I know my post might seem glib to you, but many have been hanging onto this very announcement in anticipation of a rising SP. Perhaps they've been holding off selling out...maybe they won't wait much longer?
They have been expecting it to result in a re-rating of NWE. I didn't think this would happen in the current market climate.
So NWE is now faced with a situation where it needs to find a way to fund a horizontal frack by raising capital at +2 year lows.
Does that appeal to you?
Like I said previously, NWE needs a bit of a miracle to avoid significant dilution.
By my estimates, NWE will need about 4-6m to fund its share of the horizontal well. That's about 20-30% of the current market cap, if it doesn't drop further.
I really hope it doesn't because
1. I'm not looking to enter in NWE at all and
2. many of the posters here have ridden NWE with me and I've no desire to see people lose money.
I've always been honest in my posts, it just so happens that my opinion has turned negative on NWE's prospects pre-capital raising.
I'll think about it again once they have confirmed the horizontal program and funding.
until then, good luck folks. My sentiment has gone from LT buy to None.
NWE Price at posting:
2.3¢ Sentiment: None Disclosure: Not Held
