GREY:NKRSF - Post by User
Post by
dubsbson Dec 01, 2015 6:48am
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Post# 24341630
NIKO in 60 SECONDS
NIKO in 60 SECONDS
FP says Niko Resources a shadow of its former self
2015-11-23 06:32 ET - In the News
The Financial Post reports in its Saturday, Nov. 21, edition that most investors have owned a stock that has gone from pennies, and then seen it soar, only to continue holding it when it comes crashing down again. Post columnist Peter Hodson writes that the stock market produces many of these rags-to-riches-to-rags stories. Many investors who see a stock double, triple and more are too busy counting their winnings to pay much attention to risks at a company. The theory is: if others are buying, then things must be still good at the company. The Globe says maybe we can learn something from them by looking at Niko Resources. In the early 2000s Niko was a $6 stock. Then, it discovered one of the world's largest offshore gas deposits, near India. Forecasts for cash flow surged, and Niko in 2010 traded at $114 per share. Niko shares closed at 10 cents on Friday. The company is famous among investment bankers for a $500-million financing in 2007 priced at $105 per share. Today, the entire market cap is less than $10-million. Government delays, renegotiated gas prices and negative cash flow resulted in a painful experience for shareholders.
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