Pogo the beginning of the end

NST have been a great company and performed sensationally over the past 10 years. It was unquestionably overvalued - but a lot of people made a lot of money.

That is now not the case as shareholders are counting the losses. NST's share price is in free-fall and has, as predicted by many, dropped off from a high, a few months ago, of $14 slipping to under $9 - that's around 35% fall and a market cap loss of $3B. You heard me correctly $3 Billion dollars!!

But it now appears as though their ridiculously overpaid Executive Chairman Bill Beament (annual reports state remuneration for 2017 - $7.4M and 2018 - $5.5M ) who is dumping his stock (sold 70% in the last 3 years) faster than he can issue himself performance rights has made the decision that will be his undoing.

History records a plethora of bad business decisions from Blockbuster rejecting Netflix to NST buying Pogo! Let's be honest Pogo is lemon. You can't, as they say "put lipstick on a pig". Beament has travelled the world espousing Pogo's virtues. Dig deeper and Pogo's cost to produce exceeds the golds value...and that is in a market where gold is at an all time high. Profit is the fundamental of business, NST's slick marketing will run a distant second to the accountants who always take over at the end of the day!

The volatility of gold will see the price retreat...as sure as 'night follows day' the price will lower. NST will then be exposed as a high cost producer that the market will be savage on.

IMO NST are today worth nearer to $4 - so watch that market cap blow out to a $6B fall. If you are a savvy investor who have been caught up in this maelstrom it is time for you to be pragmatic and protect your position. Beament has with his 70% insider trading over the past 3 years.

Nosetradamus knows all (or so I like to tell people haha) - here is my 2022 prediction. NST at $3.40 with a new Executive Chairman at the helm.