events and price thoughts, page-7

NEN has promising hard resources no doubt but is in the same situation as many companies with the right stuff in the ground. The difficult question relates to execution risk - (1) does the company have the right people to take it from A to B and (2) do they have or can they source sufficient capital to keep the machinery lubricated and running till the said A to B transit is done successfully. I think this is where many investors lose out, either by having their money go slowly up in smoke or in doing all the patient investing and then have opportunists appropriate most of the gains. Two cases come to mind - at EGN long suffering SHs got hit by an insult added to injury with the major holder making them a lowball offer and MEO with investors being entertained by duster after duster. Like I said, it is a tough call.