Sorry for my delayed response - wasn't at the computer yesterday.
Yep - I started buying several years ago (can't remember exactly when). I was buying it all the way down (some would say this is a bad way to invest) - but I had faith that things would improve, and didn't expect it would get as low as it did. I was buying at .004 when nobody wanted them, and when the company really didn't have much going for it (coking coal was out of favour, and the tin project wasn't even on the radar. Not much money in the bank either). At this point I was nervous, but also accepted that with the potential upside came the very real possibility that I would lose the lot (and it was a pretty substantial amount).
During this time I had several conversations with Gary (MD). He's great to talk to and very open to discussing the company, projects, concerns, etc. That's one of the reasons I kept investing to be honest - I expected that Gary would be able to turn things around.
Fortunately the coking coal price turned around, and tin improved. We did the JV with SML at Redmoor, and were able to raise money. All of these things happened and the future looked a hell of a lot better - and still does.
I think the company is undervalued - but that's my opinion. I still have a fair few shares and will be holding them as I hope one of several things happen in the next 12 months;
1. Positive drill results from Redmoor
2. JV, sale, partnership etc. at Lochinvar to progress this project or realise funds.
3. Still possible tho get some positive results from Otago, or partner who wants to invest.
Regarding the share price - my views below (opinion only).
1. Was undervalued, and unloved. Coking coal price turned around and some interest started returning to the sector.
2. A few of the more popular posters on this forum started posting on NAE and this brought the attention of the stock to a lot of people.
3. Buyers rushed in and traders pushed it higher
4. People took profits and share price fell. By the way - where have all the love-heart posters gone who know they have a massive following on HC??? And who will be honest and admit they followed these people into the stock??
5. We now sit well below recent highs as the heat has gone out of the stock and traders have moved on - maybe they're following the red hearts elsewhere??
Company fundamentals
The company is currently in the best shape it's been in for several years, in my opinion.
* They have several projects across 3 different commodities.
* cash in the bank
* Broker support for raising money
* RCF - major shareholder
* Capable management
* Low market cap.
* Fully funded drill program at Redmoor
Future share price
No idea - but as stated above I think the future is pretty good. Of course, this will depend on drill results at Redmoor, possible outcomes for Lochinvar, and potential of Otago. One positive on any of these will se the price go up (potentially by quite a lot). On the flip side - negative results will see the price potentially fall.
Conclusion(my opinion)
Can't see much downside from here, although with some of the sentiment I'm reading on HC and tax loss selling time it might go a bit lower in the short term.
Everyone has to make their own decision, for their own situation. Fortunately you have a 12-18 month timeframe which gives you time......but anything can happen with micro caps (good or bad) - so you'll have to decide what you want to do.
Hope this helps.
Cheers
Doyle
NAE Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
(20min delay)
