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Nordex Explosives Ltd V.NXX

"Nordex Explosives Ltd is engaged in development, manufacturing and resale of explosives products in Canada."


TSXV:NXX - Post by User

Comment by withoutabiason Apr 17, 2014 12:13pm
107 Views
Post# 22463575

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Testing Patience

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Testing PatienceWhat about answering my question?Why this stock has been a dead duck for the last couple of years? Underperforming peers in the same industry and the  general market  indices?
That's what originated this thread " Testing patience".

I humbly suggested that it is lack of market confidence in the current board. What else could it be?
The fundamentals for this company never looked better in some 44 years. About 30 years ago, with much weaker fundamentals, this stock was trading solidly above a dollar. In case you don't know there was never a stock split. Adjust for inflation, and you should have close to $2 stock price we should be trading at  just to break even for older shareholders.

Lack of profits is  a significant concern. I apply definition of lootind as the application of corporate resources that do not enhance corporate profitability. 

If you had a clue about financial accounting you would know that the cost of new satelite sites and new production plants is amortized over expected life expectancy of these assets. As such  they do not affect reported profits. Increased manpower leads to increased production and leads to higher profits. That's why fairly managed   corporations do hiher new employees. Are you suggesting that Jim Taylor is hiring dead wood of friends and family members that are not producing anything?

You cannot find anything supporting speculation that something may be going wrong? Of course the perpetrators will never issue public releases that they are doing anything of this nature. I wish that shareholders could engage forensic accountants to verify that, and I would gladly pay the cost of it. The auditors, in case you do not know that, are basically relying on information flow from management and do not detect  the inapropriate application of resources.

To get you started understanding basics of the concerns about potential misallocation of corporate resources I suggest you review information about James Moon, Michael Comeau and All Group Financial Services and the settlements they had to make with regulators. Fascinating reading! Example, Micheal Comeau and his family received shares of Gray Wlf "for no apparent financial consideration".  This basically show the charachter of the people who assumed control of the corporation. Or look at the performance of stocks they got involved, such as AQA, MOO or PRC.

I have posted here a little about Aquila. Feel free to read it. Enjoy!
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