You only wrote in very general terns as to what management could do to aid confidence in the market. What specifically could they have done in your view?
The short term price does not impact my investing style, so I am not able to speak for all holders. If you wish to know, I don't care less about the current price. It could be $0.001 of a cent for all I care. What I care about is whether there is stuff in the ground. I believe that if there is stuff in the ground, the share price will reflect this. The current short term price might be indicative of the fact there is nothing in the ground, but I don't rely on the hare price as a guide. I rely on announcements. So whilst it is disappointing to see the current price, should there be stuff in situ, I don't care.
I believe the company management has acted in the best interests of shareholders since 30 November 2011. When one looks at the capital raising, it appears that the company sought to survive on cash flow from operations to fund its operations. When it became apparent that the cash flows were restricted because of production hurdles, management went to the market. When one looks at production, management has sought to iron out bottlenecks by incorporating new techonology. It seems as though production issues will be resolved by year's end. When one looks at exploration, the company paid little to explore Tejon and KMD in the San Joaquin Basin. The Glau lease extension and the Asian propsects and arrangements look very exciting indeed.
Perhaps your criticism of the company trying to develop too much at once is valid. However, the response to that is that if the company knows where it stands on Paloma 1, 2 & 3, in the end it may lead to cheaper and more efficient outcomes for the company. It might be said the company was like a kid in a candy store who got an upset stomach for gorging on all the choice. I am prepared to accept that the company had good reason for acting the way they did in testing and exploring as they have. Having gone down that path I am prepared to stand by the decision at this point.
As for investing and dates being missed, where does one start? PXS, QRX, TIS, WPL etc. etc. etc. I am sick of hearing about dates not being met. Dates are indicative only. Management surely wouldn't proffer a date for it to be obviously wrong or not met. So when they proffer a date, I say it is done honestly with the information they have at that time. Do I wish in Neon's case dates were met earlier? Yes. Does it bother me? No. For mine it is the outcome. If there is no oil or gas anywhere go off, but until such time as the reasonable endeavours have been exhausted, when I bought my parcels of shares I knew that the land may be bone dry. I also knew that timelines are often predicted as too short. Don't get upset about timeline preidctions.
Perhaps you would be better to buy back in when production is occuring in Asia should that occur. You seem to hold a producers perspective when holding in this explorer (for the main part) company.
As for Dr. Watson being the brains and Holmes the understudy, I am not sure whether your were reading Sir Arthur Conan Doyle's stories or some other version. Dr. Watson never had the mental acuity of Homles, hence they made a good pair.
It is clear that with the other big players in the area in California, Neon has had difficulty getting equipment to conduct the testing as it would have liked. Unfortunately, the company is not able to use its size as a factor to get its hands on equipment.
I am not out to criticise anyone for expressing an opinion, far from it. I am not in a position to criticise your analysis of the company's decision not to test PD 1 and then move on. What I am saying is that when you invested you knew the weren't just testing PD 1 so your criticism, whilst it might well be well founded, loses much of its effect because it takes no one any further in understanding if their is oil and gas in the ground, and to my mind it seems like a sook. The hindsight aspect should lead you to not only criticise management, but to also criticise your own decision to buy shares in the company. It is the one sided view of your criticism I am noting.
The market will know all in the fullness of time. That will not be far away. Sellers today can sell all they like. If they are scared so be it. As I see it, there is no news today as to why the shareprice ought to drop from yesterday. I can't control the sellers and I can't begin to speculate why they have acted to sell. All I can say is I am not selling until the announcements are out, by which time I accept I may have done my money. That is the downside risk of investing in NEN. I don't need to setout the upside reward.
Ultimately, we all buy looking for the same upside price movement, but why we buy and why we sell can only be answered by those actors. I say until I know either way whether there is oil and/or gas I am holding, and no gripe at the 11th hour will move me or upset me, and neither will a share price fall.
GLTA
NEN Price at posting:
23.0¢ Sentiment: LT Buy Disclosure: Held
