I am always interested in why investors "average down". I am not against doing so but in respect of NWE what are the catalysts that those pursuing that option see?:
1) Is Arrowsmith commercial? The company has not given any compelling argument to suggest this in recent times. They don't know so there are real risks.
2) The funding issues have been well discussed here.
3) The company is a long way away from achieving operating cash flows.
4) Asset monetisation has been slow, slow, slow. Does the company have its finger in too many pies?
5) The investors see value in buying more stock but the directors don't seem to?
6) There are no near-term catalysts so there are opportunity costs involved in buying this stock and seeing no appreciation in the forseeable future.
NWE Price at posting:
1.1¢ Sentiment: None Disclosure: Held
