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Question: Hi Peter and team What do you think of NUS involved in under sea mining. They are at an all to low. Thank you
Answer:
We are very cautious (and skeptical) on Nautilus.
It is raising money now by a rights issue, hoping to issue 200 mm new shares at $0.20. That was about a 50% discount to the current price, which is not the way to treat shareholders. It has cash now, but its cash needs to build out drilling ships are huge. The stock is down 90% in a year, and earlier this year was the subject to a 'fake' takeover bid, which is additionally fishy. It has also had disputes with the Papau New Guinea government regardings its exploration rights.
Conceptually, it is interesting. But we would rather pay way more for it once it can actually start drilling the sea bed.
Right now, it is a highly speculative company in need of money, with total disregard for shareholders and extremely risky. Not the idea type of stock.