The isn't really any correlation. Investors understand that if a company has a lot of share in issue it is generally due to the management being pretty dilution happy - but then the BoD can also do a share consolidation in an attempt to hide that fact, see SOU.
But there is documented reference to the consolidation so it never really works.
'Matt said...' - I have a feeling you know the answers to these question but you are posting naive statements to get other peeps to post the negative sentiment... is that right? Anyway, welcome to AIM.
OPEC meeting on 27th as I am sure you are all aware.
"Morgan Stanley said it was pessimistic about OPEC intervention in oil markets as recently as one month ago, but now puts a two-thirds probability on OPEC either calling for stronger enforcement of its existing quota with a production cut, or an outright reduction of the quota."
uk, there are accepted terms for Cash Flow etc in the accountancy world. And when you use these standard terms then Ntog is negative. Cannoball has made up his own definition of CashFlow. It is therefore, as I keep saying, spin. But some investors of course swallow it. I suspect he might come back with an explanation and of course no numbers. And it will still be BS. He needs to start with the actual revenue number and then state what costs he is taking off. Then we all can have a good laugh at what he terms Cash Flow positive.
The fact is that NTOG just isn't making enough money to cover overheads. The company says it is 'Cash Flow Positive' but no one really knows what that means, and it is not a simple concept as ML cannot answer it in a quick email / tweet.
To fund wages, more drills, more acquisitions we need to dilute, or draw down on our loan facility. It is that simple. There is no MM manipulation, zombie nazis, world wide conspiracy against NTOG, it is just simple economics. We need more oil production, especially now the oil price is down on what it was before.
We will only get a larger market cap if we produce more oil (increase revenue) while keeping overheads (admin costs) in check.
uk is correct, the number of shares is irrelevant. What a large number of shares can do is make the sp more volatile I suppose. However if the trend was up, then the number of shares would not stop this.
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