Downward pressure on Share priceI've mentioned this before, but maybe it's a goodtime to update this conversation.
How much downward pressure do you guys think there is on the stock once the next financial report is released?
There's a few factors at play
The extent of the loss posted, the amount of negative sentiment over issuing more shares, the sentiment of the contracts that have been awarded, the reported revenue and the consensus of N.L to land major contracts going forward
We will post posting another loss (Again) and the report will include the capital raised through issuing more shares and warrants. The day the news broke we we traded at .34$ and the private placement gave shares at .30$ and additional warrants at .50$. Both of these things will be viewed as a negative by investors and put downward pressure on the stock.
However, we also do have some good-news and the company will also do it's best to spin that story in the report. We are now up and runing, we do have a couple contracts and despite previous delays we are now generating revenue. This will hedge against the rate at which we bleed cash. I also expect a story of sorts like the one Paul was spining during an interview where he said that he was happily suprised that the non-brokered financing was oversubscribed. Investors may view this as a sign of confidence and protect it somewhat from further decline in the share price.
If there is some new contract being finalized (I have no evidence of that) then perhaps they would strategicaly release that alongside the report in order promote a bullish outlook for the stock going forward.
Where do you guys think this will bottom out at after the report and do you intend on buying the dip?
I'm predicting a drop if there's no new contract released alongside of it, but that we won't go under .20$ again. Myself I will be monitoring the situation and will consider reallocting more funds to NL.