thecrabpest...I do understand your frustration..Very often the darkest hour is just before the dawn breaks through... and I agree with you that new technologies have many issues .Many technologies( although sprooked by management) have limited application in the real world and often die in the dark...other technologies are needed more and more in a changing economy and swing to success by the power of market forces eventually driving them through to growth with profits. Management ..Incompetent or Competent are carried along with the trail blazed by the market forces ,however many may come but few are finally chosen!!!! NMT may have recently become such a prospective case ..as I said looking into the past is now past and in most of our lives we hopefully face a better tomorrow ...we must not place yesterdays frustrations on today or tomorrows opportunities....life for individuals and companies goes on hopefully ...with a positive spirit.
Let's hope the power and skills of Mercedes light a brighter candle for NMT and the technology on battery recycling becomes a much needed successful enterprise with growth and a profitable outcome for all.
I should mention I rarely buy a share that's price is much above its book value and prefer where possible to buy below book value ..the book value of NMT is 16/17 cents, I purchased at 19 cents...Now twice to three times book value can often be a successful outcome( on the back of a growing book value) or In the case of another share.. as an example ..Pen the book value is about 1 c and it's trading at 13c...well out of whack with reality or I would guess also with a takeover price...but you can never be sure with takeovers of any company ..sometimes idiotic prices are paid at quite ridiculous multiples of book value leading to an almighty crash and burn as the takeover is fuelled by copious quantities of debt from the multiple stupidity of Bankers!!!! Checking the book value or the break up value is the best way" to ground our expectations closer to reality"...I noted that in the last few years that NMT's book value only got to about 23c or so ..based mostly on its cash position.. yet it's price hit ridiculous levels which were completely out of whack with the true underlying value..(I mean even if you were a smoker and addicted and you were paying $40 a pack ...would you pay $400 a pack to try a new brand !!!???)
My final note would be while I do give growth a chance if I do not see profits being generated from rising revenue or from paying huge salaries or ridiculous bonuses being given to directors and management or an imbalanced debt build up ...I cut my losses and move on( Let it be absolutely clear ....I do not blindly and stupidly hold on to any share) .I also sell half of my holding if the price doubles....and put that in my cash reserve ...I trust some of the precautions I use to limit my risk ..if applied ..may help you to reduce your frustrations somewhat in the future.. On another note "hopefully management" have learned from their past forays and have now instituted better evaluation methodologies and better over all controls of excessive aspirations..I believe that the Mercedes contract is a very positive sign for now and for the future.
Unfortunately from my experience this is only very rarely the case and once stuck with poor management it's usually "the company's Natural independent successful growth and profit generation driven by market forces" that outlasts and outgrows the incompetence of the poor Executives who at their best turn up and do nothing to impede the "Market Driven Success" ... Good luck. All the best to All.
NMT Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
