Novo Resources Corp T.NVO

Wall of Worry

[Mineshack]

The market slapped-down Novo 26% today on news the company is responding to its negative cash flow problem and the delays in obtaining fresh rock mining permission from the government.

• Production to pause by a phased wind-down of operational activities finishing by the end of October 2022.

This news proves management is concerned about its own success and reputations. What incentive is there in allowing the company to fail?

 

• Production expected to commence in approximately 12-18 months.

 

Ending the steady bleed of negative cash flow while defining and permitting higher grade resources is what we knew management needs to do.

I think the market is wrong today. The future just got brighter for shareholders. The stock price should be up on this good news and may currently be the best value among resource opportunities.
 
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[PulpCutter]

But the metaphor is 'CLIMBING a wall of worry', not accelerating down it, LOL> The metaphor captures the feeling of holding shares in a burgeoning business, which each jump up in share price 'feels' like it might finally be over-done.   Not sure the metaphor fits the case of every business that one might be worried about. Sometimes the concerns are quite legitimate

[gaserx2]

Great post Mineshack. I agree and I think things should improve and look brighter going forward. My opinion with so many of these junior miners and penny stocks, the insiders or ones in the know love to manipulate them down and knock the sh!t out of the little guy retail investors. All the while they are buying on the cheap and loading up. Knowing full well that the prospects are good and if they

[ValuePro]

I was a buyer today.  I missed the low but got pretty close to it.  ...looking for a bounce tomorrow.  

[AlwaysLong683]

No offense, but I think you're "seeing" it wrong. While it's true there is a buyer for every seller, when the share price plummets, it means sellers are willing to accept lower and lower ask prices to get rid of their shares, and buyers are getting filled at lower and lower bid prices. Combine the one-day 26% drop with very high volume (1M shares traded vs. NVO's 30-day

[ValuePro]

Indeed, you are welcome to your opinion, but market action going into mid-day suggests that many of yesterday's sellers are among today's buyers, regretting what they did.  And some buyers yesterday looked at it as I did, meaning the shares were oversold compared to asset values and receivables.  Thus, I was a buyer late in the day.  These observations support my prediction

[BuccaneerIllld]

This post has been removed in accordance with Community Policy

[AlwaysLong683]

or......it could be short-term speculators / day-traders bought at low prices yesterday anticipating a dead cat bounce today and are selling and locking in one-day profits as they expected others to believe NVO was "oversold" yesterday and would buy today and drive up the share price.....?

[ValuePro]

Or, the market action between yesterday and today means whatever you or I want to mean.  I put my money behind my sense of it.  How about you?  Do you cover your short, or not?