ItsAValueTrap Posted October 30, 2015 Share Posted October 30, 2015 -Kobex’s liquidation value is in the ballpark of 70 cents/share and currently trades at 50-55 cents/share. (Actual NAV will depend on how much money is wasted on lawyers and severance.) -Almost all of its assets are in cash. The rest is in one stock. -Significant NOLs. Currently, Kingsway Financial (publicly traded) is in an activist battle with Kobex. If Kingsway wins (they might fail), Kingsway will buy back cash at a discount. If enough activists get into this stock, I would think that management will eventually get kicked out. Two of my blog posts on Kobex: http://glennchan.wordpress.com/2015/10/30/kingsway-financials-activist-battle-with-kobex-capital/ http://glennchan.wordpress.com/2015/10/02/kobex-capital-a-pile-of-cash-trading-at-a-discount-with-an-impending-catalyst/ The Altius Minerals thread has a little discussion on Kobex. Link to comment Share on other sites More sharing options...
TwoCitiesCapital Posted October 30, 2015 Share Posted October 30, 2015 You didn't seem to excited about Kobex or the activism in the Altius thread. What's changed? I used to own shares passively in low P/B account. Wasn't really banking on activism or large share repurchases - mostly just made a passive decision to buy shares at CAD 0.48 because you were getting a pretty steep discount to P/B for a stock that was mostly cash. I did end up selling at CAD 0.61, right before Altius disclosed it's sale, because the large ramp-up in price that day proved an opportunistic to book my 27% gain in a holding that was basically cash. I've been watching it since, but have been hesitant given the activism because it could end up eating the very corporate resources that make it valuable as you previously mentioned. Link to comment Share on other sites More sharing options...
nostradamus Posted October 30, 2015 Share Posted October 30, 2015 Good blog posts. I didn't realise that Altius retained some residual stake in Kobex. I have had a kobex stake for quite a while, but now I'm really unsure what to do with it. My original reason for investing was that I thought it would be a good way to get exposure to the depressed junior mining market, for the following reasons: - Every $1 invested gets me $1.30 (ish) in underlying investments. - PvE knows more than I ever will about the junior miners (so should be better placed to avoid the junk). - The Kobex cash pile (and expertise) means they can have access to deals (and ability to influence the deals) that I do not. Since investing I must admit I have been a bit frustrated by their poor shareholder communication. Basically I have no way of knowing whether they are working really hard to find good deals or just sitting on their backsides collecting their salaries from my investment. That said, I would be surprised if it were the latter. Would RR/Sprott as shareholders really just sit by and let PVE and the rest of the board fleece them? I'm hoping not. I've also got mixed views on their lack of investments. On the one hand it is frustrating to only see them do one deal since becoming an investment company (are there really no good opportunities out there yet that they can put into action?). But on the other hand, the longer the resources bear market continues, the greater the opportunities are likely to become. If anything, you could argue that their mistake was investing too early (ie if they waited longer to purchase mountain providence they could have got it cheaper). But now I really don't know what to do. If Kingsway wins, I will have an investment tin a company that is very different to the one I bought originally (ie not junior mining focused). But even if they don't, there could be a lot of money (and time) spent opposing them, which is just a complete waste. If Kobex was not still trading at such a big discount to NAV I think I would sell out.... N. Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted October 30, 2015 Author Share Posted October 30, 2015 You didn't seem to excited about Kobex or the activism in the Altius thread. What's changed? 1- I'm offended by the insiders. 2- The shares are (somewhat) cheap again. Link to comment Share on other sites More sharing options...
Williams406 Posted October 30, 2015 Share Posted October 30, 2015 Phoscan has some similarity to Kobex in that it's stock trades below cash/share with a potential phosphate project thrown in. I would have liked to see someone offer a nickel below cash/share and walk away with a bit of extra cash and a free option on the Martison project. Until something happens, it's a slow erosion of cash to pay salaries/board fees. A Sprott entity is involved as well. Had a tiny stake that was sold due to re-focusing portfolio a bit. I wonder what kind of deal flow small entities like Kobex and Phoscan get to look at? Has Kobex been specific about exactly what type of investments it would like to make? Royalties? Streaming deals? Equity positions in junior miners? Whole projects they can advance themselves? Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted November 3, 2015 Author Share Posted November 3, 2015 http://www.marketwired.com/press-release/kingsway-financial-now-owns-1495-of-kobex-capital-tsx-kfs-2069533.htm Kingsway Financial Now Owns 14.95% of Kobex Capital - Bought less than 50k shares in its tender offer. - Poison pill limits KFS' stake to 15%. Personally, I think that if Kobex were in charge they'd be willing to provide liquidity at 65 cents/share. Link to comment Share on other sites More sharing options...
nostradamus Posted November 9, 2015 Share Posted November 9, 2015 http://www.pressdisplay.com/pressdisplay/viewer.aspx I hope Sprott are paying their own legal bills... N. Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted November 17, 2015 Author Share Posted November 17, 2015 :( Kobex Shareholders Reject Kingsway's Proposal to Remove Current Board http://finance.yahoo.com/news/kobex-shareholders-reject-kingsways-proposal-204053970.html;_ylt=AwrC1zFpnktWRn0AWEyTmYlQ;_ylu=X3oDMTE0dW5rb2I1BGNvbG8DYmYxBHBvcwMyBHZ0aWQDVklEUUJDS18xBHNlYwNzYw-- Link to comment Share on other sites More sharing options...
TwoCitiesCapital Posted November 17, 2015 Share Posted November 17, 2015 :( Kobex Shareholders Reject Kingsway's Proposal to Remove Current Board http://finance.yahoo.com/news/kobex-shareholders-reject-kingsways-proposal-204053970.html;_ylt=AwrC1zFpnktWRn0AWEyTmYlQ;_ylu=X3oDMTE0dW5rb2I1BGNvbG8DYmYxBHBvcwMyBHZ0aWQDVklEUUJDS18xBHNlYwNzYw-- This may be good for those who have yet to get involved in a real way. If Kingsway liquidates in response, we'll probably get to pick up Kobex shares in the 40 cent range again. Link to comment Share on other sites More sharing options...
nostradamus Posted February 23, 2016 Share Posted February 23, 2016 Some recent director buying of shares: https://www.canadianinsider.com/company?menu_tickersearch=KXM%20%7C%20Kobex%20Capital Plus we are approaching the Kobex strategic deal deadline: http://kobex-capital.com/s/NewsReleases.asp?ReportID=730686 The Board has set a deadline of March 31, 2016 to carry out a strategic transaction or distribute its cash resources back to shareholders, in each case subject to shareholder approval. If Kobex does not receive a proposal prior to the end of February 2016, which the Board believes will be advantageous to shareholders, the Board has resolved to take all necessary steps under applicable law to call a meeting of shareholders to consider the dissolution of the Company and a distribution of its assets to shareholders prior to the end of March 2016. N. Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted February 23, 2016 Author Share Posted February 23, 2016 Some recent director buying of shares: https://www.canadianinsider.com/company?menu_tickersearch=KXM%20%7C%20Kobex%20Capital This is a company that suspended its buyback even though its shares were trading at a big discount. :/ I am long. Link to comment Share on other sites More sharing options...
nostradamus Posted February 23, 2016 Share Posted February 23, 2016 I'm long too. The other recent development is that their only investment (mountain providence diamonds) is back near the price that KXM invested. During the Kingsway bid Kobex was siting on a large loss on this investment, which Kingsway tried to use as evidence of mismanagement. However, I guess the recent gains on this investment may be offset by all the money that was wasted on legal bills to fend off Kingsway... N. Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted March 30, 2016 Author Share Posted March 30, 2016 Deadline on Thursday. If they announce a strategic acquisition, I will be so salty. http://kobexminerals.com/s/NewsReleases.asp?ReportID=730686 The Board has set a deadline of March 31, 2016 to carry out a strategic transaction or distribute its cash resources back to shareholders, in each case subject to shareholder approval. Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted April 1, 2016 Author Share Posted April 1, 2016 http://kobex-capital.com/s/NewsReleases.asp?ReportID=744068 The company will do a huge self-tender at 0.655. Then: Option A: Liquidate the company. Option B: Hand over the reins to Kingsway Financial. Link to comment Share on other sites More sharing options...
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