Joe, timing is not guaranteed! NNRI is still in the downtrend, bouncing off the lower end of descending channel with the upper end at 0.55-0.60, where it may break the trend or go back to 0.30s. How do you like my trading jargon? :) Now seriously (although, I was almost serious before). I have been watching NNRI for some time now with intention to buy “somewhere below 0.75”, which is kind of magic price for this stock. I was patient enough to watch it till 0.30s. You are right about future dilution. NNRF will need $15+ mln this year for acquisitions. $7-10 mln they will get from Atoll, another $5-10 mln - from stock offering. Next one will be done at 0.75 (or 1.5, if they are lucky). So, it will be additional 6 – 13 mln shares (IMO). We will increase the stake in two new holdings instead (Velcont and Electroprivod), which are worth the dilution. Especially, assuming that NNRI will move to OTCBB by that time, where these acquisitions will be more appreciated. One more point that is completely missed by US investors: Atoll has moved its production facilities from St. Petersburg in 2007. It’s huge area in the center of St. Petersburg – one of the most expensive real estates in Russia. When I first started looking at NNRF I saw an article in Russian press that claimed that this priceless real estate is one of the main targets of American company. Now I see that they are following the plan, I've already noticed a big office building for rent in SP with Atoll name on it (not 100% sure it’s “our” Atoll). If they sell this area in 2008 it will cover all NNRF expenses and will exceed all other income. IMO.
Bottom line: I am hopeful, don’t know where the bottom is, and will trade part of my position to enter above $1 with free trading shares. Still… it’s a pinky and everything is possible, you know. :)
AI
