re: Ann: NEWSAT SIGNS $40 MILLION CONTRACT FO...
Please.
A share consolidation, as with a share split has absolutely no impact on the quality or viability of the % of the company that you initially purchased.
It doesn't matter it it consolidated from 1 share to 50, or 1 to 50,000 the portion of the company you purchased a stake in remains the exact same.
There are a lot of people who post on these forums who are grossly misinformed, there is 0 comparison between a share dilution (which reduces your stake in the company) and a share consolidation (which merely maneuvers the trading price of the stock to a more realistic trading range for future trading). Please do not allow this to cloud your judgment on the company.
The only impact a contraction can possibly have is attracting larger fund managers and institutional investors that were previously unable to invest in shares trading at a fraction of a cent, as previously stated in NWT announcements.
That is not saying it will attract such buyers, but the belief of many(including my own) is that it is likely and that NWT will leverage its new, more favorable trading range with the aid of progress announcements to attract increased demand to a stock that has proven significant upside potential.
No one will tell you that NWT's post consolidation price of 45-50 cents (based on pre-consol. price of .09-.1) is not drastically undervalued relative to the direction that this company is heading. The giant difference between the solid earnings based projections of the analyst reports linked off the Newsat website and the incredibly low share price you have bought in at shows and incredible degree of risk being factored into this share price. It's simple, if you think that NWT's Jubiru's can be as successful as they claim, then hold or accumulate. Don't concern yourself with consolidations and even think twice before panicking on the back of heavy lending or moderate dilution as a means of increasing funding. This share price has so much of those fears factored into it that it should stun holders if there is no funding issues, not the other way around.
There is a strong opportunity here to make multiple fold your investment within a few years. But I have invested what I can afford to lose, with the kind of money NWT is going to need, compared to the low equity base behind them, if things don't pan out, there will be nothing left of what you put in.
This is the broad situation you are in. There are some people on these forums with great insight and tips, I'm not offering that. I'm just telling you what you are holding and to take everything you read with a grain of salt, including what is released from company sources. Always remember what kind of stock this is, what the upsides are and the significant possibility of disruption given market conditions and the enormous scale/funding of these projects.
There are always gamblers that will tell you that this will HAVE to triple in 12 months and chicken little's, to whom 'the sky is always falling,' who are convinced we are heading back to the stone-age in the next recession. However the average poster knows no more than the average reader, believe this and make sure you are investing in something that you believe in, not that the 2 people either side of you believe in as is the default human reaction. ref. late 1990's I.T. boom.
Humans are far to impressionable to be good investors from birth, train yourself. Always remember what made you buy the stock yesterday, or drives you to buy it today and leave the stock only when that reason no longer exists.
NWT Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
