I do not think that Institutions will jump on board. Too much stock is tied up in the hands of Genorah and Zijin. I also suspect that minorities are sitting on a decent block of shares. Therefore not much free stock available for the big boys.
Even if there is a takeover bid with so much stock tied up opportunistic players will not risk this venture.
As for the shareprice.... NKP has not behaved like a normal stock. Historically there has been no evidence of the sp rocketing after good news. There has always been doubt in the air. We all know based upon fundamentals that the stock is worth 50c plus BUT Genorah's directors have lost their way in recent years and have destroyed value. Zijin are in to exploit this situation.
Logic tells us that once the $20m is delivered together with the mining licence and Anglo dispute resolved that NKP should go beyond 20c as starters. Then additional value stored for a takeover if not a joint venture.
I am not prepared to make a call on the sp but hope that whowever is left to invest will chase the stock to a higher level.
Still some time available to increase holdings while the next saga comes into play. Stay tuned.
NKP Price at posting:
7.1¢ Sentiment: ST Buy Disclosure: Held
