Post by
JeffreyS on Mar 27, 2023 12:05pm
Why Axe cannot reach $100 per share
If AXE was working on $500 million in contracts the company could reach $100 per share. However, they are partners with Cenovus, Suncor and a 3rd large oil sands company. Those companies which have the right of getting the initial contracts will be highly motivated to buy out the existing shareholders and own this technology. At that point this technology will be obvious the technology to use by the oil sands companies. Those oil sands companies already have a $50 per ton carbon tax which is now reducing their profits by 8.5% by additional carbon taxes. This tax is scheduled to triple by 2030. So we are talking about a 25% reduction in profits by a carbon tax. That tax can be avoided by using Axe technologies. Suncor alone would be paying over $1 billion a year in carbon tax at $150 carbon tax per ton of emissions and the international price of oil over $100 per barrel. These oil sands companies will be incredibly cash rich as the international price of oil goes up. For them to pay $1 billion for this company would be easy and logical. Once one of them starts buying outstanding shares then all of them might jump in. So I expect if not a bidding war some sort of arrangement where they buy the company out as a group. Remember that they might not even have to disclose ownership until each of those three companies get to 10% of ownership. No, this is a compelling buyout. If it were not bought out it could go to several hundred dollars per share by 2030. That is not likely to ever happen. Conclusion: Buyout at a reasonable price for shareholders.