Optionstrader how about the other quotes of Warren Buffett's,
"I realized technical analysis didn’t work when I turned the charts upside down and didn’t get a different answer”
or
“If past history was all there was to the game, the richest people would be librarians.”
It is hypercritical to quote Buffet anyway in the context of NEN, he would't touch a speculative company like this no matter what the price was and no matter how de-risked.
I agree with your technicals whereby strong volume and a close above 30cents is needed for movement up, but your whole explanation is off.
The shareprice has tracked lower but it is not due to market sentiment. The ASX is at 4400, so if anything this stock should be back above 40 cents. Telstra was not the only stock moving up so where companies like MAD. I wouldn't think MAD classified as a dividend yielder.
Back 6 months ago the only thing in my opinion that would drive the sp was Vietnam, this is why i believe the sp tracked lower due to people waiting until next year.
When the cr was announced two things changed, one the sp was to be suppressed until a Paloma update justified the raising and two the potential upside of Paloma may be larger than most expect from a purely speculative perspective at the moment.
However there is no question in my mind Paloma is underrated, reading the discussion on OXY or 'tealeafs' in your opinion, illustrate the significance placed upon Paloma by other 'big boy players' with Oxy the third biggest international oil and gas exploration and production company in the USA by market cap.
If you did the research on NENs management, chances are you would of noticed they are not the type to dilute holders unless there was a real chance to enhance the companys value. There historical basis is backed by their prudent and methodical management of NEN, producing assets, a significant joint venture partner in Vietnam, no debt and continually adding new prospects to the portfolio.
But hey there's a first time for everything, right ?
I struggle to find a better risk/reward play then NEN, and you are right current levels are a good opportunity to buy. But it is easy to say in hindsight, when looking at the facts, so was 40 cents.
The discussion that goes on in this stock thread is generally not of the tea leaf type, i might be mistaken but you did not mention the cr once in your post. I would think that would be one important element for discussion. Or the Paloma announcement around the corner.
If you are purely trading on technicals, or supply and demand as you mention all those points of resistance change with more shares being issued for starters in my opinion.
Also the technicals would of been great in AOL - from 4 cents to 19 cents then back to 4 cents. If you were not reading up on the background and the substance of announcements you may of been caught out. And of course you may say well i would of been out well before but the window was only a couple of weeks, technicals wouldn't of saved you there.
Also in case you didn't realise this is a discussion forum, one would assume it's primary purpose is to provide a platform for discussion. And such discussion, whether on old or new articles is not intended nor should be intended to influence the sp.
By the way your comment;
"Now your trading with the big boys......how does it feel? Good luck"
- I will let you know when the big boy gets here.
NEN Price at posting:
28.5¢ Sentiment: Hold Disclosure: Held
