Novus Energy Inc NOVUF

Educated Gusses?

[jstinvest]

Anyone has some realistic guesses as to why the houses are holding NVS at around the $1 level.  Could we be expecting a financing soon at these levels? If so why? Just doesn't make sense to me that NVS is at $1 when oil is at $108 and their production is 85% oil and NGLs with no hedges? Based on cash flows and available bank lines, they should have enough cash to carry out their operations? Comments appreciated, thanks.

[waffenss]

See Hawkowl post below, I think he summed it up quite well, at least that is what I was thinking too....best 2 U.

[bridgediver]

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[waffenss]

Bridgediver...you said... "The argument that the institutional investors are holding the price down doesn't make much sense.  Collusion on that scale would be hard to do." Why do you think this would be so hard to do? I have watched the trading pattern for aprox the last 5 days, seems very obvious to me big blocks are put up on the ask and then they buy the bid holding it down

[golf20]

One possibility is the number of warrants that are to expire at the end of March. Chances are that a lot are selling to raise the money to exercise the warrant. If that is the case, then the action on this stock has been very good. Just a thought.

[bridgediver]

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[hawkowl1]

Thanks for pointing out those expiring warrants.They were issued in 2009 (15,500,000)with a .75 cent strike price will raise $11,625,000 for NVS. Along with a likely increase in credit line I dont see a financing. FWIW  Second Wave announced a strategic review today.They have an unsolicited bid for the company. Like Novus it has traded in an abnormal fashion lately with above average volume

[moneymotivator]

Its simple investor psycology lots of people bought at that level in the past now a lot of those people are selling to break even, lots of shares need to be change hands. Volume by price is showing significant resistance at $1.05 aswell parabolic SAR is getting close to current share prices once it revereses then bo-om breakout!!!! JMHO have been know to be wrong many times sometimes