nst fair value .50 to .60, page-12

Yes a 50-60c SP is ridiculous and highly unlikely, but can never completely discount what the market will do.

If companies were never ridiculously undervalued, I wouldn't even be in the stockmarket since its those companies I get into.

Sometimes companies just have a really bad time of it and drop well below where they should be. And it's these companies I generally look for. Again (as per a previous post) using IGO as an example, I remember when it fell from its peak of around $9.80 to around $1.10 even though at the time they had a heap of cash (think it was close to their market cap!) and were still producing nickel at a huge profit (see the 7 month period bw Feb 08 and Nov 08). That was an EXTREME example of how stupid the market can be (though it was overvalued at its peak).

Unfortunately sometimes it happens to stocks you already hold, but usually that's just a reason to top up.

If NST dropped to the 50-60c range I would probably sell EVERY other share I own (except SYR) and switch, unless there was a very good reason for the drop (ie gold price crashing, Paulsens for whatever reasons shutting down etc). Heck, I'm even considering it at the current SP.

Cdchi1