NWE 0.00% 5.6¢ norwest energy nl

proactive investors post, page-64

  1. TBE
    3,734 Posts.
    I understand they are freecarried on A-2 and they have enough cash for another 9 months.

    Of course they won't wait until then, but it's unlikely they will raise any capital in the next 3 months.

    The questions isn't whether NWE will eventually need more capital but whether the requirement for more capital is a reason to stay out of the stock to avoid dilution.

    IMO it clearly isn't as the full benefits of the frack results will be priced into the stock long before NWE will need to raise any more capital.

    Furthermore, NWE may in fact be able to put the HCSS into production right away if it proves commercial, thus adding cashflow immediately and delaying the need for further capital until we have even more information priced into the stock.


    So is a potential capital raising in 3-6 months a reason to stay out of the stock? Absolutely not. It's not even a consideration.

 
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