I not sure many of their operations will be impacted by the ongoing trade battle between China and the USA based on their business operations. I think these retracements are typical of small cap shares in between key announcements. Quite often people jump on after the announcement driving the share up before it retraces to more suitable levels before another announcement drives the price back up. Over time the new baseline should be higher if the company is developing. I have gone back and researched this share to death. The one thing that stands out is both the growth projection it is on and the number of revenue streams. Unlike some other companies which have one primary function and it’s simple to understand NOV has multiple arms some which are not as obvious. For example the China payment systems for Chinese living in Australia to pay their bills back home. This alone is massive and arguably could be a start up company by itself. However, it might not be immediately noticeable if people have not done their research and understand why this service is important for them due to the limitations of their banking structures. Combined with the multiple revenue generating streams the businesses they are purchasing or developing are aimed at generating a customer base which will then be tapped into once they have their banking licence. It these multiple growth opportunities that puts this share in a unique position. Don’t get me wrong it is still in its early days and the MC is reflecting this so I am waiting for the next quarterlies before I decide if I wish to to add to my holdings. For me it’s not about how many shares I own at 20c, 25c or even 30c. I am more interested in is the revenue continuing to grow and are they executing on some of the big revenue developing opportunities. If they are then I will be happy to top up as it gets to 30,50,80c an beyond because then I will know it’s a long term hold. DYOR
