RE: RE: RE: RE: RE: Rally right around the cornerWell, I will reply to my own question as the rest of you seem a little shell shocked.
I read the news release and I will admit to you that I have not studied a lot this company over the months, but when you lose 50 percent in a day, you better as a company be near done.
This company is not even close to near done. They have 4-5 projects on the go. Potential exists for all of them. They have received huge government backing in the past for this clean energy source. The government invested in this will not allow a bad scenario to play out.
The news of the day Blue Mountain dropping power by 2.5% while not good is hardly the stuff of the contagion that we saw today.
They will need to refinance their loan and again that is not ideal obviously, but with operating cash in reserve according to the release for the rest of 2011, there is no danger in my estimation of the kind of company carnage that caused today's sp carnage.
I think this was one of those momentum sell offs and this is an excellent moment to buy this company. I suspect that the fear will carry through to about 10:15 tomorrow morning and at that time whatever the price is it will be time to buy this.
Refinancing always scares the bejeebers out of people, but I always go back in my head to Teck Cominco and Novagold during the crash of 2008. Novagold went to .50 cents and then the re-financing got done and recently it touched 15 dollars.
I'm not saying NGP does anything even remotely that spectacular, but 50% off on top of the already 40% it had already fallen in the previous month leaves me reminding myself that when the fear is ends the logic begins.