corrections and poor global economies. They are also unlikely to feel any great urgency to take a position as time is on their side until the next significant price moving milestone.
The next significant price mover(s) in my opinion will be related to resource sizing or further success with drilling late this year. In the meantime we will be in a holding pattern. Should the general market improve, overall upward price pressure should come from new players entering the stock enhanced by old hands that may have accumulated new funds in the interim.
For the present the pulling power is downwards as seen last week, not because the NWE story has changed for the worse but simply sellers have far more macro reasons to sell at a time when the generally well informed are pretty much at capacity. We just do not have enough volume buyers to offset seller volumes.
Taking the micro view, the NWE story is one of the best oil spec stories in recent years. The market and economy with all their ups and downs are unlikely to alter the quality of this story and ultimately will not hold the sp back when foundation milestones are locked in, like resource size.
We just have to be patient, probably for longer than we would like .
NWE Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
