Here is what I've learned in the past fortnight since first hearing the story from a bloke who is well within the top 20 shareholders, and who, like most, is bleeding profusely:
1. That management is regarded highly by many of the shareholders; whether this is justified, who knows ? A lot of trust and hope is involved here.
2. That management is very naive in terms of how to manage release of information - the trading halt was farcical and as we know raised false hopes among the loyalists: not good for anyone.
3. That no-one has any idea how a company with obviously good ideas but few runs on the board can be capitalised at $38m, and how the same company at 15c was valued at well over $100m. Are they now worth $6om less than they were ? And why ? Are they going to earn $5m p.a. in the medium term to justify even the $38m ? Does anyone really think this is feasible? Perhaps it is, but it's a big punt.
4. That when the company runs low on cash, as it appears it will, there will be another placement which will shaft existing holders.
Despite all that, I'm going to hold my modest 1.3, and, like yourselves, hope and pray.
NOR Price at posting:
4.8¢ Sentiment: Hold Disclosure: Held
