End of year tax loss/gain selling started and presumably market is waiting to see next quarterly results before any potential upward movement. On its own, the valuation is somewhat higher by analysts than current price. But then along comes GORO.
Not sure how analysts view the potential acquisition in terms of value - upside or downside. If acquisition goes through how long will it take to generate positive earnings and add to the bottom line? Will NCZ go through another year or two of propping up, modify and fine tune a plant to achieve any meaningful earnings? Until DD is finalised, there are a number of unknown factors which we don't know about and can only theorize about. Even if and when a deal is made it will take time to implement any necessary changes and with associated dangers of achieving desired results. Risks are a little higher also due to being outside of Oz.
Like management's enthusiasm, though they need to be on the ball and hopefully get the market to like the deal as well - if they do and can deliver then it makes one wonder whether this will get to $1 and if so what time frame - Sixty days - now that would surely be nice.
NCZ Price at posting:
20.5¢ Sentiment: Hold Disclosure: Held
