I first held an interest in Neppy through the IPO. At the time, I liked the potential of Clive’s technology (and still do, obviously) so I got involved with a humble investment at the outset.
I watched that investment grow in value right through the heady days when the sp was around $1.50 only to see it fall back, at which time, I bailed out for an average of around $1.20.
I fine return, indeed.
I then watched the sp continue to fall and started to buy again around 40c only to see it fall even further before the 2:1 rights issue was announced.
At that time, I picked up as many as I could afford under 30c and, after the rights issue, I had a significant holding with an average cost of 26c.
So, I have enjoyed the fantastic turn-around brought about by the brilliant appointment of Chris Lange and the subsequent acquisitions under Neppy’s “Strategy for Growth”.
Therefore, at current prices, it makes a lot of sense for long-term holders, like me, to take-up all of the entitlements under the 1:20 issue – which I will, and to give you some idea of where I am coming from, that involves well in excess of 50k new shares.
As for Clive, I cannot comment on his motives for selling his entire holding.
I agree, it doesn’t make a lot of sense from a long-term financial viewpoint to sell prior to a company reaching anywhere near its full potential unless you believe there is something which will prevent that company from doing so or you have a more compelling project/s in need of funding (and that could arise from a simple desire to increase your standard of living).
However, I wouldn’t be surprised if Clive’s sell-off has been brought about by him being a little cheesed off over the way he seems to have been pushed into the background following the rapid advancement of Neppy under the expertise of Chris Lange.
Clearly, there is now far greater technical expertise available from within the consolidated operations of Neppy than ever before, and Clive could well feel that his value is no longer appreciated or required (the recent announcement of his moving on from his position on the Board was pretty low key and, probably, confirms that Neppy has replaced old-fashioned sentiment with cold-blooded corporate precision).
That, together with the likely attraction of other projects requiring significant funding, in my opinion, has brought Clive to his decision to sell rather than the possibility of Neppy hitting foreseeable hurdles or even failing.
The involvement of Macquarie and the level of interest in the recent placement amongst sophisticated investors affords me sufficient comfort to hold on for what I expect will be fantastic returns in the very near future.
Cheers.
NMS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
