I think market sentiment has overtaken company fundamentals as the basis for setting the SP in the short term (at least over the next 6 months).
The company's SP is very sensitive to overall market performance and with some analysts predicting that the market will get worse before it gets better towards the end of this year, I don't see the share price sustaining a figure over 70c this year. I expect it to trade between 50c and 70c over the next 6 months, based on a low PE which reflects the poor market sentiment.
However as NMS reports higher and higher quarterly results and as market confidence improves next year, I expect it to start rising at a faster pace to catch up to its true value. In short, my predictions are
Dec 08 - PE = 8.5, SP = $0.68 (based on ESP = 8c) Jun 09 - PE = 13, SP = $1.04 (based on EPS = 8c) Dec 09 - PE = 19, SP = $2.28 (based on EPS = 12c)
NMS Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
