The way I see it as a shareholder is that the buying by Evolution etc is a good thing! They are trying to take advantage of a situation where the asset backing per share is more than the current price. They currently have 14% and look like they may try and go to 20%, another 30 million shares or so. Why wouldnt they buy cash for less than value, 3.5 cents for about 4 cents. They also say they will offer 3.5 cents for 30% of every sharehloding. I suspect they may adjust that! They are trying to get control at a discount. Will, say a 20% shareholding get them control at a shareholder meeting, maybe! Where does that leave us as shareholders? In my view they may not get control with 20% or there could easily be a bun fight for control with further buying by the Board and friends to keep control, in that case the shares should go close to asset backing or slightly over [4 to 4.3, notice the shares on the market around there]. If control changes we are left with at least 20% and up to 50% in the new groups hands, ie 110 to 250 million shares tied up so the free float will be much less meaning the shares will be much more volitile. If i bought 20 to 50 % of a company with my money i would want to do something very sexy with it to make the shares rise and it would be much easier with all that script in friendly hands. What would i want to make , at least double or more which says to me there is potential large upside from here over time and very little risk. Good luck to shareholders
NEN Price at posting:
3.5¢ Sentiment: Hold Disclosure: Held
