The financials show this to be a healthy, legitimate company. Knowing what we do about NW Oil's history and future prospects, it is also a great growth play. I, for one, never believed this would prove to be a $2 stock this very day, but that it would get there and then some in the coming months and years. When Nord sought a merger instead of a buyout, they were all looking out for greater long term appreciation. They never made a secret of this. I think some people on this board misinterpreted the signals and now are calling them lies. NW Oil is now one of just a handful of junior oil companies that has a legitimate chance of become a major oil company and I'm glad I'm here.
Now one thing I did find interesting in the financials was the lack of cash. This explains, at least to me, why NW Oil would be motivated to go public. As a private company, they fueled growth through primarily private investments. You can only do that for so long before those investments need to be paid back, which cuts into the bottom line. Another way is through JV's with a more cash-rich company (ie. Oil India). The cheapest way for a small company to grow without digging themselves a big, fat whole is through the use of shares. I bet a large portion of those shares are earmarked just for funding growth. What other reason on Earth could there be for having such a substantial amount of restricted shares? Do they have THAT many officers of the company to pay options to? Of course not.
I've said it before. This investement is like getting in on the ground floor of an IPO for one of the fastest growing oil companies on the planet. Those who are valuing the company solely on Q1 numbers are short-sighted indeed. But that's a quality that I've observed in most pink sheet investors on these boards, so I'm not a bit surprised.
Instead of hoping for a higher class of exchange, I'd just be happy with a higher class of investor...
