OTCPK:MGMXD - Post by User
Post by
materialsgirlon Oct 30, 2016 11:38am
157 Views
Post# 25403256
Sheer bad luck has played a role in AXY failure
Sheer bad luck has played a role in AXY failurehttps://www.bbc.com/news/world-europe-37813564
Bad management is the prime reason for AXY's long term failure. But it is not the sole cause.
Perhaps 10% to 15% of the cause is sheer bad luck.
Iceland once again faces political chaos. The Pirates party has 10 seats out of the 63 total seats. The Pirates is a more serious party than the Rhinoceros party in Canada but not by much. Essentially, it is against everything. It taps into the same voter unhappiness as the Brexit and Trump voters. We are on the edge of capital controls again or perhaps outright confiscation of AXY assets. International law would force Iceland to pay a price for the assets but eventually, after 5 or 6 years of lawyers fighting the agreed upon price might be only 50% or 60% of NAV.
So, AXY management has suffered from some bad luck and this is partly to blame for shareholders suffering.
On the other hand, Ross Beaty is 100% to blame for closing his eyes and pretending that everything is just fine and happy days are ahead. The AXY team is bloated (too much staff) and
overpaid. "There are none so blind as those that will not see". Ross Beaty and the Board are 100% to blame for knowingly turning on their blinders and ignoring the real interests of shareholders.
You would have to be "blind" to disagree with me!!!!
Have fun
Mat