Gavin GrahamNiko ResourcesNKO.TODON'T BUYMay 31, 2013

It is quite a small company. It is hugely volatile. There a lot of problems over the years with the pricing of data coming from India regarding a 10% stake in another company. They have too much debt. The price of the gas they sell has been negotiated. A tough name to predict.

Has always been very skeptical about this one through the years. Right now they are in default and trying to do a deal with their creditors. Expects that shareholders will get next to nothing.

This has been a pack of cards falling through. There is kind of an option value building into this company because of its whole macroeconomic play with its geographic location close to some of the basins in India. Fundamentally the balance sheet looks really stretched. They would need a lot of help on the capital markets side in terms of financing alternatives. Trades at a Price to Book of about 6 times.

If you want to be on one side or the other, then you should Short it and hope to buy it back for less. Doesn’t see any catalyst for growth. This company has had a lot of problems.

Always thought the risk was way too great. Huge gamble that it won’t go under.

It looks like they are starting to play with pricing in India. He would stay clear from this kind of situation.

They are getting further delays from the Indian government. It is pure speculation at this point.

This has lower highs and lower lows. Not too much positive he can say about the stock. Stay away from this. The cyclical oriented stocks not do well specifically over the next 3 weeks.

Not that appealing. This company doesn’t tend to benefit from the 2^nd period of seasonal strength for energy. Probably not something you want to pursue.

(Market Call Minute.) A darling at one time, but he would prefer other international plays.

If you are a trader, look at the 10 day low and if it violates that, say Goodbye. Chart shows a low last November of $1.24 and a continuing series of lows since.

He would stay away from this. Highly speculative because there is so much debt. There is talk that after the election in India, there will be a price increase in the gas that this company and their partner get out of the D6 block. Not sure that will happen. If they don’t get that price increase, this equity will probably not be around in 2 years.

(Top Pick May 21/13, Down 62%) The big problem is that they were supposed to get a price increase in India that would allow an increase in production. The problem was that there was an election going on so they removed the price increase for the election. They have started selling non-core assets. He thinks they will do other deals. Once they resolve balance sheet issues, the story will wake up. Wait for the politics to resolve and cash flow to go up.

On his watch list. Would not jump in at this point. There are just too many risks. It could be a Nov/Dec Buy for him. Would like to see a longer base for the company.

(Market Call Minute.)