From todays The Bulletin with Newsweek,
The Speculator
Another battler we’ve looked at before is Nuenco (ASX code: NEO), now trading around 4¢ with a market capitalisation of $21m. This Aussie company has 50% in two projects in California, including a gas discovery that’s initially producing 2.9 million cubic feet a day.
The company expects to complete a pipeline with a capacity of 20 million cubic feet a day, and then to sign a contract before the end of the year to sell as much as 6 million cubic feet a day into the network. A commissioned report from research agent Aegis Equities gives the company a current weight average value of 8.4¢ a share with a lot of upside if it meets its target. The company is sweating on the conversion of options, with a strike price at 5¢ by February 16 to raise $15.73m options. Bold punters buying at around 4¢ could possibly make a quick return if the company’s backers manage to get the share price up beyond the exercise price.
NEO
nuenco nl
