ALL TIME LOW today -- Analysis
Ni is trading at ALL TIME LOW on low volume today while Nickel price has gone to the roof, and will go to the moon.
Production will not start until next year, lots of reserve and resources, but why is this stock trading at ALL TIME LOW?
Does the market know something that we do not know?
Certainly the management plan of unlocking value by spinning off NI from NWI failed completely as the combined value of both companies is now less than the value of the original company with a hair cut about 1/3! This is not creating value, this is destroying value.
The initial news came from NWI after spinning off is disappointing as they simply post old information already available on the web for months as a NR. I guess that they were desperate and coming out with a fake NR. that did not help. Then, when the real NR with drilling results came, it did not help either. So, fake news no use, real news no use either.
Results? NI is trading at ALL TIME LOW and NWI trading close to post spin off low as a loving companion.
Clearly NWI and NI management, and their brokerage friends did not manage the spin off well. In fact, quite disastrously if we look back. They should be reprimanded for such disasterous handling of the event.
Look what they did: No organized news releases, no coordinated brokerage support, no coordinated analysts upgrade or new reports.
It is possible that parties (NWI, NI and their supporters) are upset with each other now. We do not know, but the SP shows that there is no rescue effort from any part, not yet.
Of course, we do not know all these things inside and we may never will, but it surely looked all the related parties including NWI management, NI management, their brokerage friends have executed the event in an exceptionally poor manner.
When you call the company, you may want to give a piece of your mind.
Values? yes, great value for both, both at 50% discount. When I go shopping, I like to pick up clothes at 50% discount. Great value for all parties!