I agree - there is a tension between the stock coming from an illiquid past to a recent growth in trading activity.
On the one hand you might say it is a blip on an otherwise slow stock, but I am leaning towards the notion that the progress made by the company has caused investors to take notice of the stock.
There was no doubt in my mind that it was undervalued at $5m-$10m market capitalisation and I am equally certain that the company is undervalued if any or all of the following are true: (1) the terms of the JV with Newcrest are announced and valuable for NTL; (2) Amer International provides capex funding, thereby bringing to end the need for capital raising (my view is that NTL has between $650-$900k in the bank, or so); (3) NTL does actually achieve its target of revenue from the Talisman mine within 6 months.
On that basis, we can summarise my view of one that the company was grossly undervalued and could currently be grossly undervalued - however I agree with you that the sudden rise in price (albeit looking at the annual charts it looks like a reversion to the mean rather than a bluesky breakout) may cause some profit taking or consolidation therefore reduce some upwards momentum.
But you are probably abundantly aware of my views about where this company is placed on a continuum between now and being a fully valued gold producer...
NTL Price at posting:
1.7¢ Sentiment: Buy Disclosure: Held
