Substantially Undervalued, O&G Situation in play, page-94

Hi Stabba

I'm not sure it will retrace, it just did the same as PANR did yesterday.

PANR were £0.40 prior to the news release, they jumped to open at £0.58 traded down to £0.50 at one point then moved all the way back up to close at £0.605 which was a 50% gain from Tuesday closing price. They effectively gapped-up (yes they retraced a fair bit but left a big unfilled gap).

AXT simply went from 3 cents to 4.5 cents and never budged. A similar 50% gain

You also have to appreciate that AXT actually has some gearing simply because of the holding of 7M PANR against its own 131.2M shares (soon to be 139.4M when performance rights are triggered) and the A$ to £ currency rate. Each £0.01 rise in PANR translates into a 0.112 cent rise in AXT's discounted cash NAV.

PANR gained another £0.07 today (11.5%). That moves AXT's discounted cash NAV to 6.9 cents and undiscounted figure to 7.2 cents.

With AXT at 4.5 cents your effectively buying PANR shares for £0.3975 when the true offer price in London is £0.68 !!!!!!!!

The PANR holding is now worth just over A$10 Million and its total debts are A$0.4M. Effectively a $9.6M cash shell.

OGY for example has A$4.6M in the bank & 460M shares outstanding (Cash NAV = 1 cents a share, shareprice 1.2-1.3 cents) trades at a premium.

LOTM