NWLL, a quick estimate of its POTENTIAL....
I often trade on the ASX, mainly "gold mines like NWLL" and it's rather rare for an Australian stock to display the Bullish behavior of NWLL on its own, because the extent of share purchasing in Australia is usually local and limited... Of course, it's the enthusiasm of the trading in the ADR's with the 10 to 1 multiplying factor that has ignited the stock and possibly caused some concerns to the regulating Authorities in Oz Land...
Heck, they don't know the American Craze for Asian Internet stocks to the extent that we do... So, NWLL will have to explain the very logical reasons for its stock to be so much in demand... For example: it has 7 Millions Subscribers!!!... More than three times the numbers that China.com has just reported...
asia.internet.com
The minimum value of a subscriber is about $200.00 and up to $500.00 a piece... Say $200.00, to be on the low side: that gives a Market Cap for the Chinese Internet Business alone of some US$1.4 Billion, still well below CHINA's... Yet, current ADR's represent only some 10 millions shares (1 ADR = 10 Aussie shares), giving a Market Cap of some $310,000,000, at today's close of about US$31.00... Of course, more shares will be issued for the acquisitions, taking into account the latest price moves...
My guess is that NWLL number of shares will about double post acquisition, giving it a 600 Millions Market Cap at today's price, while a potential Market Cap for NWLL should probably be about US$1.8 Billion (estimated), when taking into account the Internet, Telephony and other Businesses it owns... So, I expect the current share price to increase at least threefolds from current levels to reflect this potential: that's why I believe $100.00 to $120.00 is feasible in the short term... If the $500.00 per Subscriber option was taken, then we're potentially looking at way over $200.00/share...
Disclaimer: This is only my opinion, not a recommendation and no responsibility is accepted for errors or omissions... Potential investors should carry out extensive Due Diligence and only invest what they can afford to lose...
JMHO, F. Goelo + + +
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