OXX 5.26% 3.6¢ octanex limited

screaming buy, page-15

  1. 5,015 Posts.
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    I think using CTP as a comparison was a good example. It has a MC three times that of OXX when you take OXX's cash and asset backing out of the equation. CTP has cash also, but look at the burn rate, that will be used up in no time, OXX has a very sound exploration and investment philosophy ie. "Focus on risk reduction and avoid direct funding of high risk, expensive drilling obligations;
    Farm out to substantial industry participants with the expertise to assess high value opportunities with development potential (e.g. farmout to OMV/ENI and the scope in the Exmouth Plateau for multiple giant and super giant gas fields)." ETC. ETC.
    http://www.octanex.com.au/about-us.html

    CTP already has some of the upside built into the MC, purely from the hype that surrounds the stock IMO. When comparing the upside of both companies i dont care if one is selling "apples" and one is selling "oranges". Its all about what they paid for them, what they plan to do with them, how much it will cost them to do so, the potential profit they can make from them and what is the cost to the company if they are unable to commercialise them. At this current time OXX is a much safer investment with a far better risk/reward ratio. This is not to say CTP wont do well from these levels, but purely IMO of course, i see far too much hinging on the outcome of one well, far far far too much dilution on the horizon for my liking. On the next little pump i will look to take my remaining funds from that stock and roll them into my already larger holding in OXX. I wish you well with CTP and hope you make a motza, too much of a punt for me, prefer to invest here where i see more focused management and real JV's etc.


 
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