For anyone following GEV – and there don’t seem to be too many in HC Land (at least at this moment); it has been a pretty quiet past few months. However, it now seems as though the reason for the “calm before the storm” is soon to be revealed.
As a rather large holder, and consequently, follower of the stock; here are some of my observations:
- The stock has been nicely soaked up over the last few months.
- There have been no leaks of what is going on (nice to see a company running a tight ship for a change).
- The GEV website was “rebranded” a few weeks ago from effectively being an Enersea website to being a more general sea transport CNG website.
- There was a rather innocuous sentence in the June qtrly stating the following: “The Company expects to finalise its agreement with a CNG technology partner early in the September 2017 quarter”. Wasn’t Enersea GEV’s tech partner?
- Combining the last 2 points, it seems as though Enersea IS NOT GEV’s tech partner and that deal is dead in the water to be replaced by a bigger and better deal for GEV shareholders.
- This deal has been a while coming, but all good things take time.
- I have always believed that GEV would be LNG Mark II. LNG started as a tech play. It now seems to be game on for GEV as it’s about to acquire some tech of its own. To warrant the TH, we must be talking about 100% ownership of game-changing technology rather than a marketing agreement.
- With two pieces of the GEV trilogy in place – the partnership agreement with Meridian and now the technology (almost) taken care of, we only need a stranded gas offtake agreement to complete the Holy Trinity for GEV shareholders. And there is no shortage of stranded gas projects in the world.
As I have posted previously, MB is a visionary and a true entrepreneur. He understands gas markets as well as anyone in the industry and probably better than most. He has a vested interest in getting GEV to an enormous market cap as he is one of the major shareholders and, given his age, this should be his last hurrah running a publicly listed company. He is also getting a pathetically low salary and has paid for most of his stock, showing a commitment to GEV displayed by few officers of public companies.
MB is a also a proven company builder, who has raised billions for massive projects over the years. Building companies, as distinct from ramping a share price, takes time. With 2 of the 3 prongs of the trident now in place, I expect greater interest in GEV going forward. IMHO, GEV is the surest thing to a 10-bagger from current levels that I have seen on the ASX in a loooong time.
(20min delay)
