A bit of retractions is OK, but today was a bit of an over reaction! I wasn't following the course of sales, so for all i know it could have been an orchestrated tree shake...
The SP did hit a 12 month high on Friday and with the RSI at 75, 0.046 was a resistance point and a market wide scare yesterday, when combined they may have spooked a few in to selling.
The knock on effect is stops getting hit, then it tumbles harder. If i said to you yesterday "here have my stock for 0.039" i'm sure many would have jumped at the chance. By that rationale you now have the chance to do it tomorrow. I'm sure many got stopped out today, and will look to re-enter.
Fundamentally nothing's changed, but having said that the comment about a bit of a delay in the farm out and cash reserves being low will have to be examined. Might have to look at the cash burn rate of late, but this is hardly the entire admin of Woodside were funding here, so even if there's only $1 mil in kitty, we should be OK for a while.
Gotta say I'd prefer the right deal gets done, than a rushed deal, as the shale scene will soon heat up.
I want to relax so i'm not going to analyse it too much tonight, just a few in case someone want's to take a quick look. Looks like Haspete's going to cover it tomorrow, and he's a master at the art.
NWE Price at posting:
3.9¢ Sentiment: LT Buy Disclosure: Held
