Okay, its now last call for drinks. The SPP offer closes Monday so anybody who hasn't made a decision yet has to get their skates on.
As expected the price weakness during the offer open period occurred although at wasn't nearly as weak as some predicted. I predicted 29c on the day the SPP was announced and that was the price I purchased more for a few days back. It did go to 28c for two days back but now that the SPP option is drying up the price is rebounding as usually happens in these situations.
There are of coarse still a few nervous Nellies selling on the expectation that there will be a dump from placement recipients. That could of course happen but I'm not really expecting it so that weakness should also dry up in coming days.
It seems to me that anybody who wanted to top up would be more likely to have already purchased to their desired level during the last week or so at a price cheaper than the SSP price, or be eyeing the market today thinking that 29c looks better than 30c. Not only is the price better that way but also provides guarantees re quantity that we can't get via the SPP applicatiomn process. This raises the obvious notion that the SPP will be massively undersubscribed which of course infers that any applicants are likely to get their fill.
Since this situation places presure on existing holders to make financial decisions in the next day or so, there is likely to be subdued buying from existing holders next week. Next week will likely see this stalemate resolved one way or another but my guess is that the price will start to drift back towards the high 30s.
If management provide some encouraging news that we could get some more decisive action which would be nice. Still a waiting game I'm afraid I feel that NEN has held up well through the last two weeks which bodes well for the next few.
NEN Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
