RE: RE: Where is a comment from Katusa?To be fair, he did only have a 'hold' rating on NGP all these time. His most recent comments are as follows:
Comments: The only relevant and new information in this release was that testing of the field in Faulkner 1 has not progressed as well as management has wanted. Accordingly, the project valuation is stuck at 35 MW net, rather than the guided 45 MW net. Thus, Faulkner 1 will be in violation of a loan covenant of lender, EIG, so the loan will have to be renegotiated. Furthermore, NGP also drilled an uneconomic well at Crump, which cannot be used for production.
The market responded to this news release with an sell off , essentially giving Blue Mountain no valuation at all. Fortunately, we are on a casey free ride and protected against huge sell off events such as this one. Unfortunately, NGP will probably trade sideways or downwards until a material catalyst can be achieved by the company. This can come way of being acquired or by developing its projects. Either or, investments in utilities are a marathon, not a sprint.
Wondering what will make him flipping NGP to 'buy' rating? below 10 cents? Dropping 50% a day on an exploration company I can stomach through, but on an utility, not named Tokyo Electric?