We Should Examine Some Announcements More Closely - Nextnation
Investors can get lost with the flurry of corporate announcements and run ups by many penny stocks. However, the Heads of Agreement between Nextnation and PT Inovisi Infracom deserves to be looked at more closely. The more I asked around, the more I inquired, it seems this is a highly significant potential deal because of the smallish size of Nextnation and the reputation of PT Inovisi Infracom. The latter has a paid up 2.56bn shares and trades around 6,000 rp. That makes their market cap at US$1.7bn. Thats a RM5.3bn market cap company. Hence Nextnation may have snared a big fish here. Thats like an ACE company doing a deal with the size and heft of Gamuda, IJM or UEM Land. The share price did not move when the HOA was announced, rightly so, because its an HOA. However, investors should take heart if they see significant activity in price and volume of Nextnation as that may indicate some concrete agreement being finalised. Potential Impact: For the six months ended October 2011, Nex...