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19/05/15
17:05
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Originally posted by kiwi-nz
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I spent 3 months researching all junior E&P oil companies listed on the ASX. AKK was the one that stood out. Seems everyone has forgotten shares were consolidated to 1 for 10 end of last year. Massively undervalued, possibly due to a lack of regular updates but if people conduct their own in depth research from announcements on the ASX & AKK's website (including annual report and broker reports), there would be no sellers of shares. A mainstream bank would not lend them money unless it was cash flow positive, even if it had a strong asset base. Given the number of shares on issue, generally the daily volume traded is zilch. If someone made a takeover play, they would have to offer a huge premium to gain any traction. This is definitely a counter cyclical play given the oil price but for those with patience, the rewards will be huge. My belief from my own research is backed up by the fact I am in the top 20 shareholders in the company (most shares bought at a premium to last traded price but I am still smiling).
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As a well burnt holder of AKK I feel very sorry for you if you are in the top 20 holders of this outfit.
(Wont call them a company as don't even think they deserve that small compliment.....)