There are 5 additions to the ASX200 announcement…and one of them...

There are 5 additions to the ASX200 announcement…and one of them (PDN) has done what you queried (and more). PDN fell from loft heights to microcap losing 98% of its value…now it has returned to ASX200 and it has yet to make any money. Here is not the place to chat Uranium but it won’t be a surprise if the company makes it to ASX100 over the next few years.

Turning to NEA … I think the share price just got a long way ahead of itself back at its highs…and so a fall was unsurprising. (Many examples can be found of companies this has occurred ).
The depth of the fall admittedly is surprising…. Especially as top line growth and gross profit remains positively trending.
I’m new to NEA having just come on board with a modest holding which I hope to build once turnaround becomes evident or as long business metrics continue to progress favourably (and hence intrinsic value grows) even if unrecognised in SP.

I’m not sure why NEA fell so far. There is the litigation uncertainty but it pertains to roofing part of business which is 4% of NEA so even if found against NEA and they lost this part of the business - it’s hard to see it’s impact would be huge. NEA management voted with their $$ with several directors adding to personal holdings in NEA when litigation news saw initial share price drop.

Currently there is a bit of market rotation out of tech into value so that trend doesn’t favor NEA but as long as management keeps delivering growth I will be expecting NEA’s SP decline to reverse at some point. Given time i will be surprised not to see NEA return to ASX200 over next 24month.

Would welcome others comments on decline…