OXX 5.26% 3.6¢ octanex limited

severely discounted....why?

  1. 6,965 Posts.
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    Took a small parcel in OXX with the aim of aggressively building it up.
    We have a company that is solid as a rock....Quite safe for a junior oiler....with a lowly EV of under $15m.....Net interest of a aouple of Billion $$ in case of success.....Largely derisked being free carried by majors like Shell,STO & OMV.
    Why is it so discounted?
    I found the answer when I read the last annual Report.
    # The intimidating presence of EG Albers on the share register ( he & his controlled entities hold 113m of the FPO shares & 51m of the partly paid shares)
    # numerous companies controlled by EG Albers are being "subsidized" for providing services to OXX.
    # Couldn't understand the 33m "Trustee Shares"....Being held for "sale".....Who or what actually owns them?
    # what would stop Geoff Albers from taking the company private for a small premium.
    There is no denying that OXX is extremely cheap & should trade at 5 times its current MC with a 10 or 20 bagger potential......BUT....What move the SP are strong hands.
    Strong hands will be intimidated by the overwhelming control of Geoff Albers.
    I came to the conclusion that OXX is a reasonable, safe investment but I will not dream of the 20 bagger.
    Any comments welcome.
 
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Currently unlisted public company.

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