Niko Resources Ltd NKRSF

RE:RE:RE:RE:RE:RE:BP on gas price hike in India

[mining_pays_my_bills]

Rkhosla- that is a great point, and I appreciate that kind of feedback. It's chipping at my valuation, but at least you're not declaring 'Nope! You're wrong NKO going BK!!!" As the bashers would do without any supporting reasoning. So, looking at your non-linear relationship (and i agree stock price and commodity price are not linearly related). 20% drop in commodity cost resulted in a 40% drop in stock price. So, let's say a 40% drop in my 383M$ valuation of NKO's KG-D6 assets. That brings it to 150M$- still 5X more than current market cap. And to that point- NKO produces gas and the price of gas in India went up 30%, while the price of oil did go down as you mentioned. And, like I said before KG-D6 represents less than half their producing assets, plus they have exploration licenses. No matter which way you slice it, NKO is grossly undervalued and due for a correction, be it near term or long term. Disconnects like this don't last forever on the market.