IKN

a plague o both your houses

Nadagold (NG): Don’t say I didn’t warn you

Otto on September 23rd 2008 wrote a post explaining why Novagold (NG) was untouchable, was a set up for a short etc etc…the post finished like this:

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1) They are desperate.
2) They don’t give a damn about shareholders, they just want your money.
Bottom line: AVOID NG LIKE THE PLAGUE
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So cut to today and this press release from NG. Among the pearls contained are;

NovaGold’s unconsolidated cash position has decreased to approximately C$10 million.

If NovaGold is not able to raise additional cash in December, it will not have sufficient cash to meet its obligations.

NovaGold has received a cash call for the Galore Creek Partnership, the entity which owns the Galore Creek project, for approximately C$1.9 million which is due on November 24, 2008. NovaGold does not intend to make this payment……

……..the Company has decided to suspend operations at the Rock Creek mine. The cash flow from Rock Creek which the Company had intended to use to fund its ongoing obligations will therefore not be available.

And a whole bunch of other toxicity. The result? Otto said “sell NG” when the stock stood at $7. Right here right now NG is trading at $0.45 and dropping like a stone. Feel free to mail me and tell me just how annoying I can be sometimes.

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