Icebergshares: Battle for Planet NWOG.

The market doesn’t do anything out of whim or whimsy. So why did various people take a position in NEW? Why does there seem to be a battle for a company with no assets…? Why is the current SP .26?

So many questions, so few answers…

A few points NEW is cash rich, they have:

1. £400k in the bank.
2. £1m left to be paid  from the Niel deal.
3. £800k owed to them by director loans.

Total £2.2m without a placing..current MCAP without a placing £1.83m, the market stabilised at this level, not through chance, but it’s a simple cash in the bank value.

Given the OO go ahead, we could easily add £1.5m to this.

We’ve also got the Danish CPR due next month, this is expected to put a risk adjusted value of £2m on the resource and is the blocker preventing successful farm in.

The AIM listing for a cash rich shell company should add a further £500k-£1m to the Mcap.

Given all this anybody buying into NEW its lower price is set to make a handy sum of money.

I do wonder whether this was the plan all along, get the SP to its low of the low figure, issue hundreds of millions of shares or warrants to the BOD, see a dramatic rise in the SP, thanks to the valuable CPR, farm in and added highly lucrative new project.

The only problem is that several other people saw this as well, notably Chris and BMD and MTR.  Buying of stock took place. Suddenly it dawned on folks that a short squeeze was on. The price rose to .8p which was the trigger for selling as this was no doubt the exit strategy for a few folks given the above calculations.

Lets make it very very clear that even at the current value the company is still undervalued and could still see a multi-bag even without any short squeeze, don’t believe folks that tell you otherwise.

The company will resume trading very quickly, there is no doubt as to whether or not NEW is a “going concern”.