NML is due its interrim results now, last year it was the 28th of this month.

They are setting up a new site to explore/research/analyse and all the equipment to do this should be on site now, and drilling should start soon, all this extra news should be covered in the interims.

does anyone have any further positive views on this company ??

How do you mean in the top 200?? What is it??

Well Eric, just remember that the shorters have to buy the shares back at some time in the future... market makers will screw them over so easily.

We will see what post election vibes are over the next week!!!

Stay lucky

There is a Legend at 136th in the Champion Investor league table in Shares magazine this week. if not you, you can still enter but will need to change your name! Actually, a good time to enter because there are only 21 investors in positive territory out of I don't know how many; I know I am languishing around 400th, almost 10% down. However, I have a secred weapon which will project me to the top before the competition is finished. Dosh for winners!

Eric

I don't remember entering!! I could do with the cash - I'm skint at the mo. How do you enter??!!

What is your sacred weapon Eric??

legend: my sacred weapon was really secret but probably does need a lot of faith - and a lot of luck. Not saying except to advise a serious look at Interregnum (ITR)!

Just visit the Champion Investor thread at the top of the list.

Eric

Thanks mate, im entered... am off to dominican for 2 wks but will try to monitor the stocks while away.

Good luck

Where's the big sell?

What big sell?

NJR,

only the offer was lowered today, the bid held steady, trying to tempt buyers in by the looks of it.

Only 1 sell and 3 buys IMHO, no large sell.

Put it this way,

On Monday you could buy up to 250k at 4.38p,

Now you can buy 500k for 4.0p online.

This suggested to me that a big sell had gone through, so I was a bit surprised when none turned up.

Nice to see a few buyers this morning though, at this bargain price.

mjr,

Ok fair enough, in fact there MAY be a large protected sell being worked by the MM's, and IF there is, we won't know until it's complete.

I take your point regarding the lower offer, it does look at though they are trying to tempt in some buyers IMO.

Virtually all the trades today are buys not sells. You can currently buy at 3.98p so fill up whilst you can...these are ridiculously cheap DYOr

Dynamite,

The fact that you can buy at 3.98p when the offer is at 4.25 does not fill me with confidence!

I suspect they have a few to sell, hence the discount to market price.

Dont think theres a big sell there would have been more aggressive moves by the mms to fill the order asap.Its more than likely a placing on the cards at 4p thats waiting in the wings.Probably get news about the first diamonds along with yet another placing which means weeks more of depression as the placed shares come to the market to kill any rally in its tracks.

asmith2,

You coule be right, I think a placing is a distict possibility, but not at 4p, that's too optimistic IMHO.

My guess, at these levels would be 3 - 3.5p, as it will surely have to be at a discount to market price?

They MAY, of course, simply borrow the money, rather than dilute further, and I believe they have a facility arranged should they require to do so.


This is starting to look interesting IMO.

ASMITH2,

If a company places shares with an institution, it doesn't necessarily follow that these shares are then quickly dumped on the market! In fact, the only circumstances where this happens in my experience, is when the placing is with penny share bucket shops eg CE/HB, when those parties sell their shares to their customers at a profit, who then subsequently sell out. I would be very suprised and dissappointed if a placing was done with the penny share bucket shops.

Any other institution is not going to invest in a placing only to dump their lot on the market the next week. For one thing, they will probably have a lock-in agreement and/or warrants.

All in all, a placing will be seen as a good thing by the market in this case, as it will be expected that the company will use the cash to quickly bring in revenue from the mining, rather than it being frittered away just to keep them afloat like in some other companies.

But as Andy says, they also have banking facilities available to them, and since the company is going to be bringing in significant revenue streams in the near future, a short-term option such as a loan would be much better than an equity placing.

mjr,

Nicely worded.

I too would be disappointed if they placed with CE/HB, as they deal with placings from distressed companies as a large discount to the current market price.

CE / HB could be the last port of call for a company that needs cash to survive, and has explored all other routes without success.

I do not see NML as such a company, and feel sure they will be able to raise funds without taking the bucket shop broker route.

A cursory look at the interims shows low cash; although the istuation has been cleaned up since December, under 1m of additional funds were obtained. It seems likely that the April visit to London was to organise cash. Moreover, NML have said that they want to develop a second field in parallel. The problem is that the cap is so low at around 4m. Given that this is expected to be dwarfed by the value of the first year's minings it seems preferable for funds to be a loan, possibly convertible in the future when no one will worry given the anticipated capital growth. The alternative, and this does seem quite likely, is to await the completion of this initial phase in June when we were advised that projections should be available. The sp jumps and a placing is made at a higher value. If it is to be a placing then this strategy seems the obvious one. We could well be talking about annual earnings at greater than the current cap. for goodness sake!

Eric

Eric,

Yes I too think they could well be aiming to do a placing after the initial production run, and a ramp up in shareprice, but that requires them to deliver first, and that suits me.

On the otherhand, those buying in when they announce news run a very good chance of instant dilution, and a drop in price as the placing will almost certainly be a discounted one IMO.

Hard one to call at the moment.

Worth adding that there is very little in the price re the initial production output. We already have sound geological figures from qualified people. With more research in th epipeline it is really a one-way bet at the moment. Sooner or later there is going to be a real run on this share (IMnshO!).

Eric

Theres something just not right about this company at all.The fact that you can buy below the mid price shows how weak this is and is very likely to fall from here 3.5 / 4.0 will be the next quote or 3.75 / 4.0p when the market makerrealises hes run out of mug punters at 3.975!
There has been huge selling into every single rally now I wonder why that is...!Just doesnt sound right to me..