Most that have been invested with Noront for the past year or so know what typically transpires after Noront releases good/great news - our share price goes down. What kind of news would be required for our S/P to appreciate by 20%? (or as Khareema pointed out, roughly 9 cents) Would it require ultra fantastic news or would decent results be enough given that we are at 52 week lows and an appreciation of $0.09 wouldn't be such a stretch? I do not know definatively but I would guess that decent news would do it.
Having said that, that is not why I am here. I did not sell when we reached our highs (in hindsight my mistake) and I am not interested in selling with a 20%, 30%, 40% etc increase from our current share price level.
Let's hypothetically assume that news is released and our share price doubles to $0.97 (a 100% gain). Are you happy? Are you selling? Perhaps those that have been fortunate enough to have had dry powder and have been buying or accumulating at these levels would be content to take their double and run. Or perhaps those that have been able to bring their average cost down by accumulating at these levels would also be happy recognizing some profits. Those with an average cost north of $0.97 (which I suspect are many) would not likely be sellers but maybe a little more comfortable knowing they are closer to breakeven.
Unless you are in the first 2 aforementioned groups, what is the benefit in todays market climate of releasing 100% share appreciating news? Also keep in mind that without a continued flow of good news in this climate, our share price would once again drift lower.
Here's the dilemma:
In this economic environment, there is not enough news that can be released to dramatically move our share price north. (look at Teck's current price for example)Let's assume that Noront releases a ton of great news and our share price moves up marginally but now all our cards are face up on the table and we ripe for the pickin at prices far below the real potential.
Be careful what you wish for.
Cheers,
Milsy1
