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Thank you Norb Tobin Dana for alerting us to North - it seems such an anomaly and a hugely interesting situation here
I have again put in another fill or kill at 1.85 with HL for £10k worth
Let’s see what happens GLA
Norb reply continued....
Norb reply
Tobin, your figures makes sense. We havent seen any sign of new investments since Q1, and after the final settlement with the tax authorities in early April. Thats why I argue they still sit at MGBP 11,7 in cash. During Q2 they have paid a dividend of MGBP 1,8 to their major shareholders from a group entity owned 80/20 which they now are merging with NORTH. This could also be the main reason why they sold +5 mill shares in TXP in Q2 - to keep their cash balance more or less unchanged after the dividend.
TXP came as a surprise 3-4 years ago, and they may pull something like that out of the hat one more time, but I expect that their assets as of today looks like something like this:
+ Cash MGBP 11,7
+ TXP MGBP 9,3
+ REACH MGBP 4,4
+ IOX shares MGBP 0,27
+ IOX Bonds MGBP 0,6
= Total assets MGBP 26,7
Total shares 119 million each GBP 0,22
Last closing at OSX GBP 0,12
As you will appreciate this is now historic in that the shares in Reach and Touchstone shares have risen, as have North Energy, but a LONG way to go to catch up with the asset value.
Norb if you get the chance to do an update, it would be much appreciated by all, thank you.
I think that lots more TXP Investors will follow us, especially if (when) Chinook hits gas!!!
These are the previous posts from the TXP page.
Norb and Tobin are stars
Here is a rather funny fact about NORTH as it seems to be a really cheap entry to TXP compared to AIM and TSX based on its current MCAP. It closed at NOK 1,45 on Friday which equals a MCAP of MGBP 14,7. Of which cash equals 11,7. If we assume that the rest of their assets excluding TXP (no debt other than some minor liabilities and accruals) of MGBP 5,3 also can be sold to their current market value (primarily shares and bonds listed at OSX), their position in TXP is in fact valued with a negative amount of MGBP 2,3 on Friday July 24th.
If someone offered NOK 2 per share of NORTH - a total of MGBP 20, they would acquire the 6,9% stake in TXP at a discount of 65% compared to the last closing price at AIM - GBP 0,735. Further more, to make it even more exciting - you would still have MBGP 17 of cash at hand to increase your position in TXP.
Go figure.
==========================
Tobin also did an analysis
North is on the Norway stock exchange, fairly safe.
March financial report they stood at 50% discount to NAV, they had been sold of heavily like so many in the sector. They had more cash than their NAV and TXP their main investment. At that time TXP was 24p/share and valuation of TXP in portfolio approx £4.9million. If they hadnt sold any it would be about £15million. The 6.9% is now worth £9.31million. How much did they make selling TXP shares? £2million-£3Million?. If they sat on that cash they would have about £14million cash.
Still as much cash as their capitation.
They have Shares in reach subsea, they are up 38% since March 31st, so if they still own them, then worth 4.4million now.
If the other 8% on investments havent gone up, and remember we are talking of 31st March, they would still be £1.7million.
So investments txp, reach and others would be £15.4 million. So even though their SP is up they are likely to be still sitting at a discount of >50% to NAV, thanks to TXP
They were saying that they were going to invest some of their cash. If they did those investments could have done rather well over the past few months.
TXP was 23% of NAV. Now it will be over 30%
And they have done big share buy backs...
They had some tax question hanging over them, but that was dropped.
2nd quarter report out on 31st August.
It looks a bargain.
===========================
Norb reply
Tobin, your figures makes sense. We havent seen any sign of new investments since Q1, and after the final settlement with the tax authorities in early April. Thats why I argue they still sit at MGBP 11,7 in cash. During Q2 they have paid a dividend of MGBP 1,8 to their major shareholders from a group entity owned 80/20 which they now are merging with NORTH. This could also be the main reason why they sold +5 mill shares in TXP in Q2 - to keep their cash balance more or less unchanged after the dividend.
TXP came as a surprise 3-4 years ago, and they may pull something like that out of t
Nice find Norb - will add to the positive momentum which seems to be building here
Took my first punt yday -Just freeing up funds for another buy tomorrow
Not quite your 100k Dana ( please let me buy first !! )but still a nice chunk
Will be interesting to see if it moves price
GLA
Suppose not dana. cheers
GLA
Even better. New contract to REACH
https://newsweb.oslobors.no/message/511661
The f/x charge is nothing compared with what we are expecting over the next six months, imho.
I have started looking at #NorthEnerrgyASA on twitter, and made a post encouraging them on to the AIM market.
#NorthEnergyASA and @NorthEnergyASA not a post since 2011.
That will change, believe me.
I bought a small holding here yesterday at 1.7. Today I'm in profit .Just a pity re f/x charge.
GLA
if more than three or four UK buyers started buying?
I am tempted to throw £100k at this for a bit of fun.
I think I would spike myself rather badly and give a lot of people the chance to get out at a profit.
Not my strategy, it is much longer run than that.
Its interesting to see that NORTH is sensitive to how REACH SP performs, while TXP SP and its potential seems to have little or almost no effect. Probably because the market has been left in the dark too long about the true nature of this position. Also why, or if they still sit with a lot of cash at hand. We will soon know.
I think that we are going to have a great deal of fun with North Energy.
It amazes me that the Norwegian Market seems to be disinterested and cannot seem to see its potential.
I think that once the quarterly results come out, there may very well be some positive movement.
There will also be substantial upward movement at the end of November also...... and again in February, May.....
Same as Touchstone TXP, which we all know and love.
I like the fact that there are some other winners in this portfolio in addition.
I am the guilty one. I just had to see what happened if I filled the allmost empty gap from 1,7 to 1,99. Sorry about that. But it also confirms what to expect if really good news arrive.
Maybe your 2 cents is right Norb
Not showing a rise on here but my HL is showing up 12% this last 10 mins at 1.82
Interesting!
This is speculation based on some simple facts. Nothing else.
NORTH is holding 1,8 mill shares and bonds worth approx MUSD 1 in Interoil listed at OSX
https://www.interoil.no/
Largest shareholder in Interoil is
https://integracapital.com/
GM in Interoil approved an increase in capital in June, and they can issue 80 mill new shares - a 50% increase from 153 mill to 233 mill shares.
https://ml-eu.globenewswire.com/Resource/Download/e3099b80-bc6e-41c6-a9a7-5bceb3b97194
It is expected that Interoil will invest in new assets. Such as Lithium or other natural resources in SA
https://www.interoil.no/wp-content/uploads/2019/07/Interoil-IOX-Prospectus-18-July-2019.pdf
I suspect there is a link between NORTH and Integra Capital which has a strong position in Argentina/SA. Especially based on the network of its President Jose Manzano
https://en.wikipedia.org/wiki/Jos%C3%A9_Luis_Manzano
Integra is already invested in Lithium
https://smallcaps.com.au/latin-resources-backing-argentine-investment-house-key-lithium-project/
http://desarrolloenergetico.hernandobry.com/integra-recursos-naturales-explorara-tres-salares-en-jujuy-en-busca-de-litio/
NORTH is probably still sitting at around MGBP 12 in cash since the tax dispute was settled in April. I havent seen or heard any news about new investments in Q2, but I wouldnt be surprised if NORTH was invited to take part in investments in new assets facilitated by Jose/Integra Capital. Directly, or indirectly through an increased position in Interoil.
My two cents. Probably less.
In at 1.6949 -pretty pleased with that
14.57p I think ?
Need to do a little more research on the dividend front - am I right in thinking 0.30 paid out last yr ?
Thanks Dana - will take a look at prem Service later
I’ve been called a lot worse than Lemon !! - made me laugh !!!
GLA
Not just TXP doing well for North at the moment. Reach Subsea (31% holding) end of 1st qtr -0.82 NOK currently 1.54 bouncing back strongly.
Lexion, treat yourself to the L2 upgrade - try it for a month you can choose the pay monthly option. Don't go for thetop one, but one down from it. Level 2 is worth trying - you can see what's happening. I have sent you a private message and you can read it if you upgrade.
Hi lemon join the crew very few trades showing on London stock exchange trades and 3 of them are mine. I found that the only way to do it was to put in a limit order over the phone yesterday I put in a maximum price of 16 pence and today 15 pence and got them
Hi again Lexion
Some useful links
https://www.oslobors.no/ob_eng/markedsaktivitet/#/details/NORTH.OAX/data
https://northenergy.no/investor-relations/share-performance/
https://northenergy.no/north-energy/board-management/
I think North will do well for us. Huge latent value imho.
Sorry lexion it was auto correct that called you lemon!
My £15,000 purchase yesterday resulted in the top price for North for the last year but not reported on the Oslo exchange for some reason.
Low-volume share with an average of £12,000 per day so we could liven it up. Am encouraging North to take an aim dual listing
That may take some time.
Hi lemon join the crew very few trades showing on London stock exchange trades and 3 of them are mine. I found that the only way to do it was to put in a limit order over the phone yesterday I put in a maximum price of 16 pence and today 15 pence and got them
Hello Guys
Just put a buy order in
Can’t get a live quote so placed in fill or kill at 1.70
Let’s see what happens
The thought of having a few more TXP for next to nothing was an opportunity I couldn’t resist ! GLA
I managed to get a trade through today, but it is hard work.
Stock Name Quantity Price Consideration
Transaction Type: Buy
NORTH ENERGY ASA COM STK NOK1
99,251 £ 0.149600 £ 14847.95
Not happy with the 1% foreign exchange on each buy or sell, but immaterial to the overall scheme of things.