The continued rising of the small shareholders is not only a message to the so called stewards supposedly acting in our best interests and the opportunists at SGH, but also to the wider public, Gov't and Corporate Regulator. Shareholders are sending a very clear message that enough is enough.
Worst case, it may help someone thinking about buying into small cap shares think more about the risks and potential losses. For me, I know over the decades I've been investing I would have been so much better off financially if I had of put my money in property than the sharemarket.
But in fairness, it’s basically NXS that has destroyed my track record! I know people say "but property now is too expensive", but decades ago it was also considered too expensive and everyone wondered how could property prices stay at those levels! And those prices were less than half they are today!
At the end of the day the stock market is a source for small companies to access capital. And it's very cheap for them. But being cheap doesn't mean they have the right to waste it. I would wonder how many of the decisions that have been made about changing strategies on CRUX or some of the money and benefits that have been generously handed out would have gone ahead if the money at stake was their own!!!
Spending $80m on long lead items on CRUX liquids as a stand alone project and then turning around and going back to a joint gas/liquids with a smaller percentage... what the!? We're not talking $2,000 on a letterhead that was printed incorrectly that had to be thrown away. And what have they recovered to date around $3-$5m. They can't be real!?!?
After seeing the IER, I am also of the opinion that the financials of the liquids standalone project with nearer term cash inflows was worth more to us than a pipe dream of some behemoth project starting much later. When I questioned the company on the change of strategy they would not release the numbers and all they could tell me was that the value of the company was worth much more than the 15c that it was then trading and that I should not consider selling out. And now all of a sudden our whole company is worth next to nothing! All of this is a copout!
ALL shareholder need comfort that there are standards for those running the companies we own shares in. How long are they going to allow senior management and directors to get away with destroying capital and walking away without being held accountable!
NBT, you've done an excellent job to gain the amount of publicity and exposure you have and you have my full support! You are people just like the rest of us that have had enough and are sick of people taking our hard earned money and p"£%ing it up against the wall! These amount are material to our future quality of life!
It’s fine for people to say that if you don’t buy into the top 50 - 100 companies by market cap it’s high risk, but how many times have management come to us calling for more money and telling us about these world class assets and that we can make bucket loads of money when the oil/gas starts flowing.
And now they're telling us that our best asset is only worth $200m?
So why do SGH want it so much. Because DV knows what it is really worth!!! And so do the rest of them. Our anonymous shareholder has done a great job to list a number of these.
As I’ve said previously it’s just stupidity and incompetence that have caused this opportune situation for SGH to pick up our assets for a bargain and for current management and board to take an opportunity to escape.
I fully support NBT not publicly stating their strategies on a forum like this as I'm sure that there are a few new members from both NXS and SGH scouring our comments. For those of you working at NXS and SGH enjoy them – because I think we’re all pretty clear how we feel about you and the insulting 2c we’ve been offered from SGH.
The good news with this rebellion is that us SMALL shareholders will have a say this time. Financially it may or may not work out, but at least the fate of NXS will be on our terms and not handed over to SGH by those in NXS wanting to secure their careers and protect their reputations.
If our company is placed into adminstration, management and directors WILL be held accountable and come under scrutiny.
In administration, all of us will have the opportunity to write to the administrator and question any past deal, outcome or release and request that they investigate it to determine if the directors and/or management acted improperly and whether there is any recourse to take action against these people. I will certainly be writing and asking them to look at the MF benefit payout when he didn't leave the company - how did he get away with that!?!?!? I’d be interesting to see if he had a settlement on a property or yacht or Mclaren he purchased at that time.
I’d also call into question the robustness and numbers in the financial models when the decision was made to go from liquids stand alone to the new liquids/gas combined structure. I recall the numbers for liquids standalone were very impressive in presentations provided years back.
So if they made a decision to change structure on the financial returns, how could the NPV for CRUX in current form of $200m in the IER can be anything more than a joke?
In addition, if it is found that the company was trading at any point in time when it was insolvent, shareholders at that point in time will be able to make a claim as a unsecured creditor. I believe the laws have not changed. But others may be able to confirm. Someone can probably do the sums to determine what is left over after paying out secured creditors, what the return would be to unsecured creditors.
In addition, I agree with other comments that the scare tactics used by our great stewards saying that if the deal is not approved by shareholders they will put the company in administration and SEDCO will claim the full amount does not mean that this is necessarily going to be the case. Firstly, administration is not what management want on their CVs. Board member and management careers will be limited to friends that have similar control in their companies. And I certainly won't be looking at those types of companies to invest in!
No truly independent company working in the favour of shareholders will want any senior member on their annual report with the company Nexus Energy (in administration) in their career summary.
The administrators will be far more competent than the people running our company. They are experts in negotiations and litigation. They will be more than capable dealing with SGH, other secured creditors, unsecured creditors and potential purchasers of our assets!
Anyway, that's this week's rant. It's like therapy for me. Helps me forget for a while the large six figure loss these f£"@:&*s have caused me :-)
Thanks again to all those working in NBT and our anonymous fellow shareholder for contributing significant amounts of your personal time to fight on our behalf.
Keep up the great work and you get my thumbs up!
Arobert
NXS Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
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