This off to the company secretary, ASIC and I guess ASX if I can get an email address... dam dam dam!
------------------------------------------------ Northern Iron Limited (NFE) is traded on the ASX.
It published it annual report dated 8 March 2013. With an unqualified audit opinion, the company reported net assets of $279 million. At that time the company market capitalisation was approximately $220 million.
Since that date until close of trading 6 June 2013 (90 days) the ASX has traded approximately 61 million shares on market. The total value of sales per the ASX is approximately $9.4 million.
As at the close of business last night NFE had a market capitalisation of only $24 million.
Approximately $196 million market capitalisations has been eroded in less than 90 days on the basis of trading of $9.4 million.
This outcome looks in every way the result of deliberate manipulation. In the last two days, watching the after market auction ( ie to 4.10 pm), a residual seller of 2 shares at the days lowest price is there. The selling volume is perfectly matched at the lowest price for the day but for 2 shares.
To date the company has been all but silent, offering no explanation or guidance as to this dramatic demise.
In summary: Directors 90 days ago published a report declaring assets had a value of $280m. In 90 days that valuations has been discarded in which case: (a) the valuation was hopeless incorrect; (b) the market is being manipulated; (c) directors have failed to declare a material event of disclosure in the interim.
