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Niko Resources Ltd NKRSF

Niko Resources Ltd is an oil and natural gas exploration and production company.


GREY:NKRSF - Post by User

Bullboard Posts
Comment by mining_pays_my_billson Oct 31, 2014 9:23am
249 Views
Post# 23080877

RE:RE:RE:RE:Top notch CEO

RE:RE:RE:RE:Top notch CEOTo be clear with everyone, I know NKO is in trouble, I know they need cash. I am not saying it will be clear sailing and an easy road, I never said that. What I have said, and continue to say is that NKO has more assets than liabilities and are owners of a very valuable resource. They can get cash by selling their assets, pay off their debt, and return to profitability. They have that potential if things are done right. Other companies people are comparing them to did not have that ability. As for why the share price is at 28, I dont know- shorts are driving it down, or major institutions are trying to manipulate the share price to allow for a cheap takeover, or investors are just scared (and rightly so) and are taking something, however small, instead of risking losing it all, oh yeh and it's tax loss selling season. Market cap doesn't always reflect a company real assets and value. The company I work for, in fact, is TSX listed, and our market cap is less than half our assets, and just slightly more than our cash balance. That makes no sense. But there have been times when our market cap was 3x our assets? That makes no sense either. Markets are crazy, and it takes stones if you're going to invest in a company like NKO. Right now if you had 30M$ would you buy NKO? If someone told you ' for 30M$ you get 135M$ cash, a producing oil field and plant in Bangladesh, 140M$ o exploration property in Indonesia, and a 10% stake in a 8B$ gas operation that is producing gas and has a guaranteed buyer for the gas, oh yes and were working at increasing output from that field tenfold. Do you want to purchase all of that, 915M$ worth of stuff, and all future royalties, for 30M$? But you have 699M$ in expenses over the next 5 years.' I would say ' where do I sign?' Thats an inane valuation! Let's not forget, everyone's humming and haaaaing about liabilities- those are due in stages over the next 5 years. NKOs assets are tangeable and sellable right now. Essentially, right now they have 915M available if they liquidate. Just my view. I'm holding. Ive seen this situation turn around before, but I've also seen it go bust. Really up to management. In this case, having done my own DD I feel this will recover. But to each his own, this is my opinion only
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