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Orex Exploration Inc. V.OX

"Orex Exploration Inc is engaged in the exploration of gold mining sites located in Nova Scotia, Canada. The Company owns goldboro project in Guysborough County, Nova Scotia."


TSXV:OX - Post by User

Bullboard Posts
Post by ngobeon Jul 25, 2010 3:16pm
325 Views
Post# 17295397

Reality Check - Scud

Reality Check - ScudHi Scuderia, I have been an investor with OX for 2 years and have been reading this board's postings since then but I only started to participate since yesterday (please refer to my "some perspective" post so you know where I am coming from).  My aim here is to be constructive and help the company move in better direction not to bash it or make personal attacks.  That said, I believe you and a few others on this board are not critical or realistic enough about the company and its performance.  As I posted earlier as an investor we get paid by the share price not the ounces in the ground, joint ventures, market cap, etc., etc.  So the question is whether OX is close to its true asset value relative to its peers, under prevailing market conditions, reflected in the share price.  If the answer is no what is responsible for that.  We all know that the stock is at a juncture with the decision from Osisko pending so we should expect some pull back.  But pull back from what? -  the price even before the significant drill campaign results were released?  As if we came empty and they hit fool's gold.  A look at OX's chart transposed over major news events should be sobering.  Last year, somewhere around this time after the long awaited 43-101 result was released the stock plunged.  All us knowledgeable OX investors know that was partly due to higher expections of the resouce and the problems with the modeling, lack of inclusion of the area subject to phase 2F drilling, and stringent (and higher cut-off) rules applied - all which I have to say bodes well for the next 43-101 resource estimate.  But to have the share price fall so much where it was not being valued even at half the in the ground newly published 43-101 resource estimate!! why? - at a time and market conditions where other peer stocks with significantly less resources, even some in less stable jurisdictions were propeling higher.  Call it credibility? So how incredible is it that even after Osisko's costly JV but apparently successful program we still find ourselves in the dump?  We have to respect the market and what it is telling us about the company - based on its share price. 

Scuderia, I came accross your posts around the time of the last financing and JV with Osisko last year.  I had talked to Mark and his consultant who I think had a hand in convincing Mark to go with the deal.  The consultant was obviously very upbeat and touted Osisko's reputation and prolific drilling campaigns and being cash rich and having to spend a major part of it for tax reasons he tried to counteract my objections about what I considered lousy terms and stating that Osisko would not do in Orex and this was a friendly JV and they should prove to be very aggressive above and beyond the terms of the contract and should expect upto 4 drills in the property within a month (that was in early November).  Around this time I noted your posts being very optimistic with stock price projections of upto 60 cents within 6 months based on the next drill program.  I could not believe that and thought you might even be the consultant or an insider yourself.  But whether you are an insider / friend or family / consultant or a significant shareholder is not the point.  You have been very supportive of the management even when things appear undefensible.  And you often rationalize this by the significant potential that the stock / company has.  But you keep forgetting that the company is more than its physical assets.  It is the management that helps unlock the value of the assets as relflected on the share price.  A sound management would always make sure that the asset value is as best reflected on the share price relative to the peers and market conditions by affecting and improving factors that they can control (e.g., marketing, diversifying with additional hard and personal assets).

As much as you are an asset to this board with your knowledge and research I believe you are missing a bigger picture that the market keeps reflecting on the share price.  I am in the stock because I believe in its potential (mostly thanks to Osisko) specially at these levels but unless the management changes its ways significantly better we will not come close to the true potential of even its current defined hard assets.  I hope you as a major shareholder that you say you are, take just some of the time you spend on this board and spend it with the management and help them to realize their shortcomings and implement a better strategy to improve the value and share price of the company (I say that because I have tried multiple times and am being ignored).
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