Viennalager,Yes, you have a point. The recent pullback of about...

Viennalager,

Yes, you have a point. The recent pullback of about 11% is what has made me get in now, although there can certainly be further downward pressure. I have a number of defensive stocks in my portfolio and if NKP puls back significantly I will sell there to top up at the lower prices.

Also I make sure that no more than 3-5%(maximum) of my total portfolio is invested in any one share like NKWE. I hold 3 times as more PLA which although it has its problems at the moment is a low risk bet compared to NKP but has good potential as well.

NKP share of the two platinum mines has an NPV of more than US$1.5 billion (and at lower PGM prices than today) as against market cap of A$350 million, seems to make long term sense. especially if all construction costs are to be funded by Xstrata. Factor in today's PGM prices and positive sentiment recently expressed on Rhodium and Palladium and that should imply an NPV well above US$2 billion.

Opportunity cost of not being in NKP seems to outway the risks for me.

BR
Max