why isnt the buy back in place?
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why isnt the buy back in place?
IMO buyback should stay on hold till after PRC starts trading or there is some measure of PRC value.
At least we can see what NZO market value is without buyback distortion.
Buyback was good when the future looked boring, but I hope it stays on hold till after the drama passes.
it would be good to know whether the buy-back has been suspended by nzo or if it is just at the brokers discretion .
With the strong oil price-now very close to Diggers prediction of a $100 by the end of the year nzo seems to be trading as if it has lost its whole investment in prc . The outcome of this is uncertain but i would not right it off completely as there still could be assets and an insurance policy . NZO has extended the expiry date of the loan to mid-february but i do suspect it is first ranking debt .
ps I see tapis is now us $96.07-a 2 year high . Tui oil is sold at a small premium to this
Totally agree Flintstone. In fact i had considered emailing NZO to ask that same thing. In such an rare circumstances as the Mine blowing up it is not the job of NZO to reset the value of any company.It is for the market.
NZO now has to be very careful with its money and a buy back is no longer the best use of it.To my mind NZO should establish an intention as early as possible to maintain the 5 cent dividend.That would better put a floor under the SP than intervention of a buyback.
There are many unknowns about where to go with PIKE.Unless major changes are put in place NZO would be best to walk away from the mine.Roughtly in my mind PIKE-1 is gone.We just can not carry on as we have. PIKE-2 is something i am still working on and i believe i have some very good ideas to put to management but now is not yet the time.
But flintstone back to your post.Yes lets wait and see what the market says about PRC once it restarts trading,without any interference from NZO in the market.
What was the purpose for the original buy back. To me it does nothing more than temporarily give an artifical sense of confidence that doesnt really exist anyway. All it does is slightly artifically prop up a shareprice of a stock with all things being equal. It certainly doesn't contribute to creating wealth for the company and it has a neagtive impact on cash reserves and ultimately cash flow. I would never say not do it. If NZO has more money than it can do with then that might be a good situation. None the less I ultimately see as management saying we don't have confidence in buying other business ventures, exploration permits etc.
Kupe is a great investment and they have doen well out of Tui. Where is their growth going to come from. For me, the last 2 years with strong cash coffers was an opportune time to venture out, graps other opportunities and I feel there were like possums in the headlights and have missed an opportunity of a decade. Anyone care to say where future growth is going to come from because if your main concern is about share buy back etc then you are better putting your money into term deposits.
NITA
i said it before on this forum and know it sounds crazy but they probably still look to save the money to salvage PRC, until they can untangle themselves out of that, or come up with some bullet proof scheme to do so S/H will be in for some fun.
But they may have some knowledge up there sleeves that the rest of us are unaware of.
Or they could be just a bunch of Possums staring transfixed into the headlights with no idea WTF to do....until all the investigations into PRC are complete, perhaps a year or even potentially longer ?
The market has already wiped the full value of the PRC investment off NZO's share price, together with the full value of funds advanced to PRC and for good measure a bit more besides so it appears there is concern regarding the NZO directors objectivity in relation to their (ongoing ?) committment to PRC and its effect on NZO..
"Throwing good money after bad" seems to be an expression that very readily comes to my mind, anyone else thinking along the same lines ?
Keep talking it down Roger I have some money coming available next week.
since were talking down........
TR was and is always after a whale, thats why the divi stream is low,
pike is big...... real big, so big it could wipe out NZO as well.
so ......... TR will go forth and redevelop the mine and will use money from anywhere he can get his hands on.
share holders are the easiest target.