Hello Kezza and all other replies, many thanks for taking the time for your insight. My post was to help inject a different angle, get people to really look behind the scene and see it as it is and for what is actually happening and why it is happening.
BRR interview with Ken and i quote "How do you fund it, until you know what it is?" In my opinion "It is" should have come first and "Fund it" should have come second. Although it is holds Risk! So better to take Risk and Fund it up front, just in case the results are not as good as it is as first portrayed. Which is text book economics 101.
The XAO & XJO has recovered from the May/June sell off and is slightly higher than 9 months ago, but generally large Resource stocks and most speculative shares are alot lower in price than they were 9 months ago. A few examples:
Huge shift out of Resource Stocks into the Defensive stocks such as the likes of Heathcare and Banks. In January 2012 BHP Approx $38 NOW $33.04 Loss 13% EV 15% RIO Approx $70 $53.31 Loss 24% EV 31% OZL Approx $11 $6.72 Loss 39% EV 63% Everyone's Fav RXM Approx $1.60 $0.60 Loss 60% EV160% PNA Approx $3.50 $3.08 Loss 12% EV 14% Oil Price Approx Jan $100 $92 Loss 8% EV 9% STO $13.50 $11.36 Loss 16% EV 19% WPL $34 $33.12 Loss 2.5%EV 3% Everyone's Fav LNC $1.40 $0.625 Loss 55% EV125% TAP $0.72 $0.725 EV We have a Winner OSH $6.60 $7.43 GAIN 12.5% HA HA Of course i know that there are many winners, none greater that SIR, and congratulations to everyone, who were able to get on board at low prices.
Getting back to the main point. Neon, unlike SIR, for some unfounded reason, have not been able to influence the market in any capacity, on three successful wells of finding black gold.
I reiterate this main point - Neon share price over the last 9 months is in a huge treading down channel pattern. Not even finding hydrocarbons, which is what speculative oil companies do for a living,has been able to change the direction of its share price.
Neon has a great management team, a great story with huge upside potential, but even the greatest of managers with 3 successful wells drilled at Paloma have not been able to get the full support and influence the market where the buyers become more bullish.
I am personally looking forward to Neon to prove PD 2 can flow oil at good rates, and in the future bring PD 1 & 2 wells into production, which will doulble the oil production of the company overnight and this will bring a re-rating near term and major increases in future revenue for the company.
As for MAD, when MAD had a CR, the share price took off! The share price did however, after a while drift back under the offer price for a brief period. In my opinion, Neon now has the ability with hopefully more success coming from PD 1 & 2 to be the next MAD story. This is where real tangible value will come from, increase Oil Flow = increase Revenues.
I have not mention Vietnam, because its not here and now. Thats up to 8 months away. Alot can happen between now and then. By then i could be floating with the Angels. Anyone who lives for what might be in 8 months, is not living life. Live for now, and enjoy it immensely, because tomorrow may never come. Those that live for what might be in 8 months, probably believe in Keyser Soze.
Good Luck
NEN Price at posting:
28.5¢ Sentiment: Hold Disclosure: Held
