(B)(N) NKO Niko Resources Limited

Drama. Niko Resources Limited was a $6 billion company with a stock price of $100 three years ago. Now it’s a $90 million company with a stock price of $1.35 on Friday attributable to “working interests” in far-flung projects in Trinidad and Tobago, India, Indonesia, Bangladesh, and so forth almost none of which produce any oil or gas or of which it is the “operator” and what production there is is not sufficient to pay the bills (Reuters, November 15, 2013, Canada’s Niko raises “going concern” doubt, shares plunge).

That’s an old story but what took investors so long to pull the trigger? Somebody bought it at $100, $80, $60, $40, $20, $10 and $2 yesterday when 8 million shares or 10% of the common stock “changed hands” and now has new owners.

The “price of risk” is a real number. It’s the least stock price at which a company is “likeable” and if it can’t get that price, it isn’t “likeable”.

Exhibit 1: (B)(N) NKO Niko Resources Limited – Risk Price Chart

(B)(N) NKO Niko Resources Limited

Niko Resources Ltd., is engaged in the exploration, development and production of natural gas and oil in India, Bangladesh, Indonesia, the Kurdistan region of Iraq, Trinidad, Pakistan and Madagascar.

(Please Click on the Chart to make it larger if required.)

From the Company: Niko Resources Ltd. engages in the exploration for, development, and production of natural gas and crude oil. The company’s principal producing natural gas and crude oil assets are in the D6 Block in India and in Block 9 in Bangladesh. It also has development opportunities in India, and Trinidad and Tobago; exploration acreage in India, Indonesia, Trinidad and Tobago, Madagascar, and Pakistan; and oil and gas properties in Canada. Niko Resources Ltd. was founded in 1987 and is headquartered in Calgary, Canada.

For more information and additional references to the theory, please see our recent Post, The RiskWerk Company Glossary.

And for more on what risk averse investing has done for us this year, please see our recent Posts on The S&P TSX “Hangdog” Market or The Wall Street Put or specialty markets such as The Dow Transports & Utilities or (B)(N) The Woods Are Burning, or for the real class action, La Dolce Vita – Let’s Do Prada! and It’s For You, Dear on the smartphone business.

And for more stocks at high prices, The World’s Most Talked About Stocks or Earnings Don’t Matter – NASDAQ 100.

And for more on what’s Working in America, Big Oil, Shopping in America or Banking in America, to name just a few.

Postscript

We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond™
Alpha-smart with 100% Capital Safety and 100% Liquidity
Guaranteed
With No Fees and No Loads on Capital

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Disclaimer

Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are, now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”) . The Canada Pension Bond®™ and The Medina Bond®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.