Niko Resources Ltd NKRSF

Niko another Connacher?

[oilfiftybucks]

Many fell into the value trap with Connacher (CLL), now CLC. There was obviously debt issues and no cash flow to service the debt but the underlying assets were worth more (In theory!), than the debt therefore an asset sale would creat upside in the shares. Well, Shareholders ended up bagholders and no sale occurred. Instead they restructured and did an 800:1 share reversal leaving existing shareholders who paid 15 cents now at current value of of 0.000331 cents. 1,000,000 shares at 15 cents became 1250 shares at $2.60. The insiders were offered the restrucured shares and notes and small guys were left holding the bag.

I tell you this as I think this may happen with Niko, where a restucture will come in to payout the high interest debt and severely dilute existing shareholders. I don't beleive anyone would pay market value or even close to market value on Niko's assets when they know how much trouble they are in therefore a restructure is most likely.

Sorry to be so negative but i'm sick of the delays, management doesn't owns any material shares and therefore are not motivated to help sharehodlers, and lastly there is extreme uncertainty in India as we've seen in the constant delays and untruths from government.

Agree or not agree but i'm finally seeing the light on this one.

Fifty.