NKP 0.00% 9.9¢ nkwe platinum limited

nkp actions - a different perspective

  1. 90 Posts.
    As most of you are aware Genorrah is the majority shareholder of NKP and the rest of us are really all along for the ride.

    Now management are usually quite competent at running a company but are always extremely competent at looking after themselves.

    Now in this situation what would NKP management be focused on? They will be focus on delivering what Genorrah want as they are the majority shareholder and can get rid of management if they so wanted to.

    Now what do Genorrah want and care about. They want to ensure:
    1) a good resource upgrade
    2) a positive BFS
    3) that Xstrata exercise their option
    4) a smooth transition from explorer to producer
    All these things will deliver medium to long term value and ensure a share price of $ in a few years time.

    Is any of this impacted by whether NKP makes or misses an announcement deadline or the resultant short term share price movement? The answer is no.

    Therefore will NKP management be focused on whether NKP makes or misses an announcement deadline or the resultant short term share price movement? The answer is probably no.

    Management will be focus on delivering medium to long term value. This may outrage the short term traders that NKP management have not got them higher up the priority list but thems the breaks.

    Note also that management get no personal benefit from any short term share price uplift. If they had a stack of options that were close to being in the money you may then find a situation where management intentions may align with short term trader's wishes.

    Based on the annual report I think those two stars will align when the NKP share price is around 90c... :)

    In the meantime - chill...
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.