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.
Took a small parcel in OXX with the aim of aggressively building...
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