As far as I understand , the share price is supposed to be valued by market cap.
We don't really know the true value of NIDO but surely its worth more than $35 million dollars on today's market cap.
Nido , thanks to the consolidation and market settlement has investors psychologically avoiding the $1,40 share price which was 2.8 cents per-consolidation.
With market sentiment for oil stocks and the increased debt that's to be serviced with a low oil price I would suggest that the Nido directors acted irresponsibly at this point in time. A 1 or 50 was extreme in my opinion and has no added benefit to our market cap in fact it had a reversal effect.
Some of us understand that a tightly held stock has enormous leverage in times of new discoveries or good news but sadly this is not the case with NIDO.
Thats why I have come to the conclusion that the management of this company continued down this path with the intention to issue more shares and raise more capital, especially now that it appears undervalued.
I guess time will tell
Chass
NDO Price at posting:
70.0¢ Sentiment: Hold Disclosure: Held
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