Ann: Share Purchase Plan Opens, page-9

Despite my cynicism above, I retain a "buy" sentiment on POS. Ni prices are fabulous and likely to stay that way for a long while. POS does have the infrastructure, a reasonable resource, and good prospects of expanding that. They even have a reasonably credible plan, and the numbers show excellent profitability.

What they lack is credibility, after years of disappointment. A lot of that was due to depressed Ni prices, which was not the fault of POS, but the very sloooooow progress since Ni prices improved has been trying on the patience of long term holders.

Past experience tells me that after every CR they have done, the share price has fallen below the SPP offer price. (I'm going off painful memory here. I can't be bothered going back to check the detail. Zeb may be able to correct me if I am wrong).

So if that happens again, then the SPP offer of 3.5 cent is not a good buy. On the POSitive side, if you buy through the SPP then it is extra cash for the company and you would be helping them survive until they can (finally!) complete all studies and secure major funding and an off take agreement and actually commence the start up process - though with the required refurb of plant etc that will itself take a while.

Assuming all that happens, and they actually become a mining company, then 3.5 cents will eventually look like a ridiculous bargain.

There are various conspiracy theories floating around POS, and it has certainly become my personal dog investment, but actually I think the intentions of management are genuine, and their prospects for eventual success are now very strong. It reminds me a bit of when Lynas was one of the most hated stocks on the ASX, with a performance and share price that just couldn't do anything but disappoint. I held on through the worst of it, but when they started to turn around I sold as soon as I could show a modest profit - even though my head told me that the fundamentals were good for longer term major success. In retrospect that was very foolish of me. I only sold because the period of under performance had been so damn bruising, at a time when I didn't have much in the way of other assets.

This time around I am holding to see what happens, because I do believe the fundamentals are strong, and I will probably back that judgement with some cash and take up the SPP offer - but I am possibly more patient than most people.

Besides - it gives me a reason to read the POS forum here on HC, which has given me quite a bit of entertainment through the long (very long) wait for (hopefully) eventual success. I'm waiting for the day when @georgeaux can move out of his cardboard box and @tomboy can claim he was right all along (not that he has ever stopped making such claims). Maybe we will even find out the true identity of @Fredy . Who knows what the future might bring....

Sigh

Dave