Substantially Undervalued, O&G Situation in play, page-115

Straykiwi,

I think AXT wants to have its own business, all the quarterly's etc say they are looking for the right deal.

PANR was meant to be a short term investment back in 2011, to boost the available cash balance if it turned out successful.

Obviously the timeframe got blown out of the water, as they are only drilling now (4 years later), however they are reaping the rewards of staying the course (so to speak).

If they sold all that PANR holding today they would have over A$12.5M in the bank.

Which is a lot of cash effectively in a shell company, so they can buy something else in the oil & gas sector with it if they wanted or be used as a reverse takeover vehicle for someone to use, possibly Tech which seems the hot sector right now for such transactions.

They are in quite an enviable position, right now. Should VOS#1 prove successful as well, then it will open up even more possibilities for them because of the effective cash in the bank position (ie they can sell out the PANR holding in seconds and turn it into cash).

People are looking at it as an investment company right now & are giving it a significant discount to the underlying NAV. I think there wrong.

Look at OGY or APY in the same space as example's (both looking for deals & trading above there cash value), is AXT any different I don't think so. Its just people aren't currently recognising it that way. When they do or when the transaction occurs the discount will close or even go to a premium and we'll reap the benefits.

Hope that helps

LOTM